Oasis Realty Brokerage, Ottawa Real Estate
Gord McCormick Ottawa, ON K2S0H6
Phone: 613-435-4692 Mobile: 613-371-9691
 

Oasis real estate blog articles



Why this may be the best time of year to buy a new construction home


Winter sales dip:
Ottawa real estate typically takes a pretty good dip from mid-November until at least mid-February and unit sales drop off 40 or 50% from the monthly average for the rest of the year.  It may however be the best time for many to buy a new construction home from a builder.

Why buy now?
Most builder deliveries are currently being booked for summer or early Fall 2017.  For those with an existing home to sell, this means one would end up selling the existing property in peak season in April, May or June to facilitate a closing in the summer time.

This is a much better situation than those with January, February or March closings-as these buyers are faced with selling an existing property in the latter part of the year when buyers are fewer and many buyers prefer not to close in the winter months.

Planning and preparation time advantages:
One of the advantages of buying a new home is that there is lead time to prep and existing property and make sure it is in optimal condition for listing.  Given the lead time between now and spring, there is some good “runway” for homeowners to do painting, organizing or minor repairs in advance of listing the property for sale.

It also gives more planning time with one's Realtor, mortgage broker, stager and trades or service people.

First time buyer advantages:
First time buyers can also take advantage of having some lead time to continue saving for their purchase and also take advantage of RRSP contributions for both 2016 and 2017 tax years, before withdrawing those funds to use for the house purchase.  Kind of like double dipping and is perfectly OK with the tax man, as long as the funds are deposited for at least 90 days.

*We have deals for new construction buyers!
First time buyers get a $1,000-$2,000 buyer bonus if they buy a new construction home with us.

Those with an existing home to sell can take advantage our super low full service MLS® listing fee of only 3.0% if they buy a new construction home with us before the end of January 2017 and quote this article. (*not intended to solicit those with existing representation agreements, some conditions apply)

We also list homes for a major Ottawa builder, so if we can help them meet their sales objectives, we can certainly help the individual home seller (or buyer!) too.  We know new construction and can help you with the process. 

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692  oasisrealty@rogers.com
www.oasisrealtyottawa.com
@oasisrealtyOTT
https://www.facebook.com/oasisrealtyottawa/

 


Fed spending/headcount continues to hike home sales in Ottawa


November 2016 yielded another pretty good month in Ottawa real estate, buoyed by continued growth in Federal government headcount and spending.  Sales were positive, with new home sales and condo’s leading the way.

New home sales up 18.5% year-to-date:
The new home segment has seen a major surge this year and that is good news for builders.  Some of these sales may challenge the resale market which is pretty flat in average price this year, although the number of residential units sold is up 5.5% so far this year. Average selling prices are ahead only .9% overall for residential at $396,109.

Condo sales much better this year, up 9.6%
Condo sales on MLS® (which also includes some new construction sales but not all)  where up 17.3% in November and are showing a 9.6% increase year-to-date but average prices are again pretty flat with the average price sold at $260,880 virtually unchanged from 2015.

Listing inventory pullback has helped the market:
The number of new listings this year is down by about 7% overall and current inventories show the number of residential listings down 14.3 % at the end of November and condo listings down 13.3%.   Rental listings were also down by 24.5% at month’s end.
This has moved us away from some very high listing inventory levels experienced over 2014 and 2015 and keeps us in a much more balanced market.

How long does it take a property to sell in Ottawa?
Our days-on-market to sell the average property has increased slightly to 55 days for residential properties (up from 50) and 70 days for the average condo (up from 62 days last year).  This is a key statistic for those considering a sale to study in detail for their own area, as it is critical in assessing both marketing timelines and listing pricing.  A Realtor can provide up to date and detailed information in this regard.

Most popular pricing categories:
The $300,000 to $400,000 price category is the most active/popular range, followed closely by the $200,000-$300,000 price category.
Overall, 80% of residential sales in Ottawa are done at lower than $500,000 and 75%+ of condo sales are done at less than $300,000. These types of ratios are important for sellers to consider when listing, as it determines the size of the potential market for their property.

What’s next?
We are entering the quieter period for real estate in Ottawa and while sales should continue reasonalbly strong vs previous years, the months of November-February are our 4 slowest months of the year.  Sellers will want to carefully review pricing and competitive factors prior to listing their property for sale during this period.

May be best time to buy new construction for 2017 delivery:
Buying new construction may be optimal at this time of year for closings in summer 2017, as those with existing homes to sell, will be able to sell in the busy spring market.
First time buyers will have more months to save and also possibly be able to use their 2016 tax year RRSP contribution for their down payment, in addition to getting the 2016 tax break.