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The Definitive Guide to the Over-55

2012-05-07T15:12:57Z

The Definitive Guide to the Over-55 Market 1 Volume 1 Understanding the Market
Older Canadians are a growing demographic group and have unique needs and preferences. This Guide targets housing developers and non-profit groups interested in developing or sponsoring housing that is specifically geared to older Canadians.

It is being published on-line in five volumes, each of which will cover a broad topic area: 1. understanding the market, 2. conducting market analysis, 3. planning a project, 4. designing a project, & 5. deciding which services and amenities to offer and how to offer them. Volume 1 — Understanding the Market provides a broad overview of the seniors market in Canada and of trends in seniors' housing arrangements, incomes, and retirement. The other four volumes are expected to be completed in 2012.

April sales sailing along through spring

2012-05-04T02:37:33Z

Ottawa Real Estate Board, May 3, 2012 :Members of the Ottawa Real Estate Board sold 1,568 residential properties in April through the Board’s Multiple Listing Service® system, compared with 1,530 in April 2011, an increase of 2.5%. April’s sales included 300 in the condominium property class, and 1,268 in the residential property class. MORE STATS

“Sales in April indicate a steady Ottawa market as we sail through spring,” remarks Ansel Clarke, President of the Ottawa Real Estate Board. “Re-sale housing inventory is up by 6.9% since last year, and interest rates continue to be low, indicating that Ottawa remains in a healthy, stable market.”

The average sale price of residential properties, including condominiums, sold in April in the Ottawa area was $364,077, an increase of 3.7% over April 2011. The average sale price for a condominium-class property was $272,851, an increase of 6.7% over April 2011. The average sale price of a residential-class property was $385,660, an increase of 2.6% over April 2011.

The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of over 2,800 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Ontario and Canadian Real Estate Associations. The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).

BOC Hints of Interest Rate Hikes

2012-05-04T02:35:48Z

Even though the Bank of Canada has not set anything in stone, it’s wise to consider a future with increased interest rates. A hike means mortgage rates; lines of credit and other forms of borrowing money will get more expensive.

That will deter some people from borrowing, and might cripple some segments of the population that have already borrowed too much. Debt that is affordable at today’s rates may be unsustainable at tomorrows.

For example, some variable rate mortgages are set up so that payment amounts increase when interest rates go up. This can mean that your cash flow takes a surprise hit.

But before you start worrying about where you will make the corresponding cut in your current spending to offset this increase, it’s worth noting that not all variable rate mortgages will automatically increase your payments if rates rise.

As rates rise, an ARM will see your payments increase, but a true VRM will see your payment stay the same with the caveat that less of your payment goes towards paying down principal and more goes to paying interest. In other words, the amortization or your mortgage would increase, not the payment.

Based on the current forecast, if someone is shopping for a brand-new mortgage and won’t need to break it for five years, then five-year fixed rates (currently 3.29%) have the mathematical edge. If you’re conservative a well-priced 10-year term (currently 3.89%) is also worth a look. Remember that with most fixed rate mortgages are both portable and assumable.

The Bank of Canada is being fairly clear: The economy is getting better so low rates, an incentive to borrow and spend money, could rise soon. It was conditional enough to still be a warning shot, but one close enough to make you want to duck.

If you have significant debts, now is the time to try to get them under control. Over-spenders have been living on borrowed time, let alone money, for years. Rising rates may not cause a housing correction or a recession, but here’s a prediction you can bank on: The increase in interest payments for some Canadians will make rising gas prices seem trivial.

The Ministry of Finance Trains its Sights on Hot Housing Market

2012-05-04T02:32:35Z

Ottawa is so concerned about Canada’s booming housing market that it is considering further changes at Canada Mortgage and Housing Corp.

Just a day after the federal government tabled legislation that would place the mortgage insurer under stricter oversight, Finance Minister Jim Flaherty said that governance changes at CMHC are not out of the question. Anxiety over real estate was heightened by the recent lending practices of Canadian banks, which bore a troubling resemblance to those that caused the U.S. mortgage crisis, Mr. Flaherty said. He said he had conversations with individual bank CEOs to tell them that ultra-low mortgage rates were irresponsible.

While he does not rule out decreasing the maximum length of insured mortgages or raising the minimum down-payment in the future, he said he is balancing the need to keep the housing market in check with the need to keep the construction industry humming. More than 1.2-million Canadians work in that industry, according to Statistics Canada.

Spring has sprung an increase in residential sales

2012-04-13T21:01:05Z

Ottawa, April 4, 2012: Members of the Ottawa Real Estate Board sold 1,396 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,240 in March 2011, an increase of 12.6%. The five-year average for March sales is 1,276.March’s sales included 277 in the condominium property class, and 1,119 in the residential property class.

