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Your Exclusive Real Estate Market Update

In May 2024, the Ottawa Real Estate Board (OREB) reported a total of 1,545 homes sold through the MLS® System, marking a 9.2% decrease compared to May 2023. This figure was 3.7% lower than the five-year average and 13.2% below the ten-year average for May. Year-to-date, home sales reached 5,673 units over the first five months of the year, reflecting a 5.2% increase from the same period in 2023.

OREB President Curtis Fillier noted that Ottawa's early spring market remained steady, with an increase in new listings indicating growing seller confidence. However, some sellers may have awaited the Bank of Canada's interest rate announcement before making decisions, as the first interest rate cut in four years occurred. Nevertheless, supply issues and high home prices persist as challenges despite positive economic indicators.

By the Numbers – Prices:

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures.

  • The overall MLS® HPI composite benchmark price was $651,300 in May 2024, a marginal gain of 1.2% from May 2023.

    • The benchmark price for single-family homes was $736,000, up 1.1% on a year-over-year basis in May.

    • By comparison, the benchmark price for a townhouse/row unit was $517,500, up 2.1% compared to a year earlier.

    • The benchmark apartment price was $425,000, up 2.0% from year-ago levels.

  • The average price of homes sold in May 2024 was $690,683 increasing 0.8% from May 2023. The more comprehensive year-to-date average price was $679,862, increasing by 1.8% from the first five months of 2023.

  • The dollar volume of all home sales in May 2024 was $1.06 billion, down 8.5% from the same month in 2023.

OREB cautions that the average sale price 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 calculation of the average sale price is based on the total dollar volume of all properties sold. Prices will vary from neighbourhood to neighbourhood.

By the Numbers – Inventory & New Listings

  • The number of new listings saw an increase of 26.2% from May 2023. There were 3,034 new residential listings in May 2024. New listings were 23.2% above the five-year average and 10.2% above the 10-year average for the month of May.

  • Active residential listings numbered 3,552 units on the market at the end of May 2024, a gain of 59.4% from May 2023. Active listings were 72.2% above the five-year average and 2.9% below the 10-year average for the month of May.

  • Months of inventory numbered 2.3 at the end of May 2024, up from 1.3 in May 2023. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. 

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Bank of Canada Cuts Rates: Impact on Housing Market

After maintaining the overnight lending rate at a two-decade high of 5% for 11 months, the Bank of Canada has now reduced its policy rate. In its scheduled June announcement, Canada’s central bank lowered the target for the overnight rate by 25 basis points to 4.75%.


Despite inflation remaining slightly above the BoC’s target of 2%, the overall consumer price index has decreased over the past year, indicating a slowdown in core inflation which is expected to continue.


“Governing Council decided monetary policy no longer needs to be as restrictive and lowered the policy interest rate by 25 basis points to 4.75%,” said Tiff Macklem, Governor of the Bank of Canada, in a statement to reporters following the announcement. “We’ve come a long way in the fight against inflation. And our confidence that inflation will continue to move closer to the 2% target has increased over recent months. The considerable progress we’ve made to restore price stability is welcome news for Canadians.”

Impact on Canada’s Housing Market: With the anticipated interest rate cut now in effect, many rate-sensitive homebuyers are likely to see this as a cue to re-enter the housing market.


A recent Royal LePage survey conducted by Leger found that 51% of Canadians who had postponed their home buying plans in the past two years would return to the market once the Bank of Canada reduced its key lending rate. Specifically, 10% of respondents said a 25-basis-point drop would prompt them to re-enter the market, 18% would wait for a cut of 50 to 100 basis points, and 23% would need to see a cut of more than 100 basis points before resuming their search.


“The long-awaited cut to the overnight lending rate has arrived. The Bank of Canada held its key lending rate at 5% for the past 11 months, and it has been more than four years since the rate was last reduced,” commented Phil Soper, president and CEO of Royal LePage. “Our research shows that half of sidelined homebuyers in Canada plan to resume their home search once the bank rate starts to decline. This will likely spark activity and put upward pressure on home prices in the latter half of the year.”


