Real Estate

Ottawa Real Estate market discussion

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  • Oct 18th, 2019 12:49 pm
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Deal Fanatic
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Dec 27, 2009
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Ottawa, ON
William W wrote:
Feb 13th, 2019 6:54 am
I think there is the Kanata Lake effect.

Personally, I consider all ritzy neighborhood in Ottawa are located inside the Greenbelt. They are the Rockcliff, Glebe, Westboro, Rothwell Height, Alta Vista/Faircrest Height, Dows Lake, Civic Hospital, Island Park, etc where there are a number of multi million dollars home in the area . And there are also pockets of very exclusive neighborhood in Manotick, and Cedarview area in Barrhaven with an entire streetful of million dollars home.

But apparently some of the people I know , they don't just live in Kanata, but they stress they lives in Kanata Lake, not the cookie cutter massive subdivision, but a master planned community on par with the neighborhoods I mentioned earlier.
I love our area (Fallowfield Village) because nothing is cookie cutter. Huge lots, custom houses, beautiful setting, close to 416 (so just zip in to work). That to me is worth it. Not some cookie cutter planned community.
Newbie
Dec 12, 2013
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As I have previously mentioned in this thread, I am going to be selling my executive townhome this year and have been following the market like a hawk... I don't know what is going on anymore with the pricing... Can town homes actually be selling for this much?

House 1

and

House 2
Deal Addict
Jul 4, 2004
4818 posts
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Ottawa
StefanW499 wrote:
Feb 13th, 2019 11:42 am
As I have previously mentioned in this thread, I am going to be selling my executive townhome this year and have been following the market like a hawk... I don't know what is going on anymore with the pricing... Can town homes actually be selling for this much?

House 1

and

House 2
A house is worth whatever someone is willing to pay so it's not always obvious to say how much a property is worth but you have to be a careful when looking only at list price. Anyone can list a property for however much they want. Obviously that doesn't mean that they'll get their price (in this case, the second is CS (it's also an end-unit), the first is still on the market (and it's assessed value is a bit less than the first). If you are planning on selling, what you really need to know is how much comparable homes sold for.
Last edited by michelb on Feb 14th, 2019 10:38 am, edited 1 time in total.
Deal Addict
Nov 13, 2013
1655 posts
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Ottawa
StefanW499 wrote:
Feb 13th, 2019 11:42 am
As I have previously mentioned in this thread, I am going to be selling my executive townhome this year and have been following the market like a hawk... I don't know what is going on anymore with the pricing... Can town homes actually be selling for this much?

House 1

and

House 2
Are you tracking solds? Or just listings? There is no magic max price for a townhouse. E.g.

https://www.realtor.ca/real-estate/2028 ... stingLink‬
Deal Addict
Jan 15, 2017
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fogetmylogin wrote:
Feb 13th, 2019 4:48 am
And Yet there website says both towns and SFHs are sold out. I know some people work in Kanata so that is different but otherwise I really don't understand why anyone would pay that much to live so far away.
They're releasing 7 new homes soon. Won't be on the website yet. People who are registered with them got the option to buy early.
Deal Fanatic
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Dec 27, 2009
6816 posts
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Ottawa, ON
StefanW499 wrote:
Feb 13th, 2019 11:42 am
As I have previously mentioned in this thread, I am going to be selling my executive townhome this year and have been following the market like a hawk... I don't know what is going on anymore with the pricing... Can town homes actually be selling for this much?

House 1

and

House 2
Yes they are. I know townhouses in Kanata sell like hotcakes. Good luck with your sale!
Deal Addict
Jan 15, 2017
2542 posts
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William W wrote:
Feb 13th, 2019 6:54 am
I think there is the Kanata Lake effect.

Personally, I consider all ritzy neighborhood in Ottawa are located inside the Greenbelt. They are the Rockcliff, Glebe, Westboro, Rothwell Height, Alta Vista/Faircrest Height, Dows Lake, Civic Hospital, Island Park, etc where there are a number of multi million dollars home in the area . And there are also pockets of very exclusive neighborhood in Manotick, and Cedarview area in Barrhaven with an entire streetful of million dollars home.

But apparently some of the people I know , they don't just live in Kanata, but they stress they lives in Kanata Lake, not the cookie cutter massive subdivision, but a master planned community on par with the neighborhoods I mentioned earlier.
I know several former new home sales people and they tell me pricing is based mostly on demand. If they have more sales than expected, up the prices. If they sell out, up the prices. Sometimes it works, sometimes it doesn't. It will always reach a point in which it doesn't work and then they just wait, or, if they are trying to encourage sales, they offer incentives and early occupancy bonuses.

Right now there appears to be a huge difference between price increase in new builds and price increases in the resale market. Part of that I believe is attributed to new builders limiting supply and increasing demand. It's kinda genius when you think about it. The builders already know before they start a new community or phase handy about when it will finish. If just changing when they release the homes means higher prices, why not?
Member
Aug 6, 2011
472 posts
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skeet50 wrote:
Feb 13th, 2019 1:48 pm
I know several former new home sales people and they tell me pricing is based mostly on demand. If they have more sales than expected, up the prices. If they sell out, up the prices. Sometimes it works, sometimes it doesn't. It will always reach a point in which it doesn't work and then they just wait, or, if they are trying to encourage sales, they offer incentives and early occupancy bonuses.

