Once again, the Ottawa real estate market maintained its ongoing momentum of record home sales for November due to the following factors:

 Increased Record Sales In Residential Homes 

• Residential homes contributed to record sales where 945 homes were sold compared to 762 homes in November 2016, a 24 per cent increase.

• The majority of the sales were in the $300,000 and $450,000 price range, accounting for 46 per cent of the residential market.

• Buyers bought mostly:
  • one-and-a half storey single-family homes - average price - $341,756
  • two-storey single-family homes - average price - $447,076
  • bungalows - average price - $391,088
  • duplexes -  average price - $400,076
  • hi-ranch homes -  average price - $332,720

• Most of the homes bought were in:
  • Arnprior
  • Carleton Place/Perth
  • Kemptville/Prescott/Brockville
  • Casselman/Hawkesbury/Clarence-Rockland
  • Manotick
  • Stittsville
  • Central Ottawa
  • Orleans

 Record Condo Sales 

• Condos sales improved again with 294 condo units were sold compared to 230 units in November 2016, a 24 per cent increase.

• The majority of the sales were in the $150,000 and $275,000 price range, accounting for 66 per cent of the condo market.

• The most sold units were:
  • two-storey homes - average price - $225,426
  • three-storey homes - average price - $279,917

• Most of the condos were bought in:
  • Kanata
  • Nepean
  • Central Ottawa
  • Orleans

  Increased Property Values For Single-Family Homes In South & West-End Ottawa 

• Owners of single-family homes in Ottawa South and west-end Ottawa continued to benefit financially from increased property values on their homes. The top neighbourhoods in those areas were:

1. Carlingwood/Westboro - 12.3 per cent (average price: $757,700)
2. Woodroffe – 12.3 per cent (average price: $422,400)
3. McKellar Heights – 11.7 per cent (average price: $560,600)
4. Westboro/Hampton Park – 11.6 per cent (average price: $616,700)
5. Manotick/Kars/Rideau Township – 11.4 per cent (average price: $522,600)
6. Belair Park/Copeland Park - 11.4 per cent (average price: $441,300)
7. Blossom Park/Airport - 11.2 per cent (average price: $428,500)
8. Qualicum/Bruce Farm - 10.7 per cent (average price: $445,900)
9. Crystal Bay/ Rocky Point/Bayshore – 10.7 per cent (average price: $449,900)
10. Parkwood Park, Queensway – 10.4 per cent (average price: $411,400)

If you or someone you know would like to receive a detailed snapshot on how these top neighbourhoods or your neighbourhood have performed over the last year in comparison with the city as a whole, in terms of home sales, which properties sell quickly, the average number of days specific properties sell and new developments in the area, let me know.  

Tip: 

With new mortgage qualification rules quickly, or "stress test" quickly approaching, it is important to illustrate the impact of the stress test on a buyer's home purchasing power. As you see below in the example scenario, regardless of the amount of down payment a buyer has, they have less purchasing power when they are qualified at a higher mortgage rate which is significant. This significance is the difference between purchasing a single-family home versus buying a condo, or, worse off, being denied a mortgage and forced to continue paying more rent. 

To avoid becoming a victim of the stress test, here are some strategies to consider:

1. As a buyer, you will need to submit and get an offer to purchase a home accepted before December 31, 2017. As a courtesy, it is recommended to indicate in your offer to the seller that you plan to purchase their home on an agreed date next year, so that the seller has sufficient time to organize their personal and financial affairs to make the transaction go smoothly. 

2. As a buyer, if you are not ready at this time to put an offer to purchase a home, speak to your lender or mortgage professional to secure you a lower mortgage rate for 120 days, through a mortgage pre-approval, before December 31, 2017. This strategy would give you a peace of mind and sufficient time to find and purchase a home next year at a lower mortgage rate.

3. As a homeowner, if your mortgage is up for renewal soon, it is recommended to speak to your lender or mortgage professional immediately and ask them if you can break your current mortgage without paying a penalty and administrative fees, and if they can offer you a new mortgage at a lower rate. 

If you have any questions about the "stress test" or are experiencing any real estate problems or concerns that you are facing, I am here to help and support.