The Bank of Canada will make its next announcement on Wednesday, July 24th.

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Spring 2024 Canadian Real Estate Market: Balanced Conditions Amid Rising Inventory and Cautious Buyers

Despite increasing inventory levels, many of Canada’s homebuyers have remained cautious this spring, leading to more balanced and less intense market conditions in the past month.

The latest report from the Canadian Real Estate Association (CREA) shows that home sales across Canadian MLS Systems decreased by 1.7% from March to April 2024. However, actual sales activity was 10.1% higher than in April of the previous year.

Meanwhile, newly listed homes saw a 2.8% increase in April 2024 compared to March. With slower sales and more new listings, the total number of homes on the market surged by 6.5%, reaching its highest point since just before the COVID-19 pandemic. This represents one of the largest monthly increases on record, second only to the market slowdown in early 2022.

James Mabey, Chair of CREA’s 2024-2025 Board of Directors, commented in the monthly report, "After a long hibernation, the spring market is now officially underway. The increase in listings is resulting in the most balanced market conditions we’ve seen at the national level since before the pandemic. Mortgage rates are still high, and it remains challenging for many to enter the market, but for those who can, it’s the first spring market in some time where they can shop around, take their time, and exercise some bargaining power. Given the demand, it's uncertain how long this will last."

With sales declining and new listings increasing in April, the national sales-to-new listings ratio dropped to 53.4%, slightly below the long-term average of 55%. By the end of April, there were 4.2 months of inventory nationwide, up from 3.9 months at the end of March. This is the highest level since the pandemic began and exceeds the long-term average of five months.

Shaun Cathcart, CREA’s Senior Economist, noted, "April 2023 saw a surge of buyers re-entering a market with new listings at 20-year lows, whereas this spring has been the opposite, with a healthier number of properties to choose from but less enthusiasm on the demand side."

The national average home price in April 2024 was $703,446, down 1.8% from April 2023. The National Composite MLS Home Price Index (HPI) remained unchanged from March to April, marking the third consecutive month of stable prices. Regionally, prices are mostly stable across the country, except in Calgary, Edmonton, and Saskatoon, where they have been steadily rising since the beginning of last year.


Source:https://blog.royallepage.ca

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Spring Prep: A Comprehensive Checklist for Opening Your Cottage or Cabin

Preparing your cottage or cabin for the spring season is an eagerly anticipated task for many homeowners. As summer approaches swiftly, it's time to gear up for another season of relaxation and enjoyment away from urban life. Ensuring a smooth transition requires meticulous planning and execution. Here's a comprehensive checklist of the top 10 tasks to complete before opening your recreational property for the season.

  1. Utility Restoration: Before your arrival, contact utility providers to reinstate electricity, gas, internet, and any other essential services after the winter hiatus.

  2. Insurance Review: Ensure that your property, boats, ATVs, and trailers are adequately insured for the summer season to avoid any coverage gaps in case of accidents or natural calamities.

  3. Property Inspection: Conduct a thorough inspection upon arrival, checking for weather damage such as missing shingles, clogged gutters, leaks, and debris from fallen branches.

  4. Deck and Siding Assessment: Examine the condition of your deck and siding, cleaning outdoor areas and inspecting recreational equipment like barbecues and hammocks.

  5. Interior Check: Upon entering, watch for signs of moisture, pest infestation, and unpleasant odors.

  6. Ventilation: Open doors and windows to freshen up the interior and consider adding fragrances to combat stale odors. Laundering bedding can also help freshen up the space.

  7. Mold Inspection: Check window sills and door frames for any mold growth due to moisture and condensation.

  8. Water and Electricity Reinstatement: After thorough checks, restore water and electricity, ensuring pipes are free of leaks or frost damage.

  9. Appliance and Electrical System Testing: Verify the functionality of all appliances and electrical systems once power is restored.

