Real Estate

Ottawa Real Estate market discussion

  • Last Updated:
  • Oct 23rd, 2020 7:54 pm
Deal Addict
Jul 7, 2007
1082 posts
616 upvotes
Based claridge's instagram post, their initial blocks (not sure how many) in Watter's Pointe has sold out on release weekend and they are now releasing 3 more blocks.
Sr. Member
Nov 6, 2007
602 posts
98 upvotes
NomNomNom wrote: Nevermind, Looks like it was very successful:
Site plan before this weekend (note the available lots in yellow): https://media.minto.com/doc/ppages/38/A ... 0_2020.pdf
Site plan after this weekend's release (all red = sold now): https://media.minto.com/doc/ppages/38/A ... 4_2020.pdf

Madness continues...
and this why (newer) resale towns are now going above $500k …

can move in now and not wait 1+ year. plus not living in a construction zone for another year and deal with all the builder issues on delivery.
Newbie
Aug 25, 2010
87 posts
43 upvotes
R8247 wrote: and this why (newer) resale towns are now going above $500k …

can move in now and not wait 1+ year. plus not living in a construction zone for another year and deal with all the builder issues on delivery.
Seems