Third Record-Setting Month for Ottawa Resales
Members of the Ottawa Real Estate Board (OREB) sold 1895 residential units in June through the Board's Multiple Listing Service® system compared with 1685 sold in June 2008, an increase of 12.5 percent. Listing inventory is at a very low level, which has led to competitive bidding wars on many properties.
"This is the third consecutive record-setting month this year and the fourth month where sales exceeded the previous year's sales," said OREB's President. "Year-to-date sales as of the end of June are up one percent over the same time period in 2008. We have seen a strong recovery from the slow start to this year."
The average price of residential properties, including condominiums, sold in June was $306,924, an increase of 3.0 percent over June 2008. The average price for a condominium was $236,830, an increase of 8.3 percent over June 2008. The average price of a residential property was $326,761, an increase of 2.5 percent over June 2008.
Source: OREB
Recreational Properties
Owning a cottage or other recreational property is something many of us dream about. In fact, a recent report by a major real estate company in Canada showed that demand for recreational properties (such as cottages and ski chalets) has nearly doubled in the past year among Generation X buyers. One reason given for the increased demand was that generation’s desire for time spent with family and away from the demands of work. Owning a recreational property can be a fantastic way to get in some rest and relaxation – but it’s important to remember that buying, owning and maintaining that property comes with its own unique challenges. Working with a real estate professional who has experience with recreational homes and land is the best way to ensure smooth sailing (or skiing!).
If you’re hoping to purchase a waterfront property, one of the biggest things to worry about is all that water ending up inside the house, rather than beside it. An experienced home inspector familiar with waterfront properties can help assess the property’s risk of flooding and let you know how to mitigate your risk.
Also, make sure you investigate the type of access to the water you will have based on your land title. A portion of the waterfront may be part of your title, or you may simply have access to it as part of your property rights. Is the beach private or public? Knowing ahead of time can save you the shock of finding a horde of sunbathers in front of your cottage one day in June!
Making physical changes to a waterfront property can require jumping through a few extra hoops. You may need permission from local conservation authorities or Parks Canada before developing a waterfront property. These bodies regulate construction in environmentally sensitive areas, to protect wetlands, fish and animal habitats, and natural shorelines. Their job is to ensure that the natural beauty and environment remain intact for the future enjoyment of all. There can be steep fines associated with altering waterfront property without the proper approvals.
If you’re more of a winter sports type, a chalet or condominium close to ski hills or trails might be your ideal. Ski-resort condominiums have obvious advantages – close to the hill, low-maintenance, and part of an established community full of like-minded people. If you’re more of a wilderness type, with snowshoes and cross-country trails in mind, a stand-alone chalet property might be your dream. Some things to keep in mind: is the land around the property open to recreational use (skiing, snowmobiling, etc) or is it protected for conservation? Are there adequate services nearby for your family’s needs? Are you willing to do outdoor maintenance during the warmer months?
Buying a recreational property can provide tremendous enjoyment for you and your family for years to come, but it’s a big step and one that can be even more confusing than buying your first home! Ease your mind - talk to a real estate professional who regularly works with recreational property, and let them help you make your summer or winter dreams come true.
Source: OREB/The President's Pen
Green – Clean Floors
You lie on them, your kids play on them, but floors are one of your home's dirtiest surfaces. These three green ideas are the ones experts say work best (without harsh chemicals) – so you can save on cleaning products and save the planet.
Carpets
Just have your family kick off their shoes at the door. This simple switch immediately eliminates almost all of the dirt, mould, germs and pesticides that get tracked into your house. Since this outdoor grime accounts for 80% of the dirt that settles into carpets, you'll need to vacuum and shampoo much less frequently, saving time and money.
Wood and laminate floors.
A damp cloth is just as effective on wood floors as a more expensive type of cleaner and safer for the environment too. For laminates simply mix one cup white vinegar into one gallon of warm water and mop. Why does it work? The acetic acid in vinegar cuts through the grease and grime leaving you with laminates that shine.
Tile and linoleum floors.
Disinfect them with this green solution: Mix two cups water with a squirt of liquid soap and 20 drops of tea tree oil (found at health food stores). The soap lifts dirt, while the tea tree oil is a natural antiseptic that kills germs, so your kitchen and bathroom floors are sparkling and safe.