  10. Replenish Supplies: Replace batteries in smoke and carbon monoxide detectors, clean or replace central ventilation filters, refill fire extinguishers, and restock first-aid kits.

By adhering to this comprehensive checklist, you can ensure your cottage or cabin is primed and ready for the summer season ahead!

Interested in learning more about the recreational market in Canada? Read the latest market trends and insights in Unveiling Opportunities: Spring 2024 Outlook for Canada’s Recreational Property Market

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Ottawa Real Estate Market: A Resilient Spring Amidst Changing Dynamics

In April 2024, Ottawa Real Estate Board (OREB) reported 1,456 homes sold via the MLS® System, marking an 8.9% increase from the same period in 2023. However, sales were slightly below both the five and ten-year averages for April.

Year-to-date figures showed a promising 11.5% increase in home sales compared to the same period in 2023. OREB President Curtis Fillier described the current market as typical for spring, noting a restored confidence among buyers and sellers. Sellers are more confident due to recent sales activity, leading to an uptick in listings, while buyers feel less pressure in the post-pandemic market and are taking their time to find suitable properties.

Fillier emphasized the importance of looking closely at sales details, noting changing buyer demographics and a shift towards townhomes becoming a seller's market due to shrinking supply. Single-family homes remain the most active segment, influencing average sale prices.

Regarding prices, the MLS® Home Price Index (HPI) indicated marginal gains, with the overall benchmark price reaching $643,700 in April 2024. Single-family homes saw a 1.6% increase in benchmark price, while townhouses and apartments also experienced slight increases.

New listings surged by 40.5% compared to April 2023, with active listings increasing by 36.6%. However, months of inventory remained relatively stable, suggesting sustained market activity.

 
 
 
 
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Navigating the Pros and Cons of Adjustable-Rate Mortgages: A Comprehensive Guide

Adjustable-rate mortgages (ARMs) present borrowers with a distinctive opportunity to leverage fluctuating interest rates, offering flexibility and potential cost savings over the loan's duration. Nevertheless, ARMs also entail inherent risks and uncertainties that borrowers should carefully weigh before opting for this mortgage type. This article delves into the advantages and disadvantages of adjustable-rate mortgages, aiding you in discerning whether an ARM suits your homeownership requirements.

Understanding Adjustable-Rate Mortgages (ARMs)

An adjustable-rate mortgage (ARM) is a home loan type wherein the interest rate remains unfixed for the loan's entirety. Instead, it fluctuates periodically based on changes in an index, such as the prime rate or the London Interbank Offered Rate (LIBOR). Typically, ARMs commence with an initial fixed-rate period, succeeded by adjustable-rate intervals where the interest rate can vary annually or at specified intervals.

The Pros of Adjustable-Rate Mortgages

  • Lower Initial Interest Rates: ARMs often initiate with lower interest rates compared to fixed-rate mortgages, appealing to borrowers seeking reduced monthly payments and potential savings during the initial fixed-rate phase.

  • Potential for Lower Payments: Should interest rates decrease or remain stable, ARM borrowers may experience decreased monthly payments during adjustable-rate periods, enhancing affordability and cash flow flexibility.

  • Short-Term Ownership Benefits: ARMs can prove advantageous for borrowers planning to sell or refinance their homes within a few years, allowing them to capitalize on the lower initial interest rates while avoiding prolonged exposure to interest rate fluctuations.

  • Rate Caps and Limits: Most ARMs incorporate rate caps and limits, constraining the extent to which the interest rate can fluctuate during each adjustment period and throughout the loan's lifespan. This provision offers borrowers a level of protection against significant rate changes.

The Cons of Adjustable-Rate Mortgages

  • Interest Rate Risk: The primary drawback of ARMs lies in the uncertainty surrounding future interest rate movements. If interest rates surge substantially during the adjustable-rate periods, borrowers may face heightened monthly payments and increased financial strain.

  • Payment Shock: Swift increases in interest rates can result in payment shock for ARM borrowers, causing a sudden and substantial rise in monthly mortgage payments that may prove challenging to afford, particularly for borrowers with fixed incomes.

