OTTAWA, 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 per cent.
April’s sales included 300 in the
condominium property class, and
1,268 in the residential property
class. The condominium property
class includes any property,
regardless of style (i.e. detached,
semi-detached, apartment, stacked
etc.), which is registered as a
condominium, as well as properties
which are co-operatives, life leases
and timeshares. The residential
property class includes all other
residential properties.
“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 per cent
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 per cent over
April 2011. The average sale
price for a condominium-class
property was $272,851, an
increase of 6.7 per cent over April
2011. The average sale price of
a residential-class property was
$385,660, an increase of 2.6 per
cent 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.

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 per cent. 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. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“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 per cent over February 2011. The average sale price for a condominium-class property was $273,464, an increase of 4.6 per cent over February 2011. The average sale price of a residential-class property $374,472, an increase of 3.4 per cent 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.

Ottawa, January 5, 2012 :Members of the Ottawa Real Estate Board sold 699 residential properties in December through the Board’s Multiple Listing Service® system compared with 618 in December 2010, an increase of 13.1 per cent. The five-year average for December sales is 611. The total number of homes sold through the Board’s MLS® system in 2011 was 14,412, an increase of 1.7 per cent over 2010. The average price for 2011 was $343,701, an increase of 5.2 per cent over 2010. Of December’s sales, 177 were in the condominium property class, while 522 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties, which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Resale home sales in 2011 were slightly above the five-year average of 14,326, and that’s really the story for the year. The market started off the year quietly, but gained momentum as we headed into spring and summer, losing very little steam during the fall and posting the best November on record, which leaves us with a very solid balance sheet for 2011,” said Past President Joanne Tibbles. “In many ways, it epitomized Ottawa’s real estate market: no dizzying highs, no dramatic lows, just slow and steady growth over the long term,” she added.

The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $332,527, an increase of 2.6 per cent over December 2010. The average sale price for a condominium-class property was $262,514, an increase of 3 per cent over December 2010. The average sale price of a residential-class property was $356,267, an increase of 0.2 per cent over December 2010. 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 2,765 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

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.

Ottawa, September 6, 2011 – Members of the Ottawa Real Estate Board sold 1,329 residential properties in August through the Board’s Multiple Listing Service® system compared with 1,099 in August 2010, an increase of 20.9 per cent. The five-year average for August sales is 1,225.

Of those sales, 285 were in the condominium property class, while 1,044 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties, which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Through the summer, the resale housing market has picked up some momentum and made up for the quiet start to 2011; this year’s unit sales to date are now within a percentage point of the number of homes sold by this time last year. However, we are seeing that homes are taking slightly longer to sell than they did in July,” said Board President. “Interest rates are still low, which continues to motivate many buyers and sellers, but a more balanced market means more properties for buyers to choose from, which often leads to a longer selling time,” she added.

Canadian housing activity remains resilient in the face of mounting global economic uncertainty and the squeeze on household budgets from high food and gas prices. Seasonally adjusted national home sales rose 2.6% m/m in June. The pickup follows several months of moderating activity following the implementation of more restrictive insured mortgage rules in mid-March, which likely brought forward some sales to the early part of the year. Overall, sales volumes are in line with the average of the past decade.
Steady job growth is a major factor supporting housing demand. The economy has generated an average of 32,000 new jobs a month this year, mostly full-time. Equally important, variable and fixed mortgage rates have remained at historically low levels, helping to maintain affordability despite near record home prices.
Sales are being matched by a reasonable supply of new listings in most markets, leading to fairly balanced conditions between buyers and sellers. The national ratio of new listings to sales stood at 1.90 in June, while the months’ supply of active listings was 6.0. This in turn has moderated price increases. The national average home price declined marginally on a month-to-month basis in each of the past three months, but this comes on the heels of a spike in prices in January and February. The early-year run-up was likely inflated by a rush to beat the regulatory changes as well as by a surge in high-end property transactions in Vancouver.
Higher interest rates and a slowing pace of job creation as public sector restraint measures take hold will likely cool housing demand next year. However, given expectations of moderate economic growth and only a gradual rise in interest rates, combined with limited high-risk mortgages, we maintain that the most likely outcome for Canada’s housing market over the next few years is not an abrupt downward correction but rather a period of relatively flat sales and pricing that eventually restores

OTTAWA -The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

As anticipated in the January Monetary Policy Report (MPR), the global economic recovery is becoming more firmly entrenched and is expected to continue at a steady pace.  In the United States, growth is solidifying, although consolidation of household and ultimately government balance sheets will limit the pace of the expansion.  European growth has strengthened, despite ongoing sovereign debt and banking challenges in the periphery.  The disasters that struck Japan in March will severely affect its economic activity in the first half of this year and create short-term disruptions to supply chains in advanced economies.  Robust demand from emerging-market economies is driving the underlying strength in commodity prices, which is being further reinforced by supply shocks arising from recent geopolitical events. These price increases, combined with persistent excess demand conditions in major emerging-market economies, are contributing to the emergence of broader global inflationary pressures.  Despite the significant challenges that weigh on the global outlook, global financial conditions remain very stimulative and investors have become noticeably less risk averse. 

Although recent economic activity in Canada has been stronger than the Bank had anticipated, the profile is largely consistent with the underlying dynamics outlined in the January MPR.  Aggregate demand is rebalancing toward business investment and net exports, and away from government and household expenditures. As in January, the Bank expects business investment to continue to rise rapidly and the growth of consumer spending to evolve broadly in line with that of personal disposable income, although higher terms of trade and wealth are likely to support a slightly stronger profile for household expenditures than previously projected.  In contrast, the improvement in net exports is expected to be further restrained by ongoing competitiveness challenges, which have been reinforced by the recent strength of the Canadian dollar.

Overall, the Bank projects that the economy will expand by 2.9 per cent in 2011 and 2.6 per cent in 2012. Growth in 2013 is expected to equal that of potential output, at 2.1 per cent. The Bank expects that the economy will return to capacity in the middle of 2012, two quarters earlier than had been projected in the January MPR.

While underlying inflation is subdued, a number of temporary factors will boost total CPI inflation to around 3 per cent in the second quarter of 2011 before total CPI inflation converges to the 2 per cent target by the middle of 2012. This short-term volatility reflects the impact of recent sharp increases in energy prices and the ongoing boost from changes in provincial indirect taxes. Core inflation has fallen further in recent months, in part due to temporary factors. It is expected to rise gradually to 2 per cent by the middle of 2012 as excess supply in the economy is slowly absorbed, labour compensation growth stays modest, productivity recovers and inflation expectations remain well-anchored.

The persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of material excess supply in Canada. Any further reduction in monetary policy stimulus would need to be carefully considered. 

Stock markets embraced this week’s rich economic data, but gave up most of their gains on Friday.
• The U.S. economy expanded by 3.2% in the fourth quarter, driven by gains in consumer spending and net
exports.
• The Federal Reserve signaled that it will continue its $600 billion asset purchase program. The Fed is expected
to maintain its current stance until unemployment shows meaningful improvement.
• Fiscal policy will also remain simulative at least over this year, as tax cuts come into effect. However, fiscal
austerity cannot be put off indefinitely. This week, the Congressional Budget Office revised up their deficit
outlook, expecting the deficit to reach 9.8% of GDP in 2011, the second largest since the Second World War.
Canada
• International developments dominated Canadian market activity this week. However, a mix of positive and
negative news has left the S&P/TSX composite index and loonie close to the week’s start.
• Headline Canadian consumer prices rose by 2.4% from year-ago levels in December, slightly below the market
expectation of 2.5%. However, core inflation remained low at 1.5%, which puts no pressure on the Bank of
Canada to raise rates in the near-term.
• Efforts to rein in inflation in emerging markets including India, China, and Brazil may result in slower global
commodity demand growth in 2011. If demand does diminish, this could adversely impact the near-term
performance of the resource-heavy Canadian equity market.

I constantly gather the most up-to-date information on real estate market conditions so my customers can make the best, most informed purchasing and selling decisions. In keeping with our effort to stay informed, I have critiqued a recent seminar given by CMHC (Canadian Mortgage and Housing Corporation) on the outlook for Ottawa real estate in 2011.

The seminar, presented by Sandra Perez Torres, Senior Market Analyst for CMHC, provided a comprehensive picture of current trends and an outlook of what we can expect through the coming year. Here are the key takeaways we’d like to pass on to you from this informative session.
Resale market
Perez Torres said that Ottawa’s diversified economy and high employment levels, along with moderate housing price increases will continue to bolster demand for new homes in 2011. These factors, coupled with a moderate increase in new home listings, will result in a balance between supply and demand.
New Home Market
Housing starts (number of residential building construction projects begun in a given period of time) will stabilize to stay in-line with long term demographic fundamentals next year. And instead of the suburban development boom we’ve seen in the past, the trend will be toward development in higher density areas.

Rental and Condo Market
An aging population, along with a growing immigrant community continued to fuel the condo market this year, which has made for strong demand for condos, and a tight rental market. This trend is expected to continue through 2011.

2011 Outlook
Overall, the housing market will stabilize, according to Perez Torres, while the resale market will see a balance between supply and demand. Higher density construction will be the trend in new housing starts. And an improving economy and higher incomes will trigger higher interest rates.

My Take
Given the resale market conditions, is this a buyer’s market or a seller’s market? It’s neither, or both – depending on how you want to look at it. With a balance between supply and demand, and moderately increasing housing prices, conditions are favorable for both buyers and sellers. Generally speaking, this means that sellers should expect to get a fair price, while buyers should expect to have a good range of choice when they go shopping for a home. The condo market continues to be strong. And with a favorable long-term demographic outlook for rental properties, residential real estate will continue to be a good investment.
If you have any questions about Ottawa real estate trends, or would like to find out more about my services, please contact me at;

Stephen.Lockyear@KWOttawa.ca

Members of the Ottawa Real Estate Board sold 1,042 residential properties in October through the Board’s Multiple Listing Service® system compared with 1,197 in October 2009, a decrease of 12.9 per cent. Year to date, the number of properties sold has declined 2% compared to the same period last year, a record setting year.

Of those sales, 221 were in the condominium property class, while 821 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Six months ago we were in a strong seller’s market, now we have moved into a more balanced market position,” said Immediate Past President Rick Snell. “Some properties are still receiving multiple offers but this is happening much less often than was the case in the spring.”

The average sale price of residential properties, including condominiums, sold in October in the Ottawa area was $340,719, an increase of 6.8 per cent over October 2009. The average sale price for a condominium-class property was $263,292, an increase of 13.4 per cent over October 2009. The average sale price of a residential-class property was $361,560, an increase of 5 per cent over October 2009. 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.

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economic recovery is entering a new phase. In advanced economies, temporary factors supporting growth in 2010 – such as the inventory cycle and pent-up demand – have largely run their course and fiscal stimulus will shift to fiscal consolidation over the projection horizon. While the Bank expects that private demand in advanced economies will become sufficiently entrenched to sustain the recovery, the combination of difficult labour market dynamics and ongoing deleveraging in many advanced economies is expected to moderate the pace of growth relative to prior expectations. These factors will contribute to a weaker-than-projected recovery in the United States in particular. Growth in emerging-market economies is expected to ease to a more sustainable pace as fiscal and monetary
policies are tightened. Heightened tensions in currency markets and related risks associated with global imbalances could result in a more protracted and difficult global recovery.

The economic outlook for Canada has changed. The Bank expects the economic recovery to be more gradual than it had projected in its July Monetary Policy Report, with growth of 3.0 per cent in 2010, 2.3 per cent in 2011, and 2.6 per cent in 2012. This more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending. With housing activity declining markedly as anticipated and household debt considerations becoming more important, the Bank expects household expenditures to decelerate to a pace closer to the rate of income growth over the projection horizon. Overall, the composition of demand in Canada is expected to shift away from government and household expenditures towards business investment and net exports. The strength of net exports will be sensitive to currency movements, the expected recovery in productivity growth, and the prospects for external demand.

Inflation in Canada has been slightly below the Bank’s July projection. The recent moderation in core inflation is consistent with the persistence of significant excess supply and a deceleration in the growth of unit labour costs. The Bank judges that the output gap is slightly larger and that the economy will return to full capacity by the end of 2012 rather than the beginning of that year, as had been anticipated in July. The inflation outlook has been revised down and both total CPI and core inflation are now expected to converge to 2 per cent by the end of 2012, as excess supply in the economy is gradually absorbed and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.

At this time of transition in the global recovery, with a weaker U.S. outlook, constraints beginning to moderate growth in emerging-market economies, and domestic considerations that are expected to slow consumption and housing activity in Canada, any further reduction in monetary policy stimulus would need to be carefully considered.