Hello again and Happy New Year,
Once again we begin a new year with all the hope, energy and plans to make it a successful and happy year.
New goals and plans often come with a new year which sometimes involves a real estate transaction. If this is true for you, feel free to contact me as I would like to talk to you about my passion, real estate.
I would like to share with you a positive change in my real estate career. This year I have stepped back from my corporate position as a company owner and I’m 100% back in sales. For eight years I shared two professional positions, but the one I was always excited about was face-to-face with you, my client. This was a huge step for me and one that I didn’t make without months of thought and discussion with my wife Maggie. Now that I have made this change I feel like a new person and my level of excitement is equal to my first years in real estate. Of course, I will remain selling at the same company; as the people I work with are true industry professionals.
Ottawa’s Real Estate Market
2010 was an interesting year. For the first six months of the year the market was red hot with homes selling in days and for record prices. Our market was hot during this period for a number of reasons, low borrowing rates and government incentives, but none more evident than the new Harmonized Sale Tax (HST) which began July 1, 2010. Consumers who were thinking of buying or selling wanted to complete their transaction before July 1, 2010 so they would not be subject to paying extra tax.
When July came, as expected, our market cooled off. Homes began taking longer to sell and buyers were reluctant to pay premium prices that were achieved in earlier months. After the summer passed consumers had a better understanding of the HST – a study showed that over 50% of the people surveyed thought the tax applied to the entire sale price of a property and not just the goods and services relating to the sale. In case you too were wondering, there is no sales tax on re-sale homes. By September sales started again and the remainder of the year was relatively active.
So why did our market bounce back? My belief is that interest rates remained low and the cost of borrowing continued to keep everything affordable even though prices were high. All in all, 2010 ended the year with an average increase in value of 7.7% (a very good return in most cases).
2011 has started strong with activity on homes in all price ranges. Royal Lepage Corporate is predicting home values will increase 3.3% this year (in Ottawa). This prediction is based on a number of factors including financial and economic conditions remaining the same, but once again real estate is considered a good investment.
You may be looking at the weather and wondering how you could possibly be thinking about real estate in the middle of winter?? Well, it’s my job to remind you that the ‘spring market’ in Ottawa starts while the snow is still deep on the ground.
I want to thank you for your continued trust and support over the past year. When you work with me, or refer others to me, I am truly thankful and inspired to work even harder to earn your business.
As always, I would love to hear from you, so feel free just to send me an email or call me at my office 613 564-0021.
Have a great year!!
Peter Sardelis CCIM