  • Budgeting Challenges: The variable nature of ARM payments can pose challenges in budgeting and financial planning, necessitating borrowers to accommodate potential changes in housing expenses over time.

  • Long-Term Costs: While ARMs may offer lower initial interest rates, borrowers holding onto their mortgages for extended durations might end up paying more in interest over the loan's lifespan if interest rates soar during adjustable-rate periods.

Is an ARM Right for You?

Determining whether an adjustable-rate mortgage aligns with your homeownership needs hinges on various factors, including your financial situation, risk tolerance, and future plans. Reflect on the following questions:

  1. Are you comfortable with the possibility of fluctuating interest rates and payments?

  2. Do you intend to reside in your home for an extended period or consider selling/refinancing within a few years?

  3. How do prevailing interest rate trends and economic conditions influence your decision?

  4. Have you thoroughly assessed and comprehended the terms, features, and risks associated with the ARM product?

Ultimately, reaching out to a qualified mortgage advisor or financial planner can provide invaluable support in assessing your options and deciding whether an ARM aligns with your financial goals and preferences. Don't hesitate to contact us for a list of our trusted mortgage advisors and financial planners who can assist you further.

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Unveiling Opportunities: Spring 2024 Outlook for Canada’s Recreational Property Market

With the arrival of warmer weather, Canadians eagerly await weekends filled with waterfront adventures and tranquil evenings around the fire pit. As prime time approaches in the recreational housing market, potential buyers are gearing up to secure their slice of lakeside tranquility or a cozy family retreat, intensifying competition amidst limited supply and driving property values upward.

The Spring 2024 Recreational Property Report forecasts a 5.0% increase in the median price of single-family homes in Canada's recreational regions, reaching $678,930. This projected rise is fueled by a resurgence in consumer confidence, enticing sidelined buyers back into the market.

The pandemic witnessed an extraordinary surge in demand for recreational properties nationwide, driven by remote work opportunities and a yearning for outdoor living. Though economic fluctuations post-pandemic tempered prices, the underlying demand for recreational properties remains strong, hinting at a resurgence in activity for 2024.

In 2023, the median price of single-family homes in recreational regions saw a slight decrease of 1.0% compared to the previous year, following a more substantial decline of 11.7% in 2022. Notably, waterfront properties experienced a 7.9% decrease in median price, while standard condominiums dipped by 1.5%.

Despite fluctuations in inventory levels, 64% of surveyed Royal LePage recreational real estate professionals report sustained or increased demand from buyers. This demand, coupled with potential interest rate cuts, is expected to exert upward pressure on prices in Canada’s recreational property market.

Experts anticipate a slight to significant increase in demand following interest rate reductions, highlighting the market’s resilience to mortgage rate fluctuations. A cut to the Bank of Canada’s key lending rate, anticipated later in the year, is poised to bolster consumer confidence and drive heightened activity in the recreational property sector.

Key highlights from the report include expectations of price appreciation across all provincial recreational markets in 2024, with Ontario leading at 8.0%. Additionally, condominiums in Atlantic Canada witnessed significant year-over-year price growth in 2023, soaring by 16.9%. Despite recent fluctuations, the national median single-family home price in Canada’s recreational real estate market remains substantially higher than 2019 levels, showcasing the enduring appeal of recreational living.

Take the leap into your dream recreational property today! With the Spring 2024 forecast predicting a surge in demand and property values, now is the time to secure your piece of lakeside serenity or cozy family retreat. Don't miss out on this opportunity to embrace the outdoor lifestyle you've been longing for. Contact us now to explore available properties and make your recreational living dreams a reality!

