ARCHIVE

Ottawa Real Estate Board on Budget 2019

The Ottawa Real Estate Board (OREB) is pleased the federal government is taking measures towards supporting homeownership for many Canadians in the 2019 budget but suggests there were opportunities missed.

OTTAWA – The Ottawa Real Estate Board (OREB) is pleased the federal government is taking measures towards supporting homeownership for many Canadians in the 2019 budget but suggests there were opportunities missed.

“Some first-time homebuyers will be assisted through the shared-equity mortgage program and the increase of RRSP withdrawals to $35,000,” states Dwight Delahunt, OREB’s 2019 President. “However, we would’ve preferred a measure such as the one we proposed to government to increase the first-time homebuyers’ tax credit from $750 to $2500 as this would not have created another debt to be repaid.”

“While the government has said these measures are to help Millennials specifically, we question whether this cohort actually has this amount invested in RRSPs and whether they will be able to qualify for a shared-equity mortgage program. Many Millennials are facing affordability issues related to their income levels and student debt,” Delahunt asserts.

“We certainly applaud the modernization of the Homebuyer’s Plan to include those going through difficult life-changing circumstances, such as the breakup of marriage/common-law relationships – we have been advocating for this for some time,” he acknowledges.

“Direct measures to address the supply side challenges we are experiencing, particularly in our local Ottawa market, is another issue we would have liked to seen more concrete action on. Although the government has recognized the need to examine this matter further and is launching a challenge to municipalities and creating an expert panel to provide recommendations on the future of housing supply and affordability, we think this matter has already been examined by many experts and the government could have come up with more substantial measures,” Delahunt suggests.

“Our biggest disappointment was that government failed to make any adjustments to the B-20 (stress test) which was an attempt to cool two major markets in the country. We hope the government will continue to monitor the effects of its mortgage policies and be open to adjusting them if necessary. They need to recognize that while mortgage debt is on paper the largest component of household debt, it is the lines of credit and credit cards that can have a major impact due to the much higher carrying costs of these facilities.”

“As reported by the Canadian Real Estate Association (CREA), the economic and social benefits of homeownership are vital,” Delahunt concurs. “Between the $31.7 billion in spin-off spending and the creation of more than 216,000 jobs in 2018, a strong, healthy housing sector is crucial to the Canadian economy.”

Delahunt concludes, “Overall, we are satisfied with the attempts put forth by the federal government to address many issues involved in the housing market and appreciate their recognition of the valuable input provided by REALTORS®, and their Boards and Associations.”

February Buyers Snap Up Limited Inventory

Members of the Ottawa Real Estate Board sold 1,005 residential properties in February through the Board’s Multiple Listing Service® System, compared with 978 in February 2018, an increase of 2.8 per cent. February’s sales included 756 in the residential property class, a rise of 3.8 per cent from a year ago, and 249 in the condominium property class, a decrease of 0.4 per cent from February 2018. The five-year average for February sales is 949.

Members of the Ottawa Real Estate Board sold 1,005 residential properties in February through the Board’s Multiple Listing Service® System, compared with 978 in February 2018, an increase of 2.8 per cent. February’s sales included 756 in the residential property class, a rise of 3.8 per cent from a year ago, and 249 in the condominium property class, a decrease of 0.4 per cent from February 2018. The five-year average for February sales is 949.

“February has been a strong month, and with year-to-date unit sales 8% higher in both the condo and residential categories, it is looking very favourable for the spring market,” states Ottawa Real Estate Board’s 2019 President, Dwight Delahunt.

“Days on market continue to decline, and although inventory has fallen to its lowest level in many years, we are still managing to satisfy demand even with 900 fewer listings than this time last year,” he adds. “If we had more supply, our unit sales would be even greater.”

The average sale price of a residential-class property sold in February in the Ottawa area was $466,540, an increase of 8.6 per cent over February 2018. The average sale price for a condominium-class property was $288,354, an increase of 5.6 per cent from this month last year.*

“The Ottawa market is well ahead of inflation in regards to average prices for both condo and residential properties. We are in a comfortable position and remain one of the most affordable markets in the country,” Delahunt points out.

The $300,000 to $449,999 range continued to represent the most active price point in the residential market, accounting for nearly 44 per cent of February’s sales while 26 per cent of residential sales were in the $500,000 to $750,000 price range. Between $175,000 to $274,999 remained the most prevalent price point in the condominium market, accounting for 48 per cent of the units sold.

“If you are thinking about selling, don’t wait – get a jump on the spring market! Now is the time to have a conversation with your REALTOR® who understands the best way to position your home in the market and has the experience to guide you through its complexities,” Delahunt suggests. “This is the type of market you certainly wouldn’t want to navigate without one.”

In addition to residential and condominium sales, OREB Members assisted clients with renting 342 properties since the beginning of the year.

* The Board 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. Price and conditions will vary from neighbourhood to neighbourhood.