Source: Pillar to Post
A Home for Now – and for later
The 2006 census reported that one out of every seven Canadian citizens is now a senior (aged 65 and older). That’s over 4 million Canadians. Many of those Canadians, as well as those in the age group 55-64, are homeowners. The needs of those homeowners are very likely to change as they age. If the home they currently live in does not meet their physical needs and limitations, they have two options available to them: move to a more accessible home, or retrofit their existing home to meet their current needs. But rather than waiting until they begin to have issues of mobility and accessibility, many homeowners are now choosing to update their homes earlier in life – or to choose newly built homes that they can grow old in comfortably.
If you plan to live in your current home, independently, for as long as you are able, and your home was not specifically designed for accessibility, there are some excellent modifications that can be made by a skilled tradesperson. Many renovation companies and contractors now specialize in these types of retrofits and adjustments, known as "barrier-free" living. Examples include widening doorways to 32 inches, in order to accommodate wheelchairs; lowering countertops (or installing counters at varying heights) and light switches for easier access while seated; switching out a bathtub for a walk-in or roll-in shower stall; swapping out door knobs for levered door handles, which are easier for people with arthritis to open and close; and installing ramps in place of steps for access from the outdoors. With clever design, none of these modifications have to look obvious or added-on.
Barrier-free living also ties in to a concept known as "visitability", meaning that someone with limited mobility could visit your home and be able to move around with ease and use a washroom. The three basic requirements of a visitable home are: at least one entrance that has no steps and is accessible from a main street; wider doorways throughout the main floor; and at least a half bath on the main floor (with a wider doorway). As the population ages, even younger homeowners may find that many of their visitors (such as family members, friends, and colleagues) may experience limited mobility and require easier access. These simple adjustments will help all visitors to your home feel safe and welcome.
Some home builders already incorporate barrier-free and visitability features into their homes, so if you’re purchasing a new home, ask the builder about these options. Even if you don’t plan to live in the home long enough to need those features yourselves, they make a great selling point upon resale, and you never know what future needs your guests may have. If you’re searching for a resale home that incorporates barrier-free features, ask your REALTOR® for help. He or she can set accessibility as one of your search criteria on the MLS® system to help find you a suitable home.
Planning for your future is always a smart idea, and incorporating these simple design features will put you in a good position when your housing requirements change.
Source: OREB
Pricing Your Home in Today’s Market
REALTORS® must often deal with the unrealistic expectations of a seller. This is even more often the case in a changing market. Buyers react much more quickly to market conditions than do sellers, and as a result we have many properties on the market and coming onto the market at unrealistic prices. Many of these properties will not sell. A seller’s unrealistic pricing is often caused by inexperience or the absence of REALTOR® representation, believing improvements are worth more than they really are, no knowledge of the real estate market, ignoring current competition, or needing a certain sales price based on personal expenses.
"Market Value" is the amount estimated by a professional, for which a property should sell for, in the present marketplace, given a willing buyer and a willing seller in an arm’s length transaction, and after a reasonable amount of time and proper marketing. Market Value is not determined by:
- the price you paid for the home plus improvements and real estate fees;
- how much your friend, family member, neighbour or personal trainer thinks your house is worth … unless they are willing to buy it from you at that price;
- what you paid for the home plus a needed or historical rate of appreciation;
- ... and market value isn’t more than what your neighbour’s house sold for because you like your house better.
A property that is priced right, presents well and is marketed properly will sell, no matter what the market conditions may be. Sellers must be objective and try to view their home through the eyes of a potential buyer. This is very difficult to do and is why an experienced REALTOR® is such an important ally.
A pricing strategy that can be effective in today’s market is "ask less… to get more". Most sellers tend to inflate their asking price by 5-10% above the market value to allow room to negotiate. This is unnecessary. Buyers working with a REALTOR® have the same information that sellers do, and will know the market value of a property. On average, properties sell on the MLS® system for 2% below the asking price. By setting your asking price at 2% (or less) above market value, your property will stand out from the competition as being better value. This should result in quicker and better offers.
