Ottawa, January 5, 2012 – Members of the Ottawa Real Estate Board sold 699 residential properties in December through the Board’s Multiple Listing Service® system compared with 618 in December 2010, an increase of 13.1 per cent. The five-year average for December sales is 611. The total number of homes sold through the Board’s MLS® system in 2011 was 14,412, an increase of 1.7 per cent over 2010. The average price for 2011 was $343,701, an increase of 5.2 per cent over 2010.

Of December’s sales, 177 were in the condominium property class, while 522 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties, which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Resale home sales in 2011 were slightly above the five-year average of 14,326, and that’s really the story for the year. The market started off the year quietly, but gained momentum as we headed into spring and summer, losing very little steam during the fall and posting the best November on record, which leaves us with a very solid balance sheet for 2011,” said Past President Joanne Tibbles. “In many ways, it epitomized Ottawa’s real estate market: no dizzying highs, no dramatic lows, just slow and steady growth over the long term,” she added.

The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $332,527, an increase of 2.6 per cent over December 2010. The average sale price for a condominium-class property was $262,514, an increase of 3 per cent over December 2010. The average sale price of a residential-class property was $356,267, an increase of 0.2 per cent over December 2010. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of 2,765 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca.

Source: Ottawa Real Estate Board

Canada’s biggest banks are hiking mortgage rates for the second time in just over a month.

TD Canada Trust and RBC raised their short-term fixed mortgage rates by 20 basis points effective Tuesday while the cost of the benchmark five-year closed mortgage will jump 35 basis points to 5.69%, though lower promotional rates are available.

In March, most major lenders introduced quarter-point hikes to their five-year fixed rates.

The new rates reflect rising bond yields and the subsequent increase in the cost of funds, TD said Monday.

The housing market continues on a stable and balanced track. Sales activity is nearly 50% above the recessionary low of December 2008 and only 11% below the recovery high of December 2009. Home sales rose while prices remain on par with the previous month.

According to the Bank of Canada, the economy is picking up steam faster than anticipated. Late 2010 proved to be significantly stronger than expected, with consumers continuing to be a key component. A 17% jump in exports was the fastest-paced increase in more than five years. The strong currency is a potential concern as it makes importing Canadian exports more expensive for other countries. This metric will be closely monitored by economists and the Bank of Canada alike.

Moving forward, rising interest rates and weak job growth are factors that are responsible for keeping sales activity and price appreciation stable and slower than seen during the recovery. Mortgage regulation changes will likely spur upward momentum in home sales during the first quarter. Due to improved affordability, balanced markets, and record-low mortgage rates, there are ample opportunities for both buyers and sellers.

Michele Lerner -  Investopedia.com

If your goal is to sell your home in spring 2011, you should be prepared for a busy winter, whether or not you choose to sell on your own as a for sale by owner (FSBO) listing.

Homeowners need to prepare themselves for a home sale in three ways: physically, emotionally and financially. During the months and weeks leading to your home sale, you will need to work on all three of those areas in order to have a successful closing. Avoiding some of the following mistakes can go a long way toward having a smoother and more rewarding transaction. (For more, see our For Sale By Owner Video.)

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1. Failing to Prep Your Home for Sale

Whether you are selling on your own or with an agent, in order to attract buyers your house must be completely clean, empty of clutter and in the best possible condition. Beware of spending too much to fix up your home, since you may not get all the money back when it sells. Instead, focus on inexpensive improvements such as fresh paint, a weed-free yard, polished door handles and faucets, and clean baseboards and walls. (For more, check out The 5 Biggest Mistakes Home Sellers Make.)

2. Setting the Price Too High

Sellers who choose not to work with a real estate agent need to do their own research on what comparable homes in their area are selling for. Look at the most recent sales you can find and also check out the listing prices for other homes on the market that are similar to yours in size, location and condition in order to set a price for your home. Remember, your house will sit on the market longer, costing you time and money, if you set your price too high. The longer it stays on the market, the fewer potential buyers will look at it, since they will assume a “stale” listing will have something wrong with it.

3. Skipping a Pre-Sale Home Inspection

Savvy buyers will have your home inspected and may find issues that require repair. Sellers who have a home inspection before putting their home on the market can get their property ready before a buyer inspection, which saves time and makes your home stand out on the market as ready for move-in. (Learn more in Do You Need A Home Inspection?)

4. Setting an Appropriate Commission for the Buyer’s Real Estate Agent

Selling your home without an agent doesn’t get you completely off the hook for real estate agent commissions unless your buyer is also opting to work without an agent. If you want to attract the attention of buyers who are working with a real estate agent, be sure to offer a typical buyer’s agent commission for your area – generally about 2.5-3 per cent of the sale price.

5. Not Putting Enough Photos on the Internet

Since nearly all buyers start their home search online, they are used to checking out photos as a preview to actually choosing which properties to see in person. Make sure you have multiple photos with your listings and that the photos showcase your home at its best.

6. Not Listing Your Home on the MLS

Plenty of companies work with FSBO sellers and will put your home in the local real estate listing service for a flat fee. For a few hundred dollars (small change when it comes to the value of your home), you can market your property to thousands of buyers. (For more, check out 7 Things To Consider Before Selling Your Own Home.)

7. Not Making Your Home Available for Visitors

Selling your home is always a hassle, and FSBO sellers have it even worse, since they don’t have a real estate agent to show their home when they are not around. Make sure you are as available as possible to show your home to potential buyers and to real estate agents who are previewing homes for their customers.

8. Not Being Responsive to Potential Buyers

FSBO sellers should be sure to respond as quickly as possible to e-mails and phone calls, since any of them could be from a potential buyer. Remember that buyers are likely to be calling and visiting multiple properties, so if you wait a few days they may have found another home to buy.

9. Not Making Sure Your Buyers Are Qualified

Don’t take your home off the market until you get proof (a pre-qualification letter) from potential buyers. You lose the momentum of marketing your home and run the risk of a failed closing. (Learn more in Pre-Qualified Vs. Pre-Approved – What’s The Difference?)

The Bottom Line

The main goal for most FSBO sellers is to save the commission money that real estate agents earn. Carefully avoiding seller errors can go a long way toward ensuring that a home sells quickly and for a reasonable price while allowing the sellers to keep that commission fee for themselves. (For more, see Cut Commissions With “For Sale By Owner” Sales.)

Resource: http://www.theglobeandmail.com/