On this day after Remembrance Day, I would like to start off by thanking the many of you receiving this newsletter who are either serving or retired members of the Canadian Armed Forces; I was lucky to work with many of you during my time at National Defence and I am thinking of you as I write this today, grateful that you are here to read it and hopeful that you do not carry too much of a burden on our behalf…
It’s November! I can tell because the sun is no where to be found, but how did that happen!? I could have sworn it was just July… Let’s get caught up shall we?
- While fewer multiple offer situations were reported this month, Sellers often received asking price or very close to it and cumulative days on market tightened significantly since last year.
- Residential listings sold almost 30% than this time last year, and condo units sold just over 10% faster than last year.
- We saw no slowdown in the condo market in September! Sales have been increasing in this property class since February, with the average increase per month coming in at 25.5 and the low inventory and the late summer weather certainly contributed to increased buyer traffic.
- The average sale price of a residential-class property sold in September in the Ottawa area was $416,464, an increase of 8.2% over September 2016.
- The average sale price for a condominium-class property was $261,548, an increase of 3.9% over September 2016.
This chilly weather (yuck!) has not chilled the Ottawa real estate market!
1,243 residential properties in October through the MLS, compared with 1,214 in October 2016, an increase of 2.3%. October’s sales included 261 in the condominium property class, and 982 in the residential property class.
Here’s what that all looks like in pretty chart form! (click to enlarge)
Condominium sales continue to drive the overall residential sales market, with a year to date increase of 21.4% over the same time period last year! Whhhhhat? This fall frenzy (let’s be honest, I just wanted to say fall frenzy) could very well be fueled by the impending tightening of mortgage regulations to come into effect January 1st ***For more about this continue on below
Properties continue to sell much faster in comparison to this time last year with the average days on market for residential properties down 17.7% from 55 to 45 days – I have certainly noticed this trend… as someone who works with a lot of first time buyer, it has been a struggle to get a foot in the door of a hot new listing before it is sold out from under us!
That being said, prices in the Ottawa marker, while on the upward trend, remain very steady – the average sale price of a residential-class property sold in October in the Ottawa area was $425,256, an increase of 7.7% over October 2016. The average sale price for a condominium-class property was $269,604, an increase of 6.7% over October 2016.
Photo Break! aka Urban Design Awards
That was way too much reading… time for a photo break! Below is a collage of some of the amazing winners of this year’s Urban Design Awards, a biennial awards program that celebrates projects built in the City of Ottawa that achieve urban design excellence. I love looking through these and reading about the exciting, innovative development and public space design going on in our city! Follow the link for the full list of winners, their photos and design details.
New Rules for Mortgages
Last month, the Office of the Superintendent of Financial Institutions (OSFI) announced plans to implement new mortgage regulations that will reduce purchasing power on new and refinanced mortgages:
- The new qualifying rules will come into effect January 1st 2018 requiring all conventional mortgages to qualify at the greater of; a rate 2% higher than the contract rate, or the qualifying rate (currently 4.89%) .
- The new rules will impact mortgage affordability by approximately 20%.
- An average family income of $100,000 translates into approximately a $500,000.00 mortgage approval at current rates. With the new rules, the average family’s ability to qualify for a mortgage will be reduced to approximately $400,000.00.