Wednesday, April 5, 2017

March Resale Market Goes Out Like a Lion

OTTAWA, April 5, 2017 - Members of the Ottawa Real Estate Board sold 1,485 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,160 in March 2016, an increase of 28 per cent. The five-year average for March sales is 1,240.
“The busy spring selling season descended upon Ottawa early this year,” remarks Rick Eisert, President of the Ottawa Real Estate Board. “Unit sales for March marked the second-best on record, only 13 units down from the record set in March 2010. We’re also starting to see properties move faster, with the average cumulative days on market sitting at 82 days. With all these positive numbers, it’s still important to emphasize that price and conditions vary from neighbourhood to neighbourhood.”

March’s sales included 314 in the condominium property class, and 1,171 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, 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.

“We’re seeing a lot more multiple offers than we’ve experienced in a while, mostly due to lower inventory levels,” says Eisert. “The number of properties listed in March also experienced a decrease over last year, and is about 100 units shy of the five-year listing average for March.”

The average sale price of a residential-class property sold in March in the Ottawa area was $415,467, an increase of 5.3 per cent over March 2016. The average sale price for a condominium-class property was $272,597, an increase of 5.3 per cent over March 2016. 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.

“We’re seeing a trend since the beginning of the year, with 50 properties sold over $1 million in the first quarter of 2017, compared to only 22 in the first quarter of 2016,” explains Eisert. “Again this month, a higher number of properties in the over $1 million price range were sold. These gains were in both the residential and condominium property classes, with seven more residential units and four more condo units sold this year over last year. These high-end property sales are taking place throughout the market with Rockcliffe Park, The Glebe, and Westboro leading the way.”

“The two most active price points in the residential market in March were the $300,000 to $399,999 and the $400,000 to $499,999 range, accounting for 53.7 per cent of the market. Within the condo market, the most active price range was in the $150,000 to $249,999, accounting for 51.2 per cent of the market,” says Eisert. “In addition to residential and condominium sales, OREB Members assisted clients with renting 639 properties since the beginning of the year.”

Sunday, April 2, 2017

Hardwork leads to resuts

Our home was for sale for many months with another Broker ..My wife and I had built a new home and our former residence was , subject to staged furniture , vacant. Greg  gave us good advice on pricing . Bennett Property Shop kept us up to date on all showings and feedback . After open houses they followed up with all Visitors and once again provided us with feedback . There was some small repairs to perform after acceptance of the Agreement of Purchase and Sale and Greg once again provided us with guidance and assistance in having the work completed . My profession as a lawyer has giving me great experience with Brokers . Without criticizing the first broker who worked very hard ,sometimes it is just a matter of good luck .What it takes is hard work and Bennett Property Shop provided that.


Thursday, March 30, 2017

6 ideas to help Toronto housing issues

Distinguished economist Benjamin Tal says that rentals "must be part of the solution" to the GTA housing problem

Report Summary:
  • The GTA is not a normally functioning market due to a history of legislation failure, as well as a severe lack of land;
  • House prices, while always on the rise in the GTA, have followed a “predictable path” until 2016, when the average-home price increase spiked by 17.3% and is currently at over 20%;
  • Unexpectedly, condo prices followed suit to almost parity, rising by 16% in the fourth quarter of 2016;
  • Contrary to the perception that there are “too many condos”, condo sales increased by a record 34%, while the supply was down by 6%;
  • The demand for housing in the GTA is not only strong but “stronger than perceived” due to “undercounting of the number of non-permanent residents”;
  • Government intervention to prevent the house prices to grow at this rate, such as foreign tax policy and new mortgage rules do not make a significant difference in an atypical market such as the GTA

Report Conclusion:
  • An increase of supply of rental units is desperately needed in the GTA for a “real and lasting change”;
  • The GTA’s rental market has “never been hotter” with average rent rising by a record of almost 12%;
  • The new wave of renters (young families) will need “stability of long-term renting”;
  • For builders in the 416 area, the gap between the profitability of condos and profitability of purpose-build is very narrow; on surplus land, it makes even more sense to favour purpose-built;
  • Incentives from the government on new rental projects will make the difference between an “affordable and an unaffordable GTA housing market”: expediting the approval process for purpose-built projects, allowing higher intensification rates and cutting the HST will ultimately encourage builders to complete purpose-built projects before a full-blown affordability crisis.