Right now there appears to be a huge difference between price increase in new builds and price increases in the resale market. Part of that I believe is attributed to new builders limiting supply and increasing demand. It's kinda genius when you think about it. The builders already know before they start a new community or phase handy about when it will finish. If just changing when they release the homes means higher prices, why not?
i thought supply is better on the new builts?
resales house don’t increase much because of the
buyers can turn to new builts?
Member
Aug 6, 2011
472 posts
173 upvotes
skeet50 wrote:
Feb 13th, 2019 1:48 pm
I know several former new home sales people and they tell me pricing is based mostly on demand. If they have more sales than expected, up the prices. If they sell out, up the prices. Sometimes it works, sometimes it doesn't. It will always reach a point in which it doesn't work and then they just wait, or, if they are trying to encourage sales, they offer incentives and early occupancy bonuses.

Right now there appears to be a huge difference between price increase in new builds and price increases in the resale market. Part of that I believe is attributed to new builders limiting supply and increasing demand. It's kinda genius when you think about it. The builders already know before they start a new community or phase handy about when it will finish. If just changing when they release the homes means higher prices, why not?
i thought supply is better on the new builts?
resales house price don’t increase much because of the buyers can turn to new builts?
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Dec 27, 2009
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cyberfreak123 wrote:
Feb 13th, 2019 2:14 pm
i thought supply is better on the new builts?
resales house don’t increase much because of the
buyers can turn to new builts?
You can't replace the fact that resales usually come with far more land. Also, you don't have to live in treeless, mucky, noisy construction zone for God knows how long. The character of a more mature neighbourhood can't be replicated to me.
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Aug 6, 2011
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Chickinvic wrote:
Feb 13th, 2019 2:27 pm
You can't replace the fact that resales usually come with far more land. Also, you don't have to live in treeless, mucky, noisy construction zone for God knows how long. The character of a more mature neighbourhood can't be replicated to me.
My wife has several friends living in Barrhaven, so I go there once a month for different parties. I can't speak for the "nice" streets, but the area I go to , I'm not impressed. Houses are so close to each other, and some streets are so narrow , barely any parking space on streets.
The good things are bigger houses and they're fairly new, so don't need to fix things. Sure, price is good for the size of the house.
Personally, for my next house in which I'll live in, I'll not be afraid of buying an old house in a mature neighbourhood and fix it up to my taste. With some life experience, I know a lot of things can be fixed in a house and I learn to recognise dangerous things to avoid.
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Jun 11, 2006
275 posts
192 upvotes
I live and work in Kanata, so while I know it is a suburb and far from downtown, I would pay a premium to live here just so my commute is short (currently about 10 min). For family life, everything we need (groceries, library, rec center, parks) is all within 5-10 min. I think others must feel the same which drives the prices up (high tech pays well, so there are plenty of paying customers)

There was a house listed in Richardson Ridge for over 1 million! Its not on MLS anymore, so I assume it sold, but I'd love to know how much it sold for! As much as I like Kanata, I still think that's crazy. Same with the 520+ towns. Yikes!
[OP]
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Nov 26, 2004
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cyberfreak123 wrote:
Feb 13th, 2019 2:16 pm
i thought supply is better on the new builts?
resales house price don’t increase much because of the buyers can turn to new builts?
If you take real estate in straight accounting terms, it is made up of two components. Building and land. Buildings depreciate and land appreciate. In my mind, this is how I explains why resale goes up at a slower rate because the appreciation of the land value is partially being offset by building depreciation.

One can especially see this effect during the stagnation years. The inside greenbelt homes in established neighborhoods tends to weather pricing pressures better because the building has more or less been all depreciated or people who bought these homes were mainly paying for the land components. And condo done especially poorly during the last down turn, simply because increase of land prices can not off set the depreciation of the building components.

Of course there are other factors, such as builders ability to collude or coordinate efforts to raise prices, whereas the resale market is driven by commission sales people where their main interest is to have a quick sale and collect a commission, but not necessarily pushing price up for the sellers.
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Jul 4, 2004
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stack1 wrote:
Feb 13th, 2019 3:19 pm
I live and work in Kanata, so while I know it is a suburb and far from downtown, I would pay a premium to live here just so my commute is short (currently about 10 min). For family life, everything we need (groceries, library, rec center, parks) is all within 5-10 min. I think others must feel the same which drives the prices up (high tech pays well, so there are plenty of paying customers)

There was a house listed in Richardson Ridge for over 1 million! Its not on MLS anymore, so I assume it sold, but I'd love to know how much it sold for! As much as I like Kanata, I still think that's crazy. Same with the 520+ towns. Yikes!
If you mean the one on Grainstone, it sold in a week for a bit under asking (There have been a few listings for over a million in the area in the past year but this is the only one that actually sold). The area certainly seems to be commanding high prices (prices have almost doubled since they were built in 2015-2016).
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Aug 7, 2018
23 posts
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fogetmylogin wrote:
Feb 13th, 2019 12:22 pm
Are you tracking solds? Or just listings? There is no magic max price for a townhouse. E.g.

https://www.realtor.ca/real-estate/2028 ... stingLink‬
The funny thing about that listing is the image they show is actually located at 1041 North River road down in overbrook.
One was listed on the market last summer (one of the end ones I believe) for around 1.2 mil.
No idea if/what it sold for though.
I guess they are just building a duplicate of that up in new Edinburgh.

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