Real Estate

Ottawa Real Estate market discussion

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  • Nov 23rd, 2020 6:55 pm
Deal Fanatic
Jul 4, 2004
5697 posts
1759 upvotes
Ottawa
BlueSolstice wrote: Personally, I wouldn't make Ottawa RE predictions based on tech. Tech in Ottawa is nowhere near the same level of importance compared to the Nortel era. Ottawa RE would be fine if another tech crash happens but Trudeau stays in office. Ottawa RE would not be fine if O'Toole brings in DRAP 2.0 while tech is not affected. Shopify just don't have enough Ottawa employees to save the local RE, despite its market cap.
William W wrote: And it doesn't even have to take a mass layoff to put a damper on the Ottawa RE market. Just a simple hiring freeze will do the job as promotion opportunities become scarce and all federal employees will have to count on a below inflation pay increase of 0.25% to 0.5% per year from a deficit fighting government.
I would have to agree with that as well. Although IT / High Tech is a big part of Ottawa's economy, it's still under 10% of Ottawa's workforce so doesn't have that much affect on it. Furthermore, a large portion of Ottawa's IT community is offering services to the Federal Government and cuts to the Government have a significant impact on the health of IT industry in Ottawa.
Member
Jan 29, 2020
293 posts
318 upvotes
Shopify is pretty significant in Ottawa at the high end of the real estate market, they crossed 1000 employees 9 months ago. The high end of the market, which is full of tech workers, gets affected first in a downturn. It would be interesting to see days of inventory at the high end but the real estate boosters would never publish anything that's not in their interest. Condos are the first to decline and the last to recover.

The tech sector went from a peak in the 70 000 range around 2001, to a nadir in the 44 000 range 9 years later. So you could see a similar decline in a tech crash today. That's a lot of well-paying jobs.

A tech crash would not leave the popular Kanata/Nepean/Stittsville markets untouched - no strong reasons to live there unless you work in the area. It would also affect the Westboro area, I think there are lots of tech workers living there who are reverse-commuting.
Deal Guru
User avatar
Jun 28, 2003
10119 posts
3224 upvotes
Ottawa
cloak wrote: Are they showing the exact same bathroom for both units?!
I no longer see the ads for 1940 Michigan Avenue upper and lower level units for rent on Kijiji so I think they found tenants and good for them. They did have to drop the price for the upper unit from $2,300 to $2,200 after a week or 2 of posting to garner more interest.

I also just found a tenant for the upper unit for the bungalow we purchased a couple of months ago and I will jot down some of my lessons learned here, in the hope that existing and future landlords can find useful. And yes, this is my direct experience. I didn't copy this from TikTok or anything :). In no particular order

- I received the most amount of inquiries from the typical sites like Kijiji, Rentals.ca, Rentboard.ca, Zumper/PadMapper and various local Real Estate Buy/Sell/Rent Facebook groups that I subscribed to.

- This may or may not work for everyone but I find it useful to post a phone number in my ad where people can call or text if they have any question, rather than sending emails. If you value your privacy and don't want to be woken up at mid-night (and believe you and me, people will call at odd hours of the day, they don't like to read long ads and just want to talk and ask questions right away) then you can use a burner phone # or text app.

- When you send an application to prospective tenants through email, always follow up to ensure they receive it in their Inbox and to see if they have any questions. A couple of people told me the application landed in their Junk/Spam folder

- It goes without saying but TenantVerification and LandlordCreditBureau are invaluable tool. Small price to pay for the peace of mind.

- In today market where tenants have more choices than before, it helps to make your rental property stand out from the competition. The little things from scheduling showing based on the (serious) candidate's schedule to being more flexible with move-in date and/or pet policy to throwing in additional services like Internet (look for Rogers/Fido promo on RFD lol) or snow removal really make a difference.

- Finding a good tenant is not hard, you do your due diligence and you can (almost) always weed out the bad ones from the good. What I find hard is to say no to prospective tenants who are hard-working and honest and who want to better their life and/or the lives of their kids but the numbers just don't add up, from a financial perspective. I have empathy, as I am sure all of you here do, and I am not just out for the almighty dollars. I just have to make sure I go with the one who is not going to struggle paying rent, at the end of the day.

I am not lying to you guys, a couple of property management companies reached out to me to offer services and the thought of using them did cross my mind, not because I don't enjoy doing screening tenants and showing our property, simply because I am starting to get busy with other priorities. But the feeling of finding a solid tenant on your own, after doing your due diligence, is a pretty good one. And I will most likely rinse and repeat this same process when the current tenants move on with their lives :)

Happy Landlording!
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Jr. Member
Jan 10, 2012
165 posts
44 upvotes
Ottawa
skeet50 wrote: Just in case anyone has missed this:

An Orleans property has sold for more than $250k above asking.

