Anyone who has so much as dipped a toe into the real estate market knows that buying a home
can be a time-consuming effort. Determining what kind of home you want, figuring out your
budget, investigating neighbourhoods, searching for homes that interest you, booking
appointments, visiting Open Houses, and arranging financing can seriously eat into your spare
time (and your not-so-spare time, for that matter). It can be a daunting prospect, especially for
first-time buyers.
Working with a real estate professional can simplify your home-buying process immensely. Here
are just a few of the things that he or she will look after on your behalf:
• finds homes that meet your needs and wants
• arranges viewing appointments and accompanies you to showings
• provides you with information about comparable properties so you get a clearer picture of
what you should expect to pay for a given home
• when you’re ready, writes up your offer and presents it to the sellers
• negotiates on your behalf to reach an agreement
Think of these as things you could do on your own, but that would take up a lot of your time and
energy and might not be things you feel comfortable doing. Real estate professionals are welleducated
about the laws governing the sale and purchase of real property, and many of us focus
specifically on working with buyers. We can help you get from the start of your home search to
the closing date smoothly and efficiently.
While you’re in the process of buying that first home, it’s important to take a hard look at your
budget and lifestyle when determining how much you spend on it. Be realistic. Leave room in
your monthly budget for emergencies and small luxuries. That may mean buying a different
home than the one you’ve always envisioned, but how many of us want to be so “house poor”
that we can’t afford occasional treats like dinner out or a new pair of shoes? There are plenty of
well-appointed homes at many different price points in and around Ottawa, and a real estate
professional can help you find the ones that fit your budget. Remember to also plan for closing
costs, new furniture and any appliances or renovations your new abode might need. Your real
estate professional can help you figure out how much to set aside for these items.
You can also take advantage of tools such as the federal Home Buyer’s Plan, which allows firsttime
homebuyers to withdraw up to $25,000 from their RRSP to put towards their down
payment. That’s $25,000 per person, so if you’re buying a home with a spouse, you can each
withdraw up to that amount from your retirement savings. First-time homebuyers are also
eligible for a Land Transfer Tax rebate of up to $2,000 from the province, no matter whether
you’re buying a resale home or one that’s newly built.
So if you’re ready to become a homeowner, jump right in – with a real estate professional at your
side to help make the process much less daunting. You can find a roster of members of the Ottawa Real Estate Board at www.OttawaRealEstate.org. Or call/email Ian Ponting. 613-222-2662 or ian@royallepage.ca
The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the January 21, 2010 issue of the EMC community newspapers
Wednesday, January 27, 2010
Tuesday, January 26, 2010
January 2010 Newsletter-
Click here for my first Newsletter of 2010:
http://www.royallepagemc.ca/11/20911/272327/272327.html
http://www.royallepagemc.ca/11/20911/272327/272327.html
Thursday, January 07, 2010
Royal LePage Press Release-
CANADA’S REAL ESTATE MARKET EXPECTED TO CONTINUE STRONG GAINS INTO THE FIRST HALF OF 2010
Demand and supply finding balance in the second half of the year
TORONTO, January 7, 2010 – Canada’s residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today’s Royal LePage House Price Survey and Market Survey Forecast. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement of interest rates, together with an improvement in listings supply as confidence improves, are expected to bring the market back into balance in the second half of the year, when home price increases are expected to moderate.
“The Canadian real estate market enters 2010 with considerable momentum from a unusually strong finish to the previous year, said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010.”
In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. The average price of detached bungalows rose to $315,055 (up 6.0%), the price of standard two-storey homes rose to $353,026 (up 5.2%), and the price of a standard condominium rose to $205, 756 (up 6.4%). The first two quarters of 2009 saw significant year-over-year price declines across the housing types surveyed and the third quarter provided the first signs saw a strong rebound in Canadian home values.
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.
“No other sector of the economy has been as highly affected by economic stimulus as housing,” commented Soper. “As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. Predictably, the regions benefiting most from this renewed interest in home ownership are those with lower average house prices and strong economic confidence, such as Winnipeg and parts of Atlantic Canada.”
Soper added, “Our forecast is built upon an expectation that interest rates will ease upward before the year’s end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market. Further, we expect to see an increasing number of homes listed for sale as the year progresses – as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home.”
