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Orleans Home Sales: What Happened in January 2023
Orleans Marketsnapshot January 2023
For prospective homebuyers, the Orleans home market can be daunting to navigate. Prices have risen significantly over the past few years, and understanding the current trends is essential for making sound decisions when buying a home. This blog post will take a look at the Orleans home sales in January 2023 compared to previous years, so that buyers can get an idea of what to expect when looking for a house.
January 2023 Home Sales Compared To Previous Years
The Orleans real estate market saw a decline in home sales this January compared to previous years. According to data from the Ottawa Real Estate Board (OREB), there were only 140 homes sold in Orleans this month—a slight decrease from last January’s total of 161 homes sold. The average sale price came out to $650,753—a significant decrease from January 2022’s average sale price of $766,411.
Year-Over-Year Statistics
When comparing January 2023 with January 2022, it is clear that there has been a significant decline in the number of homes sold and their corresponding prices. In January year over year, terrace homes or stacked homes saw a sale price decrease of $96,067, townhomes or row homes saw a decrease of $98,163 and the most significant price decrease came in single detached homes which were down $165,379 compared to the previous January sales. These figures suggest that now might be a good time for buyers looking for deals on homes in Orleans as prices have dropped enough to make them more affordable than they were last year.
Mortgage Rates and Interest Savings
In addition to lower prices on homes, fixed mortgage rates are also currently low compared to variable rates which means buyers can save even more money on interest payments over the amortization period. According to data from Ratehub Canada, the current five-year fixed rate mortgage rate is 4.44%, compared to 5.55% for a variable mortgage rate —a savings of 1.11%. Buyers who take advantage of these lower fixed rates could save hundreds or even thousands of dollars over the life of their loan depending on how much they borrow and how long they keep it for and will have a peace of mind that their rates won’t be going up during the 5 year term.
Orleans home sales are down significantly compared to last year but prices remain relatively stable despite the pandemic’s impact on the housing market overall. Now may be an excellent time for prospective buyers who are interested in purchasing a home in Orleans as prices have dropped since last year due to decreased demand for housing inventory in the area and the multiple Bank of Canada interest hikes. With careful research and analysis potential buyers can find great deals on properties if they know where to look and take advantage of current conditions in the market today! Call Marc-Andre to help you find the right home for you!
Understanding the Pros and Cons of Single Detached Homes in Orleans, Ontario.
Are you considering buying a single detached home in the east end suburb of Ottawa, Orleans? Whether you’re looking for an old or new construction, 3 bedrooms or 4 bedrooms, it’s important to know all the pros and cons that come with owning a single detached home. This blog post will help potential buyers understand what to expect when purchasing this type of residence.
Pros of Single Detached Homes
One of the main advantages of owning a single detached home is privacy. Since your property is not attached to any other homes, you don’t have to worry about sharing walls with your neighbors. This also means that you won’t get as much sound coming in from outside since there are no common walls. You can also enjoy more outdoor space since detached homes usually come with yards and gardens. And if you’re looking for additional peace of mind, most single detached homes are owned outright by their owners, so there’s no need to worry about shared services like those found in condos and townhomes. In Orleans, there are multiple different types of single family homes, such as two-storey detached, bungalows and split levels.
In the older neighbourhoods, such as Convent Glen, Queenswood Heights and Chapel Hill you will find large lots for most single detached homes. Whereas in the newer neighbourhoods, such as Chapel Hill South and Avalon with the new builders, the lots will be significantly smaller and may lack any backyard space other than a bbq and little patio.
Another benefit to owning a single detached home is design flexibility. With a detached home, you have more freedom when it comes to customization and renovation options compared to attached dwellings such as condos and townhomes. You can make changes both inside and out as long as they meet local zoning ordinances. Single family homes in Orleans offer plenty of possibilities when it comes to renovations. Older dated homes can typically offer a blank slate for a new Buyer or contractor looking for a flip. A lot of homes in Orleans also have swimming pools which is a consideration when purchasing a single family home.
Cons of Single Detached Homes
The biggest con associated with owning a single-family home is the cost. Not only will you have to pay for the purchase price of the house itself but also for any renovations or upgrades you want to do down the line (provided they meet local regulations). Additionally, since these types of homes are not part of a HOA or community association, homeowners will be solely responsible for all maintenance costs such as lawn care and repairs on roofs or other areas around the house. These expenses can add up quickly over time so it’s important for potential buyers to consider these costs before making an offer on a single-family property. Other considerations in older neighbourhoods in Orleans include, whether or not the garages are attached or detached from the home.
You should also keep in mind that finding builders who specialize in constructing single family residences can be difficult depending on where in Orleans you’re looking for one – especially if your budget isn’t too high – so do your research beforehand! Orleans is still growing and there are many future developments planned by multiple different builders, such as Minto, EQ, Mattamy, Richcraft, Caivan, Ashcroft and more.