Wednesday, March 29, 2017

Falcon House

Over the weekend, I visited a property that is a side by side duplex, about 20 minutes walk from Carleton University.  It can be provided vacant on closing.  Currently, it rents for $1350 and $1500 per month plus utilities.  It is two three bedroom and 1.5 bathroom properties.

This property can be converted to two properties, each with 5 bedrooms and 2 bathrooms.  In this area, older, run down properties are renting for $525 plus utilities per room.  It is highly likely, this property can rent for $550 a room plus utilities.

You would need to close off a dining room into a bedroom and build another bedroom in the basement.  The basement bathroom would require a stand up shower added as well.

The price is aggressive currently for the amount of rent generated.  At $2850 in gross rents and and asking of $639,000 is high.  For more information, please contact me by clicking here... 

Friday, March 24, 2017

Curious about the outlook for Toronto real estate market

Looking for an outlook on the near term future of the Toronto real estate market?  Which way are trends pointing?

Check out Ben Myers's lastest Market Manuscript for great information on many of Canada's top markets - please click here for real estate investing information

If you are interested in investing in Toronto real estate, please click here 

Sunday, March 19, 2017

How do housing projects get financed?

Here is a really cool video on how housing projects are financed.  If you are interested in buying pre-construction properties, please contact me here.

GTA condo market undersupplied?

The commonly-held perception that there are too many condos for sale in the Greater Toronto Area has been challenged by CIBC’s Benjamin Tal.

The lender’s deputy chief economist says that the market is actually undersupplied, acknowledging a record year for condo sales in 2016 with 27,000 units sold; but highlighting a decline of 6 per cent for new condo launches and inventory down 50 per cent to a 10-year low.

Tal says that limited supply in the 416 area is leading to more activity in the 905 area which may overtake the core Toronto market for sales this year.

The economist’s report on the GTA rental market says that younger Canadian families are accepting longer-term renting and will require more availability of purpose-built developments.

For help purchasing a property in Toronto, please click here 

For the complete article please click here

Monday, March 13, 2017

Sometimes numbers are a mess...

There isn't an agent out there, other than you, (or at least I havent seen one) who a) understands investments/numbers and b) who is willing to work through the mess to create a favourable outcome.  
Most of the agents I have spoken to - their eyes start to glaze over when I start talking these numbers. 
Really appreciate your effort!


Sunday, March 12, 2017

Why Is The Canadian Housing Market so Resilient?

A common question amongst investors and home buyers is what is going to happen to the market, when is it going to go up or down?

Did you know the reason why Canada’s housing market has been so strong is because it has terrific fundamentals? That's right! Each year 250,000 people immigrate to Canada creating a constant need for new housing development.  Check out the video ...

A tale of four 2 unit homes

Traditionally, homes with secondary dwellings are wonderful investments.  Instead of receiving one income per month from a property, you will now receive two incomes.  This lowers your vacancy risk, as one empty unit doesn't eliminate all your monthly income.

A fast growing trend amongst downsizing Baby Boomers and first time buyer Millennials is purchasing a property with multiple apartments, living in one and harvesting the rental income from the others.  The demand is rising for these types of properties, as more than just rental properties, as they can be located in non-traditional rental neighbourhoods, surrounded by single homes and having large lots, driveways and gardens.

Please let me know if any of these off market opportunities catches your interest .... click here to contact me 


Beacon Hill North bungalow

This property is offered for $489,900.  It is located in Beacon Hill North, inside the catchment area for Colonel By High School, one of the most sought after high schools in Ottawa (it has the IB program).  This home has all the legal paperwork from the city of Ottawa.  It is currently vacant, as construction just finished.  You can live either upstairs or down or rent the complete property until you are ready to move in....

Beacon Hill North luxury high ranch

Asking $499,900 for this exceptional property with granite counters, top quality throughout with high ceilings and big windows on both levels.  This home is fully permitted by the city of Ottawa.  The top unit is rented at $1700 per month and the two bedroom/1 bathroom lower level unit is available to move in.

Carlington stunner

Asking $497,900 - downstairs rented at $1800, upstairs ready for move in.  This property is on a direct down town bus route.  It features everything new, with both units having 3 bedrooms and 2 bathrooms.  Again, fully permitted and ready for either move in or renting.

Elmvale Acres

The fourth option, asking $500,000 is a stunning bungalow with a secondary suite in the basement, currently both units are rented at $1650 and $1175.  The basement is month to month, so the current tenant can be removed for owner occupying.