August 2023 Real Estate Newsletter
Thursday Aug 10th, 2023
The last month of summer has arrived! August is typically a slower time of the year for real estate transactions. School is out, folks are away on vacation and buying/selling is put on hold for some. Interest rates remain at around 5.2% on average for a five-year fixed. Both freehold and condo prices have gone up slightly over the previous year. The rental market remains high with prices ranging from $2400-$3000 a month for the majority of townhomes and small singles throughout the city. The average days on market for July was around 39 days. Will there be another rate hike? I think it is possible and if it does happen, it could push a lot more buyers out of the market completely. If you’re thinking of buying, get your pre-approval started today to lock-in a rate and avoid losing purchasing power. If you are thinking of selling, the market is still strong and there are plenty of active buyers in the market. If you or anyone you know is looking to buy or sell, feel free to contact me for a one-on-one consultation.
What is Non-Resident Speculation Tax (NRST)?
If you are a foreign buyer or investor looking to buy a property in Ontario, you may be subject to a 25% tax on your purchase. For example – If you bought a home for $600,000, you would have to pay an additional $150,000 out of pocket, on closing. You may be exempt from paying this tax if you are a nominee, a protected person, a spouse of a Canadian citizen, or a permanent resident of Canada. If you are foreign buyer, please consult with a lawyer prior to purchasing a home.
Visit https://www.ontario.ca/document/land-transfer-tax/non-resident-speculation-tax for more information.
Things to do in August
Rod Stewart’s: North American Tour 2023 – See Rod Stewart live at the Canadian Tire Centre! The show starts at 7:30pm on August 23rd and features special guest Cheap Trick. Visit Ticketmaster.ca for pricing.
Ottawa REDBLACKS– Watch the Redblacks take on the Aloulettes on August 19th at 7pm at TD Place. Tickets can be found online at Ticketmaster.ca.
Ottawa Atletico – Cheer on Ottawa’s own soccer team at TD place as they play 5 home games between now and the end of September. Visit https://www.tdplace.ca/upcoming-events/ for the full schedule and ticket pricing.
Lansdowne Farmer’s Market – Support local farmers! Get your fresh produce, baked goods, hot meals, crafts, pantry items and more from over 75 vendors. The market takes place on Sundays from 9am-3pm at Aberdeen Square from July 2nd to October 29th.
Neighbourhood Feature – Chinatown
Chinatown is a vibrant and lively community located between Preston Street in the west and Bay Street to the east. The main commercial area is located on Somerset Street West. The area is home to many businesses from restaurants to nail salons, bubble tea shops, grocery stores, cafes, speciality shops and much more. A night market takes place from every year featuring several street vendors, dragon and lion dances, live music, martial arts, and instrument performances. Homes in the area are typically older detached and semi-detached properties built in the early 1900’s and are mostly located on the side streets off of Somerset. Prices range from the low 400’s to 1 million. Chinatown has much to offer! Check it out next time you are heading towards Centretown.
Did You Know?!
The highest mortgage rate in Canadian history was 21.75% during the later portion of 1981. Although house prices were cheaper, the cost of borrowing for a home was equivalent to the interest charges for a credit card. By the early 1990’s, rates dropped to around 12%, and 5% by the 2000’s. The lowest five-year fixed rate was in the fall of 2021 at 1.44%. Today’s typical fixed rates range anywhere from around 5.2% to the mid 6% depending on the term and lender.
As always, it would be my pleasure to assist you, your friends and family with any Real Estate needs. Please don’t hesitate to reach out with any questions!