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Building for Tomorrow: Key Housing Policies Unveiled in Canada's 2024 Budget

The Canadian federal government revealed its 2024 budget on Tuesday, April 16th, unveiling a range of initiatives aimed at bolstering housing affordability for Canadians. Here's a breakdown of eight housing policies outlined in this year’s budget:

  1. Canadian Renters’ Bill of Rights: With more Canadians renting for extended periods, measures were introduced to safeguard tenants and facilitate their transition to homeownership. This includes the creation of a national standard lease agreement and incentivizing landlords to disclose rental price history. Additionally, a Tenant Protection Fund with $15 million allocated over five years will offer legal support to tenants.

  2. Funding for New Home Construction: Significant investment was pledged towards constructing new housing units. The Canada Builds initiative, alongside increased funding for the Apartment Construction Loan Program, aims to facilitate the creation of 30,000 new homes by 2031. Additional financial support was allocated to the Housing Accelerator Fund and the Canada Housing Infrastructure Fund.

  3. Extended Mortgage Amortizations: First-time buyers of newly-constructed homes will have access to 30-year mortgage amortizations, effective August 1st. This move is expected to reduce monthly payments and ease the financial burden on homebuyers.

  4. Amendments to the Home Buyers’ Plan: The RRSP withdrawal limit on the Home Buyers’ Plan was raised from $35,000 to $60,000, offering aspiring homeowners greater flexibility in accessing funds for down payments, for those first time buyers who have been able to afford RRSP savings.

  5. Support for Single-Family Home Suites: A $409.6 million investment over four years was earmarked for the Canada Secondary Suite Loan Program, enabling homeowners to borrow up to $40,000 for the construction of secondary housing units.

  6. Funding for Post-War Housing Catalog: The modernization of the post-war home design catalogue received $11.6 million in funding, facilitating the development of standardized blueprints for various housing types.

  7. Conversion of Public Lands into Housing: To address land scarcity, plans were announced to utilize public lands for housing development. The Public Lands for Homes Plan aims to build 250,000 new homes by 2031, with measures to reduce capital costs and repurpose federal office buildings for residential use.

These policies are the Federal Government's attempt to address housing affordability challenges and fostering sustainable housing development across Canada. While the efficacy of these changes remains to be seen, it appears that this is only the beginning based on the policies introduced over the last several months.

Interested in learning more about the 2024 federal budget? Access the complete budget announcement for further details. Click here.
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Unlocking the Door to Homeownership: Navigating Ontario's Land Transfer Tax

Stepping into homeownership marks a significant journey filled with excitement and anticipation. Yet, amidst the thrill, it's essential to grasp the financial responsibilities that accompany this milestone. In Ontario, one such obligation is the Land Transfer Tax (LTT), a crucial consideration for prospective buyers.

Understanding the Land Transfer Tax

The Land Transfer Tax is a fee levied by the Ontario government upon the purchase or transfer of land or its interests. Predominantly borne by the buyer, this tax is calculated based on the property's purchase price. Delving deeper into its intricacies unveils the following:

Calculation of Land Transfer Tax

The payable LTT hinges on the property's purchase price, with rates varying accordingly. Here's a breakdown of Ontario's current LTT rates:

  • 0.5% of the first $55,000 of the home's value.
  • 1.0% of any additional value between $55,000 and $250,000.
  • 1.5% of any additional value between $250,000 and $400,000.
  • 2.0% of any additional value between $400,000 and $2 million.
  • 2.5% of any additional value exceeding $2,000,000 for properties housing no more than two single-family residences.

First-Time Home Buyer Refund

To ease the financial burden on first-time homebuyers, the Ontario government extends a refund program for the LTT. Eligible individuals may receive a complete or partial refund, up to a maximum of $4,000, offering substantial relief in navigating upfront expenses. However, it's pertinent to note that since January 1, 2017, this program's eligibility is limited to Canadian citizens and permanent residents.

Considerations for Home Buyers

In charting your path towards homeownership, incorporating the LTT into your financial blueprint is paramount. Collaborating with a mortgage broker or seasoned real estate professional aids in estimating the LTT based on the property's value, facilitating prudent financial planning. Moreover, factoring in ancillary expenses like legal fees, home inspections, and moving costs is pivotal, ensuring comprehensive financial preparedness.