With a list price of $849k, it had 80 showings and 23 offers, with multiple offers above $1m.
Why is it important how much over asking it was sold? To me, it shows the realtor was incompetent to price the house according to market value. 850k does not seem to be the right price for such a house by looking at the photos. Can't you just list it under priced and sell it much higher than asking?
Deal Fanatic
Jul 4, 2004
5697 posts
1759 upvotes
Ottawa
raaaaam wrote: Why is it important how much over asking it was sold? To me, it shows the realtor was incompetent to price the house according to market value. 850k does not seem to be the right price for such a house by looking at the photos. Can't you just list it under priced and sell it much higher than asking?
I agree that "x over asking means very little" but I wouldn't say the realtor was incompetent since they ultimately got the seller $1.1M. In a strong sellers market, listing low in hopes of getting a bidding war is a valid strategy. Nobody can predict what he would have gotten if he had listed at $975k or $1.2M but it's certainly possible that he wouldn't have gotten as much (one of our neighbors recently listed at $799k (which was a lot for our street) and ended up selling for $770k. We suspect that they might have gotten more if they had listed at $749k and possibly received multiple offers).
Deal Guru
User avatar
Jun 28, 2003
10119 posts
3224 upvotes
Ottawa
raaaaam wrote: Why is it important how much over asking it was sold? To me, it shows the realtor was incompetent to price the house according to market value. 850k does not seem to be the right price for such a house by looking at the photos. Can't you just list it under priced and sell it much higher than asking?
Further to what michel explained, to me another angle is marketing and exposure. Not everyone in Ottawa follows the real estate scene as much we do, certainly much less so for the folks from out-of-town, out-of-the country.

When people see the headline of *Orleans home sold for quarter-of-a-million dollar over asking*, they will be curious to know more about this brokerage and the agents and the houses in the immediate vicinity. I don't work in the industry but I believe the focus for this particular brokerage (Pilon) is Orleans and surrounding areas (I certainly don't see too many of their signs in Barrhaven/Kanata/Nepean/Hintonburg, areas I frequent the most)

It is all about the name recognition and the brand in this industry, the numbers (and strategy) are almost an after-thought...
[removed]
Member
May 6, 2012
242 posts
138 upvotes
KANATA
canabiz wrote: Further to what michel explained, to me another angle is marketing and exposure. Not everyone in Ottawa follows the real estate scene as much we do, certainly much less so for the folks from out-of-town, out-of-the country.

When people see the headline of *Orleans home sold for quarter-of-a-million dollar over asking*, they will be curious to know more about this brokerage and the agents and the houses in the immediate vicinity. I don't work in the industry but I believe the focus for this particular brokerage (Pilon) is Orleans and surrounding areas (I certainly don't see too many of their signs in Barrhaven/Kanata/Nepean/Hintonburg, areas I frequent the most)

It is all about the name recognition and the brand in this industry, the numbers (and strategy) are almost an after-thought...
Well they can list it 1$ and got a million over asking. So they can become the smartest agent ever :)
Member
Nov 10, 2014
329 posts
397 upvotes
Ottawa, ON
Minto Harmony just released their prices for their upcoming release this Saturday. https://www.minto.com/ottawa/new-homes/ ... homes.html
Cheapest base price for 3 bed 2.5 bath town starts at 500k+. I find the prices to be unappetizing, but I'm guessing they will still sell out on Saturday and receive hundreds of inquires/bids.
Newbie
Mar 9, 2020
5 posts
5 upvotes
Tadalafil wrote: Minto Harmony just released their prices for their upcoming release this Saturday. https://www.minto.com/ottawa/new-homes/ ... homes.html
Cheapest base price for 3 bed 2.5 bath town starts at 500k+. I find the prices to be unappetizing, but I'm guessing they will still sell out on Saturday and receive hundreds of inquires/bids.
Same price as the Arcadia last release. Not sure how many lots will be released this time.
Member
Jan 12, 2007
367 posts
106 upvotes
Orleans
raaaaam wrote: 850k does not seem to be the right price for such a house by looking at the photos.
The real craziness in this article is the fact this house just sold for $1.1M+ and it's literally 500 meters downwind from the Navan dump.

It may be in the worse location in all of Orleans, and still sold for a massive premium.
Newbie
Jun 17, 2019
12 posts
4 upvotes
Folks, looking to get some help. Does anyone here have knowledge of how Land rezoning works? Also, interested in knowing the rough cost it may incur for the whole process? For example, like buying farmland and potentially getting it rezoned to residential at some point in future (in 5-10 years).
Deal Addict
Jul 7, 2007
1088 posts
623 upvotes
97gst wrote: The real craziness in this article is the fact this house just sold for $1.1M+ and it's literally 500 meters downwind from the Navan dump.

It may be in the worse location in all of Orleans, and still sold for a massive premium.
The same model as mine (without the foundational upgrades we did), sold for 1.15 mil.

291 Percheron Way, Stittsville, Ontario
Sold — $1,150,000 ($100,000 Over Asking)
1 day on market

Its a house that fits on a 50' lot, but this one was on a pie lot and had a pool in the back.

We are starting to see 1 mil + for McMansions in the far suburbs.

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