“Along with the increasing temperatures and the arrival of spring, March saw a substantial increase in residential sales,” notes Ansel Clarke, President of the Ottawa Real Estate Board.
“With interest rates continuing to be low, it is no surprise that the market remains healthy and balanced.”

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $353,684, an increase of 2.1% over March 2011. The average sale price of a residential-class property was $375,065, a slight decrease of 0.2% cent over March 2011. The average sale price for a condominium-class property was $267,308, an increase of 5.7% over March 2011.

The Ottawa Real Estate Board is an industry association of over 2,800 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Ontario and Canadian Real Estate Associations.

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).

Spring has sprung an increase in residential sales

2012-04-13T21:01:05Z

Rental Market in Ottawa

2012-03-08T17:38:49Z

CMHC Interactive Data Table

February residential sales up of from 2011

2012-03-08T17:31:25Z

Ottawa Real Estate Board
March 6, 2012:
Members of the Ottawa Real Estate Board sold 1,009 residential properties in February through the Board’s Multiple Listing Service® system compared with 940 in February 2011, an increase of 7.3%. The five-year average for February sales is 949. February’s sales included 244 in the condominium property class, and 765 in the residential property class.

This month’s results indicate a steady incline in resale housing in the Ottawa area,” said Past President Joanne Tibbles. “The number of sales increased since January, and the inventory of properties for sale is back to a normal rate – still offering plenty of options for buyers, and this indicates a healthy balanced market as we head into spring.”

The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $350,046, an increase of 3.2% over February 2011.

The average sale price for a condominium-class property was $273,464, an increase of 4.6% over February 2011. The average sale price of a residential-class property $374,472, an increase of 3.4% over February 2011. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of over 2,790 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Ontario and Canadian Real Estate Associations.

Housing Now

2012-03-08T17:14:37Z

Canada Mortgage and Housing Report for Ottawa

Low Interest Rates and Steady Housing Market Predicted Through 2012, 2013

2012-02-29T03:13:27Z

Canada Mortgage and Housing Corp. is predicting the Canadian housing market will remain fairly stable this year and next, with little change from 2011 in prices, new home construction and sales of existing homes. The national housing agency said Monday in its first-quarter 2012 report that the foreseen stability stems from an economy that appears set to expand at only a moderate pace over the next two years.

The Bank of Canada's key overnight rate — which affects mortgages tied to prime rates — will likely remain low until mid-2013, which should also act to keep activity on an even keel. "With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011," CMHC deputy economist Mathieu Laberge said in a statement. Low mortgage rates and high demand have driven housing prices sharply higher in large urban centres such as Toronto and Vancouver, leading many experts to warn that a housing bubble could burst when rates finally do rise.

Despite those warnings and alarms from top government officials that Canadians are taking on too much debt overall, the housing market has seen little change over the past few years, with price growth slowing but not retreating in most areas. The CMHC says it expects the average house price in Canada to hit $368,900 for 2012, with a projected range between $330,000 and $410,000, according to data from the Canadian Real Estate Association's MLS service. For 2013, that number rises to $379,000, with a range between $335,000 and $430,000.

"The moderate increases in the average MLS price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013," CMHC said. Housing starts are expected to be around 190,000 units this year and 193,800 units in 2013, while existing home sales are expected at about 457,300 units in 2012 and moving a little higher to 468,200 units in 2013. The CMHC predicted that housing starts will be in the range of 164,000 to 212,700 units in 2012, and between 168,900 to 219,300 units in 2013. Existing home sales are expected in a range from 406,000 to 504,500 units in 2012, rising to 417,600 to 517,400 units in 2013. Western Canada is expected to see strong growth in new housing starts, with Alberta leading the way with a 13.2 per cent increase. However, the agency said it expects housing starts in Saskatchewan to contract by about 2.7 per cent in 2013. In Eastern Canada, all provinces are expected to see a contraction in housing starts for 2012, with "modest growth" returning to Quebec and Ontario in 2013.

The agency noted that the fate of an economic recovery in the United States, Canada's largest single trading partner, could have an immediate effect on Canada's housing industry — "Some upsides include the potential that the U.S. could recover more quickly than anticipated, which would be positive for U.S. employment and economic growth," CMHC said. "In turn, this could boost employment growth in Canada and thus lead to a stronger than expected housing market." Conversely, if the U.S. recovery hits a snag and emerging economies see their growth slow while Europe suffers a slowdown, which could lead to slower employment growth in Canada and place a chilling effect on the demand for housing.

Michael Hatch
Mortgage Agent License # M08008114
704-2197 Riverside Drive, Ottawa ON K1H7X3