From the founders: what changed in two weeks
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If you have been waiting, the reason is usually rates. That flipped in two weeks: a cut looked possible when the Bank of Canada held on September 2, and markets are now betting on an increase instead, with fixed mortgage rates already up. |
Price is the part that isn't moving. The typical home price across the country has barely shifted since spring, so a seller isn't losing value by taking time to prepare, and a buyer isn't watching prices climb away. More sellers also came out early this year, ahead of a late Labour Day. |
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So a slow month is not a reason to sit still. If you were waiting on rates, that reason is weaker than it was two weeks ago, and if you need a few weeks to get ready, you can take them.
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Joel Fox
COO
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The library: worth knowing before you need it
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Three new posts on the Ownright blog this month. Each one covers a rule or a number that tends to surprise people late, and each is quicker to read now than to discover later.
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Mortgage prepayment penalties in Ontario: what they cost. Breaking a fixed-rate mortgage early usually costs whichever is greater: three months' interest, or a charge based on the gap between your rate and today's rates. Two lenders can quote very different penalties on identical balances. Worth reading before you accept a payout figure from your lender.
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Buying a tenanted property in Ontario. A tenancy normally survives the sale, and the route to getting the home empty on closing day only applies to buildings of three units or fewer, and to condos. An empty home by your closing date is never guaranteed. Worth reading if you are buying a home with a tenant in it.
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Using a power of attorney to buy or sell a home in Ontario. A power of attorney lets someone else sign for you, but many lenders approve the arrangement only under specific conditions and some decline it. Without approval in advance they can refuse the mortgage funds on closing day. Start this early if you will be away when your deal closes.
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Hot off the press: Ownright in the news
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Two places our read on the market showed up this month:
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Market snapshot: Ontario's lowest August sales in 25 years, prices flat across the country
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Sales fell 6% from last August to 13,620, running 4% below the five-year average for the month and 22.6% below the ten-year.
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The benchmark price, which tracks a typical home rather than an average, was $745,400, down 3.6% compared with last August. At the current pace of sales it would take 5.2 months to clear the homes on the market, against a long-run average of 3.1 for this time of year.
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National sales slipped 0.7% from July and were 6.9% below last August, with monthly activity largely unchanged since May.
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New listings rose 3.3% from July, reversing three straight declines, and the national benchmark price was unchanged from July and down 3% compared with last August.
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Our take: Sales have not kept firming the way July suggested. What changed in August was supply: more homes came up for sale across the country after three months of declines, which the Canadian Real Estate Association puts down to sellers starting the fall market early. More homes coming up for sale while sales hold flat means more choice for buyers, not more competition for them.
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Client spotlight: in their words
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We had a great experience with Ownright and their talented team. It was a little uncertain at first dealing mostly on-line but it turned out great. They were so good with communicating during each step of the process. If we had a question, they were fast and efficient with the response. Overall a seemless experience. We would highly recommend Alam and Benjamin in particular from Ownright.
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The Ownright advantage
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Buying or selling this year?
Get a clear, fixed-fee quote for your closing in minutes.
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