Next Steps: Empowering Informed Decisions

Grasping the nuances of the Land Transfer Tax equips Ontario homebuyers with the insight needed to navigate the real estate landscape confidently. Armed with knowledge about LTT rates, potential refunds, and auxiliary expenses, individuals can make informed decisions throughout the purchasing journey. For tailored guidance and exploration of mortgage options, consulting with a reputable mortgage broker, such as Mortgage Brokers Ottawa, streamlines the process. Ultimately, arming oneself with financial literacy sets the stage for a seamless and rewarding homeownership experience.

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Understanding Land Transfer Tax for Homebuyers in Ontario

The journey of purchasing a home is filled with excitement, yet it's crucial to grasp the financial responsibilities involved. Among these obligations in Ontario lies the Land Transfer Tax (LTT). In this guide, we'll offer an overview of LTT, covering its calculation method, potential refunds for first-time homebuyers, and key considerations for buyers.

Definition of Land Transfer Tax (LTT) The Land Transfer Tax is a fee mandated by the Ontario government upon the acquisition or transfer of land or any interest in land. Typically borne by the buyer, this tax is determined based on the property's purchase price.

Calculating Land Transfer Tax The payable LTT amount is contingent on the property's purchase price. Below are the current provincial rates for LTT:

First-Time Homebuyer Rebate To support first-time homebuyers, the Ontario government extends a rebate on LTT. Eligible individuals can receive either a full or partial refund, easing the upfront financial burden of home purchase. It's worth noting that since January 1, 2017, eligibility for this rebate is limited to Canadian citizens and permanent residents.

Considerations for Homebuyers In planning your home purchase finances, factoring in LTT is crucial. Consulting a mortgage broker or a knowledgeable real estate expert to estimate the LTT based on the property's price is prudent. This ensures effective financial planning and management. Additionally, accounting for other associated costs like legal fees, home inspections, appraisal expenses, and moving costs is essential. Being financially prepared is pivotal as these expenses can accumulate.

Next Steps Comprehending Land Transfer Tax is indispensable for Ontario homebuyers. Equipping yourself with knowledge about LTT rates, potential rebates, and other related costs empowers you to make informed decisions during the home purchase process. Seek personalized guidance from a mortgage broker at Mortgage Brokers Ottawa to explore available mortgage options and navigate the journey smoothly. Remember, home purchase is a significant investment, and being well-informed about its financial aspects ensures a seamless and successful experience.

Ontario's Current LTT Rates: In Ontario, the Land Transfer Tax you'll pay is based on your home's value:

  • 0.5% of the first $55,000 of the home's value.

  • 1.0% of any additional value between $55,000 and $250,000.

  • 1.5% of any additional value between $250,000 and $400,000.

  • 2.0% of any additional value between $400,000 and $2 million.

  • 2.5% of any additional value exceeding $2,000,000 if the land contains no more than two single-family residences.

Start your journey towards homeownership today with expert guidance from your trusted real estate agent! Gain a comprehensive understanding of Ontario's Land Transfer Tax to make informed decisions throughout the buying process. Contact us today and we will be happy to refer you to one of our trusted mortgage brokers for personalized advice and explore tailored mortgage options designed just for you. Don't let financial uncertainties hinder your dreams – arm yourself with knowledge and embark on your path to homeownership with confidence. Reach out now and let us guide you towards a successful homebuying experience!

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Navigating the Canadian Housing Market: Insights on Interest Rates and Home Buying Intentions

The past two years saw 51% of Canadians delaying their home buying plans, responding to the rise in borrowing costs. This surge led to a significant reassessment of intentions among millions of Canadians. Since March 2022, when the Bank of Canada began raising its key lending rate, over a quarter of the adult population (27%) actively participated in the housing market. However, more than half of them (56%) postponed their property search due to escalating interest rates, according to a recent survey by Royal LePage and Leger.