Sometimes it is difficult for a professional to determine an accurate market value. There may not be any good "comparables" or the market may be changing in unknown ways. It is best to look at your asking price as a starting point. Don’t lock this number into your expectations.
A house sitting on the market for a long time creates all kinds of marketing challenges. More ads and marketing will not help an unrealistically priced house sell. Lower your price if necessary before it gets stale.
Source: OREB
Plumbing Tips
An ounce of prevention is worth a pound of cure when it comes to plumbing. Here are a few common questions with some simple steps to follow for a better flowing plumbing system.
Can you pour fats and oils down the drain?
Many don't realize that when grease cools and solidifies, it sticks to the inside of pipes. Over time, it will build up and block the entire pipe. Rather than dumping grease into your plumbing system, pour it into a heat resistant container, let it solidify and then dispose of it in the garbage.
What are some tips for keeping drains from becoming clogged?
To keep your drains in top working order, pour a cup of baking soda followed by a cup of vinegar down the drains on a monthly basis. Using baking soda and vinegar is a natural way to keep your drains clear and free of hair and excess build up – it's also environmentally friendly.
If I fixed a leaky tap, approximately how much could be saved on the water bill?
A dripping tap can waste up to 150 gallons of water per day, which is the equivalent of about fifteen additional dollars on the water bill per month. To avoid wasting this resource, make sure you turn taps off all the way or get a plumber in to fix any leaky tap. Investing in plumbing maintenance now will help save money in the long run.
Source: Pillar to Post
New Provincial Legislation Will Cost Homeowners
In its most recent budget, the Ontario government announced that it will create a Harmonized Sales Tax (HST) in this province effective in July of next year. The government is promoting this tax as being good for Ontario businesses. What may be less clear is that HST is bad news for Ontarians who are hoping to purchase a home.
Harmonizing the sales tax will add 8% in provincial sales taxes to a variety of home-related services, including legal fees, real estate commissions, mortgage insurance premiums, title insurance and home inspections, all of which are currently exempt from PST. The Ontario Real Estate Association (OREA) has done some math, and the results aren’t pretty. These new taxes could add up to thousands of dollars in extra closing costs for consumers.
On average, HST will mean $1731 in new taxes for Ontarians who purchase a resale home (based on the 2008 average MLS® price of $302,354). Across the province, HST adds up to more than $300 million annually in new taxes to resale home transactions. Government should help people to achieve home ownership, not create more barriers for homebuyers to overcome. The Ottawa Real Estate Board supports OREA’s campaign to ask the provincial government to create a HST rebate program for resale housing, just as it has for new homes. If you’re considering a home purchase in the future, I encourage you to write to your MPP and let him or her know how you feel. OREA has prepared a sample letter that you can use.
Visit http://www.orea.com/consumercfa to voice your opinion.
The HST isn’t the only challenge currently facing Ontario’s resale housing market. The government’s proposed Green Energy Act includes a provision to make it mandatory for homeowners to provide a home energy audit report to buyers. REALTORS® have many concerns about this proposal. First, mandatory home energy audit reports will have serious cost implications for home sellers; those with less-than-ideal energy audit ratings will face pressure from buyers to spend thousands of dollars to improve the energy rating of their home, or to lower their asking price.
Seniors will also be placed at a disadvantage by this legislation. Many of Ottawa’s seniors hope to rely on the equity they have built in their homes to help finance their retirement. Mandatory home energy audits will force senior homeowners to either complete energy retrofits at a tremendous cost to their retirement savings, or lower the asking price of their home, in order to compete with newer, more efficient ones.
Finally, it makes little sense to require sellers to provide home energy audits when most buyers obtain a home inspection that covers many of the same areas, including heating and electrical systems, windows and insulation.
Ottawa REALTORS® support home energy efficiency: it’s good for the environment and it saves homeowners money. The provincial government’s existing, voluntary home energy retrofit rebate program is one that Ottawa REALTORS® are pleased to promote. However, mandatory home energy audits will be detrimental to the resale housing market and will impose unnecessary costs on home sellers. If you agree, visit http://www.orea.com/consumermhea to send your MPP a letter expressing your opposition to mandatory home energy audits.
Source: OREB |