REGIONAL MARKET SUMMARIES
Halifax saw varied gains across all surveyed housing types in comparison to fourth quarter 2008. Notably, more affordable homes posted the highest price increases due to the influx of workers returning from Western Canada.
Montreal saw strong gains this quarter as year-over-year price levels rose across all three housing types surveyed. Recent increases in demand have resulted in lower than normal inventory levels. Inventory levels are expected in increase in 2010. Continued demand is expected to result in moderate price levels.
House price levels in Ottawa are moderately higher this quarter compared to fourth quarter 2008 across all housing types surveyed. Fourth quarter sales activity did not slow as expected, and the demand has resulted in higher incidences of sellers receiving multiple offers, an unusual occurrence in end of year activity for this region. While inventory levels are low and there is competition among home buyers, this may abate as the government eases economic stimulus in 2010.
The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher-priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.
Winnipeg saw some of Canada’s largest home price increases this quarter. More than one third of homes sold in the region went for above their asking price driven largely by first time buyer activity. This strong growth is expected to continue well into 2010.
Inventory levels in Regina are low, as much as thirty per cent lower than expected for this time of year; this situation should be corrected in the spring of 2010. House prices should continue to increase into 2010, driven by labour force growth in the construction industry.
Price levels in Calgary remain constant as the market is correcting from the record growth seen in the middle of the previous decade. Inventory levels are one quarter the levels seen in 2008, and the reduction in choice has delayed purchases. Activity and price levels are expected to increase modestly in 2010.
House price levels in Edmonton are also still correcting from the 2005 to 2007 boom. Low inventory levels have provided some price support, and activity is expected to increase in the spring of 2010.
Vancouver saw significant gains in price levels, with average increases of approximately ten per cent across the housing types surveyed. Inventory levels are beginning to decrease, and there has been an increase in sales involving multiple offers. Sales activity may drop off due to the city’s focus on the Olympics in the first quarter, but the market is expected to be robust for the remainder of the year.
Royal LePage’s quarterly House Price Survey (Q4 2009) shows the annual change of prices for key housing segments in select national markets. Click here to view the chart (.PDF).
The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter. A printable version of the fourth quarter 2009 survey will be available online on February 5th, 2010.
Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada’s leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women’s shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol “BRE.UN.”
For more information visit www.royallepage.ca.
For further information, please contact:
Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783
David Kaiser
Senior Vice President
Fleishman-Hillard Canada
416-645-3682
Canadian Housing Trends - 2010 Royal LePage Market Survey Forecast (.PDF)
Royal LePage Q4 2009 House Price Survey (.PDF)
Royal LePage Q4 2009 House Price Survey - Map Format (.PDF)
Printable version of this release (.PDF)
Demand and supply finding balance in the second half of the year
TORONTO, January 7, 2010 – Canada’s residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today’s Royal LePage House Price Survey and Market Survey Forecast. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement of interest rates, together with an improvement in listings supply as confidence improves, are expected to bring the market back into balance in the second half of the year, when home price increases are expected to moderate.
“The Canadian real estate market enters 2010 with considerable momentum from a unusually strong finish to the previous year, said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010.”
In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. The average price of detached bungalows rose to $315,055 (up 6.0%), the price of standard two-storey homes rose to $353,026 (up 5.2%), and the price of a standard condominium rose to $205, 756 (up 6.4%). The first two quarters of 2009 saw significant year-over-year price declines across the housing types surveyed and the third quarter provided the first signs saw a strong rebound in Canadian home values.
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.
“No other sector of the economy has been as highly affected by economic stimulus as housing,” commented Soper. “As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. Predictably, the regions benefiting most from this renewed interest in home ownership are those with lower average house prices and strong economic confidence, such as Winnipeg and parts of Atlantic Canada.”
Soper added, “Our forecast is built upon an expectation that interest rates will ease upward before the year’s end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market. Further, we expect to see an increasing number of homes listed for sale as the year progresses – as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home.”
REGIONAL MARKET SUMMARIES
Halifax saw varied gains across all surveyed housing types in comparison to fourth quarter 2008. Notably, more affordable homes posted the highest price increases due to the influx of workers returning from Western Canada.