Purchasing a single detached home in Orleans has its benefits and drawbacks; however, understanding what goes into owning one ahead of time can help make sure that potential buyers know what they’re getting into before they make their decision! Keep privacy, design flexibility, cost considerations, and builders availability in mind when making this big decision – this knowledge will go a long way towards helping make sure that your experience is positive! Make sure to contact me, Marc-Andre Perrier with Century 21 Action Power Team, to help you navigate all the different options when it comes to purchasing a single detached home in Orleans.
How Bank of Canada’s Interest Rate Hike Affects Me?
Bank of Canada Interest Rate Hikes in 2022
Just in, the Bank of Canada (BoC) raised their key interest rate from 4.25% to 4.50%. This increase in rates can affect mortgages especially variable mortgages and the amount of borrowing power people have when applying for a loan. However, it’s important to know that many lenders are still offering great rates despite the hike. Let’s take a closer look at how this affects potential borrowers.
Mortgage Payments Increase
The BoC’s decision to raise interest rates means that mortgage payments will become more expensive for people with variable-rate mortgages or lines of credit. For those who are on a fixed-rate mortgage, however, the effect may not be felt right away as they have already locked in their rate and payment schedule. They will see the effects once their mortgage renewals come up.
Reduced Borrowing Power
When applying for a loan or mortgage, lenders typically consider your debt-to-income ratio. This is calculated by dividing your total debt payments by your gross income over a 12-month period and multiplying it by 100; if it exceeds 40%, you may be seen as too much of a risk and have difficulty being approved for certain loans or mortgages. With higher monthly payments due to an increased interest rate, this can affect your borrowing power since you’re paying more towards debt each month than before the rate hike.
Great Rates Still Available
Despite the recent increase in the BoC’s key interest rate, many lenders are still offering great rates on loans and mortgages, especially on a locked in 5 year mortgage—which could help offset some of those expensive mortgage payments. Before deciding on a lender or loan package, make sure to shop around so you can find one that works best for you; if you see an offer that looks too good to be true, check out its fine print so you don’t get hit with any fees down the line! Also try and negotiate your rate as much as possible.
The Bank of Canada’s decision to raise their key interest rate has had an impact on mortgages across the country—variable-rate mortgages and lines of credit will likely experience higher monthly payments due to an increased interest rate while potential borrowers may find themselves with reduced borrowing power. However, there is some good news: many lenders are still offering great rates on 5 year fixed loans and mortgages so make sure to shop around for one that fits your budget! Contact me if you’re looking to Buy, Sell or Rent in Orleans or surrounding regions.
A Look Back on the Real Estate Market in Orleans Ontario – Statistics and Trends to Watch
As a homeowner in Orleans, Ontario, it is important to be aware of changes and trends taking place in the local real estate market. Looking back at how the market has changed from year to year can give insight into future trends that might impact your home-related investments. In this blog post, we will examine some key statistics from recent years surrounding Orleans’ real estate landscape – so you can make better-informed decisions about any potential investments or sales you may consider in the near future!
Sales in Orleans Ontario in 2021
Sales in Orleans Ontario in 2022
As we look back on 2022 and compare it to 2021 we can see some key insights. As these snapshots show, home prices for almost all types of homes in Orleans, have increased in 2022.
Towards the end of the year we have noticed some key performance indicators that indicate a significant trend in the market. For instance, days on market for homes have increased from 7-14 days, all the way up to 47 days in December, which is the similar days on market that we had in 2018. Consequently it is taking longer to sell homes. A balance market days on market is anywhere between 60-90 days on market. Another indicator is that there is more inventory and less sales volume. Months of inventory have increased from 0.5 during the first half of 2022, to end around 2.5.
The previous two years have been very turbulent in Orleans with price increases as we have never seen before. I anticipate that 2023 will be a more balanced market, but with the caveat that well priced turnkey ready homes will still be sought after and competitive, whereas homes that are dated and need work, and or tenanted homes will take significantly longer to sell. With the increase in inventory Buyers will have a better opportunity to make an informed purchase and have some choice in which property they will want to purchase. Sellers will have to be increasingly patient and willing to negotiate with Buyers. It is more important than ever to have a qualified real estate agent to help navigate, educate and negotiate on your behalf. Feel free to reach out to me, with any questions.
Also if you would like more detailed information about the Ottawa statistics, feel free to reach out for a full guide.
The Real Estate Market is Changing – What Should We Expect Next? Is it Still Time to Sell?
The Real Estate market is always changing. It’s important to stay up-to-date on the latest trends so that you can make the best decisions for your family and your future. Right now, there are a lot of changes happening in the Ottawa market – what does this mean for you? Should you sell now, or wait until things settle down? In this blog post, we will explore the current Real Estate climate and help you make the best decision for your needs.
