Ottawa Real Estate market discussion

Tadalafil wrote: ↑ Weird question, but please bear with me.

What areas/ neighbourhoods in Ottawa are over represented with Asian buyers? Its no secret that Asians (specifically Chinese) have an out-sized influence in driving home prices in Canada. Consequently, neighbourhoods that attract more Chinese buyers should outperform other neighbourhoods.

I tend to see many Asians in Kanata and Barrhaven area. Are there any other pockets of Ottawa where Asians cluster? Do areas like Kanata and Barrhaven have the potential to become the new Markham and Richmond Hill or is that phenomenon exclusive to the GTA?

azmongold wrote: ↑ Almost every house that's going up in Ottawa is using Sellers Direction. That shows you how hot the market is in Ottawa. They are being sold for above asking guaranteed

skeet50 wrote: ↑ Doesn't show me anything. The process used to list the house does not indicate to me whether or not the market is hot. Being sold over asking isn't an indication either as all you have to do is list below market value and you are almost certain to get sold above asking.

A hot market to me is based on results. Are prices significantly higher than normal. The historical yearly price increase in Ottawa is currently about 5.74%. A hot market for me would have yearly price increases that significantly pass 5.74%. Last year's price gains didn't even meet the 5.74%, so below average year. As a homeowner, I am hopeful that this year's gains will surpass last year's. We need above average gains just to make up for ground we lost since 2011.

michelb wrote: ↑ I do think you're right to say that properties selling above asking price isn't actually a sign of a strong market and agree with you that ultimately, price increase between comparable homes is what dictates the strength of the market.

That said, it does look pretty strong. Looking at the past 100 sales in Ottawa (includes rural), which was over the past couple of weeks, almost 80% of them did sell at or above list price (which again is debatable as an indicator) and all but 1 of them sold in 13 days or less of being on the market. I have to admit that I hadn't realized it was "looking" that strong.

Jeremyl007 wrote: ↑ 5.74% is mediocre i would say... but historically on par in Ottawa... try 20-30% in Vancouver in 2016-2017, 30-40% in certain cities in China... that's why i love Ottawa.. slow and steady.. there's no FOMO and crazy money going in here... YET!

skeet50 wrote: ↑ Doesn't show me anything. The process used to list the house does not indicate to me whether or not the market is hot. Being sold over asking isn't an indication either as all you have to do is list below market value and you are almost certain to get sold above asking.

A hot market to me is based on results. Are prices significantly higher than normal. The historical yearly price increase in Ottawa is currently about 5.74%. A hot market for me would have yearly price increases that significantly pass 5.74%. Last year's price gains didn't even meet the 5.74%, so below average year. As a homeowner, I am hopeful that this year's gains will surpass last year's. We need above average gains just to make up for ground we lost since 2011.

Tadalafil wrote: ↑ Weird question, but please bear with me.

What areas/ neighbourhoods in Ottawa are over represented with Asian buyers? Its no secret that Asians (specifically Chinese) have an out-sized influence in driving home prices in Canada. Consequently, neighbourhoods that attract more Chinese buyers should outperform other neighbourhoods.

I tend to see many Asians in Kanata and Barrhaven area. Are there any other pockets of Ottawa where Asians cluster? Do areas like Kanata and Barrhaven have the potential to become the new Markham and Richmond Hill or is that phenomenon exclusive to the GTA?

michelb wrote: ↑ I do think you're right to say that properties selling above asking price isn't actually a sign of a strong market and agree with you that ultimately, price increase between comparable homes is what dictates the strength of the market.

That said, it does look pretty strong. Looking at the past 100 sales in Ottawa (includes rural), which was over the past couple of weeks, almost 80% of them did sell at or above list price (which again is debatable as an indicator) and all but 1 of them sold in 13 days or less of being on the market. I have to admit that I hadn't realized it was "looking" that strong.

michelb wrote: ↑ I do think you're right to say that properties selling above asking price isn't actually a sign of a strong market and agree with you that ultimately, price increase between comparable homes is what dictates the strength of the market.

That said, it does look pretty strong. Looking at the past 100 sales in Ottawa (includes rural), which was over the past couple of weeks, almost 80% of them did sell at or above list price (which again is debatable as an indicator) and all but 1 of them sold in 13 days or less of being on the market. I have to admit that I hadn't realized it was "looking" that strong.

Tadalafil wrote: ↑ Weird question, but please bear with me.

What areas/ neighbourhoods in Ottawa are over represented with Asian buyers? Its no secret that Asians (specifically Chinese) have an out-sized influence in driving home prices in Canada. Consequently, neighbourhoods that attract more Chinese buyers should outperform other neighbourhoods.

I tend to see many Asians in Kanata and Barrhaven area. Are there any other pockets of Ottawa where Asians cluster? Do areas like Kanata and Barrhaven have the potential to become the new Markham and Richmond Hill or is that phenomenon exclusive to the GTA?

skeet50 wrote: ↑ It isn't a sign of a hot market if it isn't pushing prices upward. Look at Jan's stats. Sales were up 16% from last Jan, but prices were up only an average of 1.5%. That would not define a hot market in my mind.

If you look at the historical numbers, up until 2012 we were enjoying average annual price increases of about 6.2%. It's the recent prolonged slow down that has dragged that number down to 5.74%. Sales numbers now are showing that there is some pent up demand, most likely as a result of the past 5 slow years, that is being met. But, it doesn't look like yet we are even back to normal, let alone exceeding it (with price increases exceeding 6.2% annually).

I just think that whenever I read comments on "hot" real estate market it seems that sometimes people have forgotten what the normal or average real estate market is in Ottawa. Is an average market a strong market? Well, we can argue adjectives back and forth, yet, imo, an average market is an average market. And, in Ottawa, at least, we are not there yet.

BTW: I am a homeowner and would love to see stronger house prices. I am cautiously optimistic. But I will tell you this, I would relish on the market numbers proving me wrong. :-)

Tadalafil wrote: ↑ Weird question, but please bear with me.

What areas/ neighbourhoods in Ottawa are over represented with Asian buyers? Its no secret that Asians (specifically Chinese) have an out-sized influence in driving home prices in Canada. Consequently, neighbourhoods that attract more Chinese buyers should outperform other neighbourhoods.

I tend to see many Asians in Kanata and Barrhaven area. Are there any other pockets of Ottawa where Asians cluster? Do areas like Kanata and Barrhaven have the potential to become the new Markham and Richmond Hill or is that phenomenon exclusive to the GTA?