Montreal saw strong gains this quarter as year-over-year price levels rose across all three housing types surveyed. Recent increases in demand have resulted in lower than normal inventory levels. Inventory levels are expected in increase in 2010. Continued demand is expected to result in moderate price levels.
House price levels in Ottawa are moderately higher this quarter compared to fourth quarter 2008 across all housing types surveyed. Fourth quarter sales activity did not slow as expected, and the demand has resulted in higher incidences of sellers receiving multiple offers, an unusual occurrence in end of year activity for this region. While inventory levels are low and there is competition among home buyers, this may abate as the government eases economic stimulus in 2010.
The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher-priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.
Winnipeg saw some of Canada’s largest home price increases this quarter. More than one third of homes sold in the region went for above their asking price driven largely by first time buyer activity. This strong growth is expected to continue well into 2010.
Inventory levels in Regina are low, as much as thirty per cent lower than expected for this time of year; this situation should be corrected in the spring of 2010. House prices should continue to increase into 2010, driven by labour force growth in the construction industry.
Price levels in Calgary remain constant as the market is correcting from the record growth seen in the middle of the previous decade. Inventory levels are one quarter the levels seen in 2008, and the reduction in choice has delayed purchases. Activity and price levels are expected to increase modestly in 2010.
House price levels in Edmonton are also still correcting from the 2005 to 2007 boom. Low inventory levels have provided some price support, and activity is expected to increase in the spring of 2010.
Vancouver saw significant gains in price levels, with average increases of approximately ten per cent across the housing types surveyed. Inventory levels are beginning to decrease, and there has been an increase in sales involving multiple offers. Sales activity may drop off due to the city’s focus on the Olympics in the first quarter, but the market is expected to be robust for the remainder of the year.
Royal LePage’s quarterly House Price Survey (Q4 2009) shows the annual change of prices for key housing segments in select national markets. Click here to view the chart (.PDF).
The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter. A printable version of the fourth quarter 2009 survey will be available online on February 5th, 2010.
Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.
About Royal LePage
Royal LePage is Canada’s leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women’s shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol “BRE.UN.”
For more information visit www.royallepage.ca.
For further information, please contact:
Tammy Gilmer
Director, Public Relations and National Communications
Royal LePage Real Estate Services
416-510-5783
David Kaiser
Senior Vice President
Fleishman-Hillard Canada
416-645-3682
Canadian Housing Trends - 2010 Royal LePage Market Survey Forecast (.PDF)
Royal LePage Q4 2009 House Price Survey (.PDF)
Royal LePage Q4 2009 House Price Survey - Map Format (.PDF)
Printable version of this release (.PDF)
Wednesday, January 06, 2010
Real Estate Board News-
President’s Pen: Condo or freehold – what’s right for you?
A weekly President’s Pen article appears in some editions of the EMC community newspapers, under the byline of the current Board President. Here is the latest article:
Anyone who’s ever owned a home will know what those two terms up there in the headline mean. Condominiums include any property, regardless of style, which is registered as a condominium. Freehold properties are those which do NOT have a condominium corporation associated with them. Each property type has its own advantages, and can be the ideal choice for a homeowner, depending on your lifestyle, needs and personality.
Condos, like freehold properties, come in all shapes and sizes, not just apartments: you can find one with a great yard for gardening, an entertainment-sized living room, or extra bedrooms for the grandkids. The main difference between a condo and a freehold property is that with a freehold, the title holder generally owns the property inside and out, including the roof, foundation, and land that the property stands on. With a condo, generally the title holder owns only the interior of his or her unit, as well as a share of any common areas and elements that exist within the corporation description.
Condos generally have a monthly fee associated with them that pays for the upkeep of the common areas, elements and insurance, while freeholds do not. Before you purchase a condo, be sure to investigate what exactly is covered by its fees and investigate the financial health of the Condominium Corporation, as this can differ significantly among condo corporations.
A condo corporation also has the right to create and enforce by-laws (although they must first be approved by the condo owners) governing such issues as pets, noise, and alteration of the common elements.