In the last couple of months, we have seen a change in the Ottawa Real Estate Market. The Bank of Canada increased interest rates as well as the government regulations working together to quell high demand is starting to take effect.
Here is what we are currently seeing.
- Reduction in sold properties
- Less bidding wars, multiple offers, and more conditional offers being accepted
- Increase in days on market
- Increase in inventory compared to month over month
- Sellers are still expecting high prices
- Properties are still priced at record highs
What can we anticipate seeing in the next few months? I believe that homes that are turn-key ready, newer, and have a wow factor will continue to sell very well, and in multiple offers for top dollars. Whereas in January and February, we were seeing average and below-average homes selling for top dollar in multiple offers without conditions, these homes will be sitting on the market longer and will end up selling for less than anticipated. This is a principal reason to hire a professional Real Estate agent to make sure your home is properly organized before listing.
A lot of people are wondering if now is still a good time to sell. Real Estate is cyclical, it always has been and always will be. So, the answer is – it depends. If you need or want to move for work, family reasons, or just because you are ready for a change – then absolutely! Contact me to discuss and help get the process started!
Where is the Ottawa Real Estate Market Heading?
Ottawa Real Estate
The Ottawa real estate market is a constantly evolving and complex system. Many people are asking questions about the current state of the market and what it means for them. In this blog post, we will take a look at some of the most common questions that we are being asked right now. We will also provide our expert opinion on what to expect in the coming months. If you are thinking about selling your home, or if you are curious about how the market is affecting buyers, then this post is for you!
What are we currently experiencing in the market? The last 6-8 weeks have seen a cooling off of sales. As per the Ottawa Real Estate Board, sales were down 23% in April as compared to last year. Although prices do remain high. We are seeing an increase in months of inventory and days on market for properties. Some contributors to this are the surge in the Bank of Canada’s key interest rates, the new federal mortgage rules that came into effect, the implementation of a two-year foreign ban, and some uncertainty around the economy.
The Bank of Canada has already increased the key interest rates multiple times and forecasting additional interest rate increases in the next few months to temper inflation. The considerable issue with this is that Buyers, still have to qualify with the mortgage stress test, therefore 2% higher than the current market borrowing rate. For example, if the rate is 4%, Buyers have to qualify at 6%, which significantly reduces their borrowing power.
What happens next? Will there be a recession, a correction, or even a bubble?
Unfortunately, all signs point towards at least a market correction. A market correction is defined as a reduction in the value of an asset or assets, usually real estate and stocks, to more accurately reflect the true worth of those assets. This can happen for several reasons, but typically it is due to an over-valuation of those assets.
In the current market, we have seen over-valued Real Estate prices, that have continued to increase at an unsustainable rate. Another factor is that inventory is still low, but we are seeing in Ottawa an increase in months of inventory and days on market. We are seeing key interest rates continue to rise, which reduces borrowing power for Buyers. Further, all levels of Government are doing everything in their power to make housing more affordable and to increase inventory.
It is important to remember that these are just a few of the many factors that can affect the real estate market. When making any decisions about buying or selling, it is important to consult with a professional Real Estate Agent who can help you understand these factors and will ultimately impact your specific situation.
If you have any questions about the Ottawa real estate market please contact Marc-Andre Perrier, with Century 21 Action Power Team!
Choosing a Neighbourhood in Orleans
When it comes to choosing a neighbourhood in Orleans Ontario to move into, there are a lot of factors to consider. Older parts of the city are known for their charming character and unique architecture, with large lots that give plenty of space for outdoor activities or gardening. Most of these types of homes can be found in Queenswood Heights, Convent Glen and Chapel Hill North. However, newer suburbs tend to be more developed, with smaller lots and less green space. These neighborhoods can feel cookie-cutter and lack the charm of their older counterparts. These homes will be located in neighbourhoods such as Avalon, Mer Bleu and Cardinal Creek.
Ultimately, the choice between an older or newer part of Orleans will depend on what’s important to you as a homebuyer. Those looking for a quiet retreat with plenty of open space may prefer an established neighbourhood full of mature trees and winding streets, while those seeking easy access to amenities and conveniences could find more success in the suburb. Typically older homes require some updating and more work in order to make it your own, whereas newer homes do not require as much updating. Some common differences are as simple as layout, open concept in newer homes versus closed concept in older homes. So whether you’re searching for wide-open spaces or all the convenience an urban center can offer, there are plenty of options in Orleans Real Estate – you just need to find the right one for you! Use the neighbourhoods tab on my website to search all of them located in Orleans.
Contact me, Marc-Andre Perrier, Orleans Realtor, to help with your search!
