The Impact of 4 Rate Reductions on Prices

Have the prices gone up since the rates went down?

I looked at prices of the median residential home across the major suburbs in Ottawa within 10 days of the past 4 rate reductions to track, if any, the impact on prices.

Here’s what I found.

Question: Have the prices gone up since the rates went down?

Hypothesis: Yes, I bet they went up a bit.

Research:

Baseline: April 10th +10 days = Median Price of $691,000

Now let’s start lowering rates and see what happened!

June 5th impact? $695,000 ok. small but fair

July 24th? $672,000 probably just a one-off

Sept 4th? $680,000 better, but still lower than baseline

Oct 23rd? $677,000 that’s really weird, rates dropped .5%

Analysis: Well, it looks like in this particular instance, the prices have NOT gone up since the rates went down. Technically, they also went down.

Conclusion: In Ottawa’s suburbs, prices for residential properties have NOT gone up since the rates have started to come down. I believe this is really due to the financially conservative nature of the residents given the drop in values we saw after the Covid bubble. We’re not used to big swings in value like that, and I think it put us on our heels. People are still being very careful with their spending.

There you have it. I’m honestly surprised as I at least suspected a 20K rise in the average price. Nothing big, but enough to show that people are at least opening up their pocket books just a little more.

Seems that’s not the case.

If you have any questions let me know 🙂

Suburban Transormation -The Rise of the 15 Minute Neighbourhood

Earlier this week I went to a Public Consultation regarding the City’s new proposed Zoning Bylaws, and I confirmed that there are MASSIVE CHANGES coming to our suburbs.

Long story short – 4 Units or more allowed in every home, and mixed use buildings on main roads around transit hubs. What that looks like is significantly more multi units and local mom and pop shops up and down the main streets in neighbourhoods.

The City calls this ’15 minute Neighbourhoods’, which basically promotes all amenities and essential services within a 15 minute walk from your front door.

Some people say this is a marvel in urban planning, and will make for better local economies and the environment. Others say it’s a Communist ploy to control our every movement and slowly suffocate us into slavery.

Personally, I think it’s awesome. I think it will increase housing supply, it will give home owners more ways to earn income, it will spur the economy and allow a lot of small businesses to flourish, and will give investors or all types more opportunities to invest. Pretty awesome!

The City is hoping to have this all finalized by the end of 2025, and then it’s time to watch our suburbs boom!

What do you think?

What Makes a Good Location?

For our Suburban Buyers, finding a good location can often be tricky. It isn’t enough to be in a ‘good’ suburb – you ideally want to be in the most favourable part of it. So what exactly makes one part of a suburb more favourable than others? Here I’ll give you a few great examples to look out for.

First of all, we need to acknowledge that a suburban buyer often has a family that needs and values certain things. Safety being the most important, then proximity to recreation being second, and finally proximity to amenities and transportation being third. Let’s go through those one by one.

First – Safety. One aspect that makes a good, SAFE location for a Suburban Buyer is one that has little to no traffic so that their kids can play or even wander in the street without panic. Every parent wants their kids to be able to play street hockey, ride their bikes, or throw a ball in the street and feel safe doing so. The peace of mind that a location like a base of a crescent provides makes a very particular lot even more desirable. Suburban Buyers would also like to be on a street or block where the other homes are at least as nice and as big as theirs. When neighbouring homes are of a poorer quality (build, look or upkeep) there are generally poorer standards in the area – which can make them feel unsafe.

Second – Proximity to Recreation. Being right next to a park or a sports field gives Suburban Buyers a place to get some space and exercise, and to feel safe with their kids while they do the same. As long as these places are well kept and attract other similar people – this is a massive bonus that makes a home worth even more.

Finally – Proximity to Amenities and Transportation. The trick here is to think of these like your in-laws. You want them close – just not next door. Around the block, a few streets away is perfect lol. Suburban Buyers want the convenience of being able to run out and get some food or whatnot, and don’t want to have to be stuck in traffic for 15 minutes just to go 1 mile down the road doing it. Many suburbs get so developed that getting to the highways or rapid transit stops are easily 25-30 minutes on average. God forbid someone has to take a bus or two just to get OUT of the suburb – time adds up quick.

So if you are a Suburban Buyer thinking of WHERE you want to be in your preferred suburb, I would strongly consider these three items I’ve mentioned above, or at least be very clear about what it is you are looking for.

Too often I’ve seen buyers more focused on a few thousand dollars as their main driver when it comes to finding a home, and I would hate for you to be lured into thinking that would be the most important thing in the home where you’ll be spending the next chapter of your life.

Market Update – Orleans

 

Hey Everyone,

In this segment I’m going to go through the beginning of the Suburb Series, which means this week I’m going to go through the stats year over year for Orleans, and in the coming weeks you’ll see me and my team go through Barrhaven, Kanata, Stittsville, Nepean etc.

Here goes for Orleans:

Year over year, prices were DOWN 2% on average.

For the same time period, days on market were UP 46% on average.

Here are the stats:

 

April 2015

Detached   113 @ 443K in 31

Towns       54 @ 311K in 26

Condos       41 @ 311K in 47

 

April 2016

Detached   125 @437K in 41

Towns         55 @ 309K in 33

Condos       34 @ 219K in 51

 

What does this mean? If you are thinking of selling, you need to invest in a GOOD agent who can do some damage control and make sure you are getting as much money as possible. If you are looking to Buy, it’s a GREAT time to buy as prices are down on average and sellers are hurting a bit.

If you want some specific information on any type of home in any type of area – please call me at (613)739-5959 or email at Mevans@evanselattar.com

 

See you soon!