Condos are great for busy people: if you travel frequently and hate home maintenance (or are simply unable to do it), owning a condo means you may never need to replace a window, shovel snow, mow the lawn or nail down loose shingles. Condos can also be cost-effective for those on a tight budget: they often sell for a lower price than freehold units, and the incremental method of paying for regular maintenance through condo fees is far easier on the pocketbook than coming up with hundreds or even thousands of dollars at once for a maintenance issue.
On the other hand, freeholds are preferred by many people, for a wide variety of reasons. Some people love to spend their weekends working on improving their home, creating gorgeous landscaping, or tackling a “fixer-upper” property. Then there are those who simply don’t want or need the services (from snow removal and grass cutting to fitness rooms and guest suites) that a condo corporation may provide. Freehold owners can do pretty much whatever they want to their home, within the boundaries of zoning and building code requirements. They also have more control over their maintenance expenses, by shoveling their own snow or mowing the lawn themselves, for example.
Whatever type of property you prefer, an experienced real estate professional can help you find the right one for your needs and wants! Check out www.OttawaRealEstate.org for an online roster of Ottawa Real Estate Board members, who would be pleased to help you start your search for a new home.
To view archived articles, click on the Newsletters, Guide & Useful Articles button on Ottawa’s REALTOR Link® home page. From the blue left-hand menu, click on Useful Articles, and you will see a list of the last ten articles. Click “more” to see older articles.
The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the (date) issue of the EMC community newspapers. The date of publication appears in the file name of the article.
A weekly President’s Pen article appears in some editions of the EMC community newspapers, under the byline of the current Board President. Here is the latest article:
Anyone who’s ever owned a home will know what those two terms up there in the headline mean. Condominiums include any property, regardless of style, which is registered as a condominium. Freehold properties are those which do NOT have a condominium corporation associated with them. Each property type has its own advantages, and can be the ideal choice for a homeowner, depending on your lifestyle, needs and personality.
Condos, like freehold properties, come in all shapes and sizes, not just apartments: you can find one with a great yard for gardening, an entertainment-sized living room, or extra bedrooms for the grandkids. The main difference between a condo and a freehold property is that with a freehold, the title holder generally owns the property inside and out, including the roof, foundation, and land that the property stands on. With a condo, generally the title holder owns only the interior of his or her unit, as well as a share of any common areas and elements that exist within the corporation description.
Condos generally have a monthly fee associated with them that pays for the upkeep of the common areas, elements and insurance, while freeholds do not. Before you purchase a condo, be sure to investigate what exactly is covered by its fees and investigate the financial health of the Condominium Corporation, as this can differ significantly among condo corporations.
A condo corporation also has the right to create and enforce by-laws (although they must first be approved by the condo owners) governing such issues as pets, noise, and alteration of the common elements.
Condos are great for busy people: if you travel frequently and hate home maintenance (or are simply unable to do it), owning a condo means you may never need to replace a window, shovel snow, mow the lawn or nail down loose shingles. Condos can also be cost-effective for those on a tight budget: they often sell for a lower price than freehold units, and the incremental method of paying for regular maintenance through condo fees is far easier on the pocketbook than coming up with hundreds or even thousands of dollars at once for a maintenance issue.
On the other hand, freeholds are preferred by many people, for a wide variety of reasons. Some people love to spend their weekends working on improving their home, creating gorgeous landscaping, or tackling a “fixer-upper” property. Then there are those who simply don’t want or need the services (from snow removal and grass cutting to fitness rooms and guest suites) that a condo corporation may provide. Freehold owners can do pretty much whatever they want to their home, within the boundaries of zoning and building code requirements. They also have more control over their maintenance expenses, by shoveling their own snow or mowing the lawn themselves, for example.
Whatever type of property you prefer, an experienced real estate professional can help you find the right one for your needs and wants! Check out www.OttawaRealEstate.org for an online roster of Ottawa Real Estate Board members, who would be pleased to help you start your search for a new home.
To view archived articles, click on the Newsletters, Guide & Useful Articles button on Ottawa’s REALTOR Link® home page. From the blue left-hand menu, click on Useful Articles, and you will see a list of the last ten articles. Click “more” to see older articles.
The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the (date) issue of the EMC community newspapers. The date of publication appears in the file name of the article.
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