Importance of a Budget when Buying a Home
When it comes to buying a home, having a solid real estate budget is crucial. In Orleans, homes typically sell for over $400,000 and we’re seeing more and more selling over $1,000,000. Therefore it is extremely important to set expectations and have taken the necessary budgeting steps prior to starting your search. This involves getting pre-approved by your lender, understanding your mortgage options, and knowing what your home will sell for prior to making an offer. In addition, it’s important to be aware of all the different types of closing costs in Ontario and how they can affect your purchase. And finally, if you’re thinking about taking out an insured mortgage or a non-insured mortgage, and also whether to go with a fixed mortgage versus a variable mortgage it’s important to understand the differences between these types of financing. Appraisals are also overlooked by a lot of Buyers which can be pivotal to any purchase. Overall, real estate is an extremely complex field that requires careful planning and attention to detail at every step of the process. So if you’re considering making an investment in property, do your research and work closely with an experienced Real Estate agent who can guide you every step of the way.
Please contact Marc-Andre Perrier, Orleans Real Estate Agent with Century 21 Action Power Team to help guide you through this complex process.
Frequently Asked Questions About Townhomes
Are you considering a townhome as your next home? If so, you’re not alone! Townhomes are becoming increasingly popular across the country and especially in the hot Orleans Real Estate Market. In this blog post, we will answer some of the most frequently asked questions about townhomes. We’ll cover everything from location and affordability to features and floor plans. So whether you’re just starting your search or you’re almost ready to make an offer, read on for answers to all your questions!
One of the most commonly asked questions about townhomes is the types of ownerships, my previous blog addresses and discusses these different types of ownerships. We will address other common questions before you begin your search for a townhome, it’s important to have a realistic idea of your budget. Orleans townhomes can range widely in price depending on location, size, age, and features about the fees associated with townhome ownership, what type of maintenance is required.
Other common questions about freehold townhome ownerships are about the shared driveway, shared lot, easements, and other legalities that may arise when you purchase a townhome. It is extremely common for townhomes to have backyard easements, for neighbours to use when they need to cut their grass. Middle units normally do not have as many easements if at all any, whereas the end units typically have multiple neighbours allowed to walk through.
Another frequently asked question, is whether or not we’ll be able to hear our neighbours through the wall. Orleans townhomes are usually pretty good about sound-proofing, however, it’s still important to be aware that you might have neighbours on both sides of you. The best way to alleviate this is to have a friendly relationship with your neighbours and try to get along…
If you have any questions about Orleans townhomes, please contact me and I would be happy to help!
Different Type of Townhome Ownership in Orleans Ontario
What are the common types of townhome ownerships available?
When it comes to townhomes, there are three main types: freehold townhomes, condo townhomes and home association ownership townhouses. Each type has its own set of pros and cons that you should be aware of before making a purchase. In this blog post, we will take a closer look at each type and help you decide which is the best option for you!
Freehold Townhomes
Freehold townhomes (no additional fees) are the most popular type of townhome in Orleans. They are also the most expensive (averaging approximately $670,000 so far in 2022), but they offer more privacy and freedom than the other two types. In Orleans there are townhomes in almost every main neighbourhood, from Avalon, Queenswood Heights, Fallingbrook, Mer Bleu, and more. The biggest downside to freehold townhomes is that you are responsible for all maintenance and repairs. Also, there are typically easements (right of way) in the backyards for your neighbours to go through to get to their yards.
Condo Townhomes
Condo townhomes are a less expensive option. They are popular with first-time buyers and downsizers. In Orleans, condo townhomes start in the low $400,000s. The monthly condo fee covers items such as building insurance, common area maintenance, and snow removal. Condo townhomes also offer more amenities than freehold townhomes, such as a gym, party room, tennis courts and sometimes even a pool. With Condo townhomes sometimes the fees also cover some of the outdoor maintenance of your home, such as the roof and siding repairs. The downsize with condo townhomes is that condo fees can add up, and if the condo reserve fund isn’t managed properly levies and special assessments can be expensive. Pro hack, when buying always include a Status of Certificate review with any purchase.
Home Association Ownership Townhomes
Home Association Ownership townhomes are different than condo townhomes. In Orleans, Home Association Ownership townhomes start in the mid to high $400,000s. With Home Association Ownership townhomes there is a monthly fee that covers items such as building insurance, common area maintenance and snow removal, and visitor parking. These are similar to condo fees but without any fees covering the home maintenance itself. HOAs are typically way less expensive than condo fees and are typically found on private streets. The main reason for HOA townhome fees is that the builder built the homes on a private road, which the City of Ottawa does not maintain, therefore a private snow clearing company has to complete the work.
If you’re looking for more information about these types of townhomes please contact Marc-Andre Perrier, Orleans, Real Estate Agent with Century 21 Action Power Team. I would be happy to discuss with you further and help you find the perfect home for your needs!