As inflation inches closer to the desired 2% target, expectations are high for the Bank of Canada to make its first cut to the overnight lending rate later this year. This anticipated reduction is poised to bring relief to variable-rate mortgage holders and those who deferred their home buying plans. Among those who delayed their purchase, 51% are ready to resume their search if interest rates drop. Specifically, 10% await a mere 25-basis-point drop, 18% anticipate a cut of 50 to 100 basis points, while 23% seek more than a 100-basis-point reduction before reconsidering their search.

Though 20% of sidelined buyers have abandoned their plans altogether, another 12% are poised to re-enter the market if the Bank of Canada's key lending rate remains steady. Among those aiming to re-enter once rates decrease, 44% prefer a four-year or five-year fixed-rate mortgage, the most favoured mortgage type and term in Canada. This number doubles the respondents intending to opt for a variable-rate mortgage (22%), while another 12% plan to secure a short-term fixed-rate mortgage.

Despite the challenges posed by rising interest rates, 65% of respondents remain actively engaged in the home buying process. This engagement spans from casual browsing of listings (39%) to continuing to save for a down payment (19%), applying for a mortgage pre-approval (12%), or already having obtained one (7%). However, 26% of respondents have temporarily disengaged from the home shopping process.

Ready to make your move in the housing market? Don't let rising interest rates hold you back! Whether you're ready to buy, actively browsing listings, or just considering your options, now is the time to stay informed and prepared. Let's take the next step together!

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Ottawa's Real Estate Market: Spring Surge and Shifting Dynamics

Early signs of a vibrant spring real estate market are evident in Ottawa's MLS® data. In March 2024, the Ottawa Real Estate Board recorded 1,165 home sales, marking a 10% increase from the same period last year. However, despite this surge, sales remained 21.5% below the five-year average and 15% below the ten-year average for March.

Year-to-date figures also depict a positive trend, with 2,678 homes sold in the first three months of 2024, reflecting a 13.1% increase from the corresponding period in 2023. Curtis Fillier, President of OREB, highlights the overall health of Ottawa's real estate market, anticipating an active spring and summer. Fillier notes the growing confidence among sellers, as indicated by the rise in new and active listings, coupled with increased showing activity. However, he observes a cautious approach from buyers, likely due to concerns regarding affordability and limited supply.

Fillier suggests a shift is imminent in the market dynamics, driven by post-pandemic adjustments in housing needs. This includes trends such as downsizing, urban migration, and seeking properties better suited to evolving requirements. Consequently, there's mounting pressure on the mid-range property market in Ottawa, which traditionally faces tight inventory levels. Fillier advises both buyers and sellers not to delay their decisions in this evolving market landscape.

In terms of pricing, the MLS® Home Price Index (HPI) reveals consistent growth. The composite benchmark price reached $636,700 in March 2024, reflecting a 2.7% increase year-over-year. Single-family homes saw a benchmark price rise of 2.6%, reaching $719,000, while townhouse/row units and apartments experienced modest gains as well.

The average price of homes sold in March 2024 was $682,078, up 5.1% from the previous year, with the year-to-date average price showing a 3.2% increase. Overall, the dollar volume of home sales in March 2024 surged by 15.6% compared to the same month in 2023.

In terms of inventory and new listings, March 2024 witnessed a 13.5% increase in new residential listings compared to March 2023, totalling 2,074 new listings. However, this figure remained slightly below the five-year average and significantly lower than the ten-year average for March. Active residential listings also rose by 18.3% year-over-year, with 2,543 units on the market by the end of March 2024. Despite this increase, months of inventory only saw a slight uptick, indicating a persistent imbalance between supply and demand in the Ottawa real estate market.

Take Charge of Your Real Estate Journey Today!

Whether you're looking to buy or sell in Ottawa's dynamic market, now is the time to act. Don't wait on the sidelines as opportunities unfold and market conditions evolve. Reach out and we can guide you through every step of the process. Seize the moment and make your move in Ottawa's buzzing real estate scene!

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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.