Real Estate

Ottawa Real Estate market discussion

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  • Feb 21st, 2019 5:56 pm
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Deal Fanatic
Nov 24, 2013
5254 posts
1851 upvotes
Kingston, ON
fogetmylogin wrote:
Jan 17th, 2019 12:58 pm
How does the stress test increase prices?
Stress test seems to be pushing buyers "down" a property class, and increasing demand (and prices) within that class. In GTA, it was condos. In Ottawa, I guess it's towns? (People priced out of detached homes are chasing the townhomes that are available).
[OP]
Deal Addict
Nov 26, 2004
2217 posts
317 upvotes
bhushh009 wrote:
Jan 17th, 2019 9:53 am
Kanata seems to be growing. Mattamy had his basic townhome for $260k- 2 years back now same model home is $370k+..
Don't we wish we could have a time machine and go back in time. One of my former colleagues along with her friend has the foresight or balls of steel to signed for half a dozen townhouses at Abbottsville Crossing in Stittsville 2 years ago and I guess they are laughing all the way to the bank each time Mattamy increase their prices at Blackstone South.
Member
Aug 14, 2007
358 posts
136 upvotes
Ottawa
Mike15 wrote:
Jan 17th, 2019 2:08 pm
Stress test seems to be pushing buyers "down" a property class, and increasing demand (and prices) within that class. In GTA, it was condos. In Ottawa, I guess it's towns? (People priced out of detached homes are chasing the townhomes that are available).
I am totally agree with your statement. Roughly speaking, stress test force the people who were able to afford $500k properties to $400k (single to freehold townhouse), people who were able to afford $400k to $320k (freehold townhouse to freehold 3 stories townhouse), people who were able to afford $350k to $280 (3 stories townhouse to condo townhouse) and people who were able to afford $300k to $250k (condo townhouse to high-rise condo). Therefore, the price of higher-end properties do not rise as much as the $200k-$400k properties. And the high-end area (Westboro or Glebe) were not doing well (less than 5% increase) while Orleans/Barrhaven were doing very well (at least 10% increase) last year.
Newbie
Jan 13, 2018
12 posts
2 upvotes
Is there any correlation in MPAC assessment values and market value? In your experience are they roughly the same, higher, Or lower? Do you ever use the amount of property taxes to gage the approximate (market) value of a property? I’ve seen houses around $550K with property tax of over $6300 and I’ve seen houses with an asking price of $750k with property taxes of only $4900. What gives and why is MPAC so off on their assessments?
Deal Addict
Nov 13, 2013
1458 posts
558 upvotes
Ottawa
RedRumples wrote:
Jan 17th, 2019 7:35 pm
Is there any correlation in MPAC assessment values and market value? In your experience are they roughly the same, higher, Or lower? Do you ever use the amount of property taxes to gage the approximate (market) value of a property? I’ve seen houses around $550K with property tax of over $6300 and I’ve seen houses with an asking price of $750k with property taxes of only $4900. What gives and why is MPAC so off on their assessments?
Yeah there is a lot of inaccuracy in the system. I think a key factor if there was an appeal. I have done this and won twice. Both times they had over-overestimated the value by 10% but I ended up getting it reduced to below market value by about the same. When the hearing date gets close and they see they will lose they are quick to make a deal. Five years later and my neighbour who didn't appeal will have much higher taxes.

Bottom line even a very basic look at comparables will give you a better idea of how much something is worth rather than the MPAC assessment.
Deal Addict
Jan 15, 2017
1957 posts
1375 upvotes
RedRumples wrote:
Jan 17th, 2019 7:35 pm
Is there any correlation in MPAC assessment values and market value? In your experience are they roughly the same, higher, Or lower? Do you ever use the amount of property taxes to gage the approximate (market) value of a property? I’ve seen houses around $550K with property tax of over $6300 and I’ve seen houses with an asking price of $750k with property taxes of only $4900. What gives and why is MPAC so off on their assessments?
I wouldn't necessarily interpret your example as MPAC being off on their assessments. In the first example, a $550K home would have a property tax bill of about $6500 so the estimated property tax amount is correct. An estimated property tax bill of $4900 tells me that when that home was evaluated by MPAC, the value was estimated to be approximately $420K (for 2018 $420K x 0.0117 = $4914). That would be quite the gain with an asking price of $750K and worth exploring. Could be an indication of a realtor not validating the property tax amount claim or could be a sign of a home that is severely overpriced.
Newbie
May 30, 2016
49 posts
6 upvotes
Mike15 wrote:
Jan 17th, 2019 2:08 pm
Stress test seems to be pushing buyers "down" a property class, and increasing demand (and prices) within that class. In GTA, it was condos. In Ottawa, I guess it's towns? (People priced out of detached homes are chasing the townhomes that are available).
You are right on point!
Newbie
Dec 7, 2014
6 posts
Ottawa, ON
skeet50 wrote:
Jan 15th, 2019 7:59 am
One concern with the Spring Valley Trails development and all developments in that area is the proximity to the landfill on Navan Rd. It is apparently a landfill for .."solid non-hazardous Industrial, Commercial and Institutional (IC & I) waste including construction and demolition waste."
Speaking from first hand experience, you are isolated away from the landfill. Been living in the area for over 5 years and the proximity to the land fill had zero impact to quality of life.

