Happy new year everyone!
It is the second week of the new year and we are well immersed back into school, work and it’s time to evaluate Ottawa 2016 Real Estate Market!
In order for us to make any kind of prediction for the future, we need to look at what has happened at least in 2015 and its relation to the previous year (2014). Members of the Ottawa Real Estate Board sold 703 residential properties in December through the Board’s Multiple Listing Service® System, compared with 638 in December 2014, an increase of 10.2 per cent. The five-year average for December sales is 653. The total number of residential and condo units sold through the Board’s MLS® System throughout all of 2015 was 14,658, compared with 13,919 in 2014, an increase of 5.3 per cent. Separately, residential and condo unit sales each outperformed the 2014 numbers. (OREB)
As for the general Canada picture in real estate of 2016, national sales are forecast to reach 498,600, down 1.1 per cent from 2015 as activity in B.C. and Ontario moderates and housing market conditions soften in Alberta. Moreover, interest rates are now expected to begin rising later than previously predicted. They are expected to remain on hold until late 2016, therefore low interest rates will continue to support sales and prices in near future (CREA).
From a mortgage side of the picture, home buyers will have to put a 10% down payment on the portion of the price of a home over $500,000. Anything under $500,000 will still only require a 5% down payment. The changes are to take effect Feb. 15, 2016 (CBC).
For the rental market in Ottawa, in 2016, the vacancy rate will move down once more to 2.4 per cent. As for the resale market over the 2015-2016 period, sales of existing homes are expected to remain fairly flat with a downward trend. Employment should rise slightly into 2016 as overall economic activity stabilizes and the LRT project expands further. (CMHC)
In brief, this year is still good here in the capital to make plans with your real estate aspirations, just contact me through your most preferred way communication, and I will be happy to serve you or any of your referrals.
Author: Nilay Ertemur