Shifting to
a More Balanced Market
Members of the Ottawa Real Estate Board (OREB) sold 1020 residential
units through MLS® in September, the most for the month of September
since 2000. The average price of properties sold in September
in the Ottawa area was $224,058. Year to date the average price
is $218,674, up nine per cent over last year.
According to OREB, September was one of the busiest Septembers
on record with the highest monthly average price recorded by
the Board. The market has shifted to a more balanced one, resulting
in good news for both sellers and buyers. While properties
may stay on the market slightly longer, buyers have more of
an opportunity to view without being rushed and sellers can
be assured of more exposure for their property. Buyers and
sellers benefit from a little less pressure and can have a
more satisfying real estate experience.
While the resale market remains strong, new home construction
starts on Ottawa Homes fell 30 percent in September, its lowest
level since 1998, according to CMHC. This shift may be related
to the recent increase in the number of properties for sale
in the resale market.
Strong Track Record for Ottawa Resale
Market
Those who are waiting for a downturn in Ottawa’s real
estate market might wish to consider a review of recent sales
statistics. According to OREB, average sale prices of residential
and condominium units by year for the Ottawa-Carleton Region
have risen every year since 1962, with three exceptions (1994
to 1996). The percentage change in 2002 was the highest recorded
since 1983 & 1984.
Here are the statistics from 1980 to September 2003:
| 1980 |
$62,748 |
1.4 |
| 1981 |
$64,896 |
3.4 |
| 1982 |
$71,080 |
9.5 |
| 1983 |
$86,245 |
21.3 |
| 1984 |
$102,084 |
18.4 |
| 1985 |
$107,306 |
5.1 |
| 1986 |
$111,643 |
4.0 |
| 1987 |
$119,612 |
7.1 |
| 1988 |
$128,434 |
7.4 |
| 1989 |
$137,455 |
7.0 |
| 1990 |
$141,438 |
2.9 |
| 1991 |
$143,361 |
1.4 |
| 1992 |
$143,868 |
0.4 |
| 1993 |
$148,129 |
3.0 |
| 1994 |
$147,543 |
-0.4 |
| 1995 |
$143,193 |
-2.9 |
| 1996 |
$140,513 |
-1.9 |
| 1997 |
$143,873 |
2.4 |
| 1998 |
$143,953 |
0.1 |
| 1999 |
$149,650 |
2.4 |
| 2000 |
$159,511 |
6.6 |
| 2001 |
$175,971 |
10.3 |
| 2002 |
$200,711 |
14.1 |
| 2003* |
$218,674* |
9.0* |
*as of September 2003
By way of comparison, here are the 2002 average sale prices
for some of Canada’s other major markets, as recorded
by the Canadian Real Estate Association (CREA):
| CITY |
AVERAGE SALE PRICE |
PERCENTAGE CHANGE |
| Calgary |
$210,330 |
31.9 |
| Edmonton |
$153,090 |
46.9 |
| Halifax-Dartmouth |
$154,272 |
-5.0 |
| Hamilton-Burlington |
$177,003 |
-2.9 |
| Kitchener-Waterloo |
$187,937 |
-14.2 |
| London / St. Thomas |
$145,740 |
-2.9 |
| Montreal |
$153,564 |
21.2 |
| Outaouais (Gatineau) |
$123,040 |
15.9 |
| Quebec City |
$107,037 |
-21.4 |
| Regina |
$97,342 |
-5.0 |
| Saint John |
$102,202 |
-11.2 |
| Saskatoon |
$113,837 |
27.0 |
| St. Catharines Area |
$161,488 |
-5.7 |
| St. John's |
$127,938 |
21.6 |
| Toronto |
$275,002 |
-1.1 |
| Greater Vancouver |
$296,796 |
4.7 |
| Windor-Essex |
$144,113 |
11.5 |
Changes in the Insurance Industry
The insurance industry is going through a period of rapid
change. Car, house, general liability and professional insurance
premiums are increasing at rates never seen before. Also, some
types of insurance coverage are not being offered in certain
conditions. For example, insurers seem to be particularly concerned
about knob and tube wiring, older or buried oil tanks and 60
amp electrical service.
OREB has just developed a clause for insertion into the Agreement
of Purchase and Sale as a protection to buyers who are concerned
about insurance coverage. In addition, the Ontario Real Estate
Association has produced a number of useful articles on targeted
insurance issues. Please contact me for more information or
for copies of articles.
Interest Rates Expected to Remain Low
According to the banking industry, the rapid pace of the Canadian
dollar is weighing on Canada's export-oriented industries,
and is set to continue to do so through the second half of
2003 and the early part of 2004. The impact of SARS, mad-cow
and the Ontario blackout have also taken a bite out of the
economy. As a result, economic growth will likely remain sub-par
through the remainder of the year. "Put it all together, and
the message is clear -- interest rates will remain low well
into 2004. This will provide a good dose of support to the
domestic side of the economy."
Near-record low mortgage rates have already made home ownership
highly affordable compared to the cost of renting, and this
has been a boon to housing activity. (Even with the recent
slight increased in mortgage interest rates, the cost of carrying
a $100,000 mortgage is less than $600.00 per month.) Further,
Canada Mortgage and Housing Corporation announced a 15% reduction
in homeowner mortgage loan insurance premiums on July 14. On
a mortgage of $100,000, this represents a reduction of $500.00
based on a five percent down payment. CMHC application fees
did not change.
Source: TD Canada Trust
Nests in the Vents?
How can one prevent birds from building nests in the clothes
dryer vent while maintaining a safe environment in the home?
The most important thing when trying to keep birds out --
while ensuring safety -- is to keep the vent open so that moisture
and lint can be expelled to the outside. Home centres usually
sell caps for the end of dryer vents. These vents keep rodents
and birds out while allowing the dryer to vent properly. One
effective type of cap has louvers that swing open while the
dryer is venting, but close when it shuts off. Other effective
caps have screens.
Like most home components, a dryer vent cap should be checked
once or twice a year and cleaned when needed to ensure safety
and effectiveness.
Source: Inspect Tips by Paul Bouzanis, R.H.I.
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