Claridge is pretty good in this area for new builds, overall good experience buying a new build and workmanship is good. Prices are a little lower than Richcraft near by, but must pay for upgrades that the base model doesn't come with.
Deal Addict
Jan 15, 2017
1957 posts
1375 upvotes
Thought I would share an interesting experience with Cardel. Received an email last week that Cardel had 2 quick possession towns that just became available in Blackstone. The email stated, "Given the demand we have for townhomes in this community, we will be accepting offers by email until January 17 at 6pm. Any offers are to include and will be evaluated on price, preferred closing date and deposit amount on signing."

Reads to me like Cardel was hoping to create a bidding war for these towns. We went out to look at them and the viewings were with other groups of people. We were told that there were lots of other people through these homes also.

On Friday the 18th, I noticed that the 2 towns are now listed as Early Occupancies on Cardel's website. So, I am guessing that Cardel did not receive any offers for these homes. Personally, I am glad as I feared that this was another tactic by a builder to increase demand and prices for its homes. We now know that builders only release a small number of lots in each release to increase demand. Creating bidding wars for its homes is just nuts imo.
Sr. Member
Dec 4, 2016
907 posts
338 upvotes
skeet50 wrote:
Jan 19th, 2019 4:07 pm
Thought I would share an interesting experience with Cardel. Received an email last week that Cardel had 2 quick possession towns that just became available in Blackstone. The email stated, "Given the demand we have for townhomes in this community, we will be accepting offers by email until January 17 at 6pm. Any offers are to include and will be evaluated on price, preferred closing date and deposit amount on signing."

Reads to me like Cardel was hoping to create a bidding war for these towns. We went out to look at them and the viewings were with other groups of people. We were told that there were lots of other people through these homes also.

On Friday the 18th, I noticed that the 2 towns are now listed as Early Occupancies on Cardel's website. So, I am guessing that Cardel did not receive any offers for these homes. Personally, I am glad as I feared that this was another tactic by a builder to increase demand and prices for its homes. We now know that builders only release a small number of lots in each release to increase demand. Creating bidding wars for its homes is just nuts imo.
lol Blackstone is in southern Kanata. There's effectively unlimited land in the Kanata/Stittsville area. It's like GM trying to create a bidding war for the half dozen cars remaining on the lot.
[OP]
Deal Addict
Nov 26, 2004
2217 posts
317 upvotes
BlueSolstice wrote:
Jan 21st, 2019 10:58 am
lol Blackstone is in southern Kanata. There's effectively unlimited land in the Kanata/Stittsville area. It's like GM trying to create a bidding war for the half dozen cars remaining on the lot.
I'm just eyeballing the Realtor.ca website, there are currently EIGHT 2-stories freehold towns south of Hazeldean available on the MLS. Of which, only TWO are less than 5 years old.

Given the limited supply of newer/move in ready homes (Towns or Singles) available for less than $450k in the area I think it is a pretty sound marketing strategy that they were trying to pull.
Newbie
Dec 12, 2013
16 posts
17 upvotes
William W wrote:
Jan 21st, 2019 11:42 am
I'm just eyeballing the Realtor.ca website, there are currently EIGHT 2-stories freehold towns south of Hazeldean available on the MLS. Of which, only TWO are less than 5 years old.

Given the limited supply of newer/move in ready homes (Towns or Singles) available for less than $450k in the area I think it is a pretty sound marketing strategy that they were trying to pull.

Jesus I will be selling my 5.5 year old executive town home in Barrhaven and this is giving me pause on how much I should be charging!!!!!
Member
Aug 14, 2007
358 posts
136 upvotes
Ottawa
skeet50 wrote:
Jan 19th, 2019 4:07 pm
Thought I would share an interesting experience with Cardel. Received an email last week that Cardel had 2 quick possession towns that just became available in Blackstone. The email stated, "Given the demand we have for townhomes in this community, we will be accepting offers by email until January 17 at 6pm. Any offers are to include and will be evaluated on price, preferred closing date and deposit amount on signing."

Reads to me like Cardel was hoping to create a bidding war for these towns. We went out to look at them and the viewings were with other groups of people. We were told that there were lots of other people through these homes also.

On Friday the 18th, I noticed that the 2 towns are now listed as Early Occupancies on Cardel's website. So, I am guessing that Cardel did not receive any offers for these homes. Personally, I am glad as I feared that this was another tactic by a builder to increase demand and prices for its homes. We now know that builders only release a small number of lots in each release to increase demand. Creating bidding wars for its homes is just nuts imo.
Well, I just checked Cardel home. Even 2 towns are listed as Early Occupancies on Cardel's website, however, both units have a long waiting list of buyers. If you have experience to purchase property before, you know that the property is technically still on sale until both parties have firm the deal and passed the cool down period (usually from 7 to 14 days).

Personally, I don't like the idea Builder create bidding wars, it simply doesn't make sense and ruin the builder reputation. I think the Cardel's early occupancies TH asking price was the market price in Nov-Dec 2018, it is end unit with double garages, however, it is super close to the powerline, which is clearly impact the property value.
Sr. Member
Feb 18, 2010
704 posts
224 upvotes
Greely
BlueSolstice wrote:
Jan 21st, 2019 10:58 am
lol Blackstone is in southern Kanata. There's effectively unlimited land in the Kanata/Stittsville area. It's like GM trying to create a bidding war for the half dozen cars remaining on the lot.
Speaking of Cardel, does the Cardel development in Richmond (Creekside?) have deeper lots than Blackstone?

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