Ottawa Real Estate News from Ian Campbell April 2019   

 
When existing homeowners decide it’s time to make a move, they sometimes consider turning their old home into a rental property. This month's article offers some helpful advice if you’re facing this difficult dilemma.

There’s also a look at some of the latest gardening trends that are sprouting up as well as a few tips on how to get your bike tuned up for the beautiful spring weather that’s finally here!

Thanks so much for checking out this month's newsletter. Please get in touch if you have any questions or comments regarding the articles, or real estate in general. It'd be great to hear from you!

Regards
Ian Campbell

In this issue...
Ottawa Real Estate Market Update 
A slow March into spring for the Ottawa market.

Members of the Ottawa Real Estate Board sold 1,511 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,654 in March 2018, a decrease of 8.6 per cent.

March’s sales included 1,136 in the residential property class, a drop of 12.4 per cent from a year ago, and 375 in the condominium property class, an increase of 5 per cent from March 2018. The five-year average for March unit sales is 1,402.

“Lack of inventory is responsible for March’s deficiency in residential unit sales,” states Ottawa Real Estate Board’s President, Dwight Delahunt. “This tightness of supply is manifesting in significant reductions in DOMs (days on market) and properties selling very quickly. Residential DOMs are down 14%, and condo DOMs are down 36% from last year.”

“In some pockets of the city, buyers are facing multiple offer situations, and properties are often selling over list price. These dynamics of low inventory, reduced days on market, and multiple offers are signs of a seller’s market in these areas. While a benefit to those sellers, it’s stressful and time consuming for buyers. The experience and guidance of a REALTOR® is essential in these types of market conditions,” he adds.

“A major factor contributing to the lack of housing stock is the shortage of quality options for those who might list their homes. Move-up sellers feed the market for first-time homebuyers. Another issue which adds to a seller’s reluctance to put their home on the market is the B-20 stress test which affects their purchasing power,” Delahunt asserts.

“In Ottawa, we have a population base that’s increasing year over year with a growth rate of 8.8 percent, which is higher than Ontario (5.7%) and Canada as a whole (5.9%). Immigration and high employment levels are bringing residents to our desirable and affordable city,” he suggests.

Delahunt continues, “With high demand and limited supply, prices will continue to be pushed upwards – it’s a simple and fundamental economic principle. Although we appreciate the recent measures the federal government has taken towards affordable homeownership, all three levels of government need to work together at implementing mechanisms that will also restore the supply side of the market.”

The average sale price of a residential-class property sold in March in the Ottawa area was $480,143, a rise of 7.2 per cent over March 2018. The average sale price for a condominium-class property was $290,181, an increase of 5.2 per cent from this month last year.

The $300,000 to $449,999 price range continued to represent the most active price point in the residential market, accounting for 43 per cent of March’s sales while 1 in 4 residential sales was in the $500,000 to $749,999 range. The most prevalent price point in the condominium market increased to the $225,000-$349,999 price range, accounting for 49 per cent of the units sold.

“The condo units in the entry-level range are near depletion as first-time homebuyers are trying to get into the market at the lowest possible price. Moreover, previous renters may have been pushed into condo ownership with rental vacancy rates in Ottawa at less than 1%. If there were concrete incentives for investors to purchase properties to lease or develop purpose-built rentals – it could certainly stimulate the rental market,” Delahunt concludes.

The Ottawa Children's Festival 
Enjoy a variety of live performing arts from around the world.

The Ottawa Children’s Festival returns to LeBreton Flats Park between Wednesday, May 8th and Sunday, May 12th.

This annual event, which has been running since 1985, celebrates the very best in children’s live performing arts from around the world!

There will be a variety of fun and interactive activities for everyone to enjoy before and after the performances. Activity zones, entertainers and hands-on explorations are just some of the interactive activities to look forward to.

The Ottawa Children’s Festival is not to be missed so bring along the entire family and enjoy crazy acrobatic stunts, playful theatre, unbelievable dance routines, incredible music and much more!

Selling vs. Renting -- What Makes Cents? 
Not ready to sell your home? You could always rent it out instead!

Opportunities usually come out of the blue. For instance, there might be a temporary work contract that forces you to relocate.

Or perhaps a strong buyer’s market means it’s a great time to buy, but you don’t want to be forced to sell your current home at a loss.

Renting your home might be an option but there are lots of things to consider. For starters, you'll want to conduct an in-depth financial analysis. Here are a few other things to keep in mind if you’re thinking about renting out your home:

  1. Step Away - Being a landlord isn't always easy. You’ll need to detach yourself emotionally from your old home.


  2. Tax Talk - There may be tax implications, so contact your tax advisor as rules can vary depending on individual circumstances.


  3. Money Matters - Make sure to have a bit of extra money on hand in case the rent doesn’t cover your mortgage, taxes, utilities, insurance, etc.


  4. Playing the Market - You may be able to increase your equity as the market gains strength, but if it tanks, you could end up on the losing end.


  5. Be Prepared - The future's uncertain so always be prepared for unexpected repairs or if your tenant suddenly falls behind on their rent.


  6. Raucous Renters - Tenants aren’t likely to treat your home with the same level of care as you once did so when it comes time to sell, your home may need some work.

As with any decision, it’s important to weight the pros and cons. If done right, renting can be one of the best financial decisions you ever make but you'll need to treat it like a business, so evaluate the rental market and research landlord/tenant laws before moving forward.

If, on the other hand, you decide to put your home on the market, make sure you have a professional real estate agent to help advise you on how to sell your home quickly and for top dollar. Please don’t hesitate to reach out if you have any questions regarding this decision, or any other real estate related matters.

The Secret Garden Inspiration 
Create a garden space that'll bring you health and relaxation!

It’s that fresh new time of year when many of us step outside, roll up our sleeves and bring our gardens back to life! Here are a few ideas to help inspire you this spring:

  1. Grow Local - Flowers, shrubs and grasses that are native to your area are easy to maintain and also provide a natural habitat for birds, pollinators and insects.

  2. Sky High - Vertical gardening is popular, especially for those with small spaces. All you need is a wall, fence or trellis to grow edibles, annuals and perennials. The sky’s the limit!


  3. Foodscaping - Instead of traditional vegetable patches, backyards are being transformed into edible landscapes that include vegetables, berries, fruits and herbs.


  4. Flower Power - Edible flowers such as red clover, bee balm, daylilies and borage are also surging in popularity as they look beautiful and taste even better!


  5. Child’s Play - It’s important to limit screen time and get kids back into nature so parents are encouraging their children to develop an appreciation for gardening.

The new generation of gardeners are interested in supporting the environment and growing their own food, which is slowly starting to change the way we live and eat. Gardening is also the perfect excuse to switch off your device and get in touch with mother nature!

Stay Tuned 
It’s time to haul your bike out of storage and give it a tune-up!

Riding a bike is a great way to get around as it’s environmentally friendly and a great form of exercise.

There’s no need for gas, insurance premiums, parking fees, etc. and best of all, it makes you feel like a kid again!

Whether you use your bike to get to work or you’re looking forward to hitting the trails, you’ll want to make sure your bike’s safe and reliable. Here are a few points to keep in mind:

  1. Get in Gear - Make sure your gears shift smoothly.
  2. Chain Reaction - Clean your chain before applying oil.
  3. Sick and Tired - Check your tread and the tire pressure.
  4. Pump the Brakes - Inspect your brakes for excessive wear and adjust your cables.

If you don’t feel comfortable tuning up your bike, take it to a local bike shop. It’s well worth it as regular maintenance will extend the life of your bike and it’ll also make riding much more enjoyable. Once you get your bike in tip-top shape, make sure you have a strong lock, a good helmet and a bright light!



PS As a thank you for referring me to a friend or family memeber that either Buys or Sells through me you will receive $ 500.00 cash.

 
Are you sick of scouring the paper and MLS sites looking for homes? Tired of playing telephone tag with agents only to hear the home's already sold? Sit back, relax and let me do the work for you! Just visit my website and check off the features you're looking for. Whenever a home matching your criteria hits the market, it'll be automatically flagged and emailed to you so you'll never have to worry about missing your dream home. This service is free and there's no obligation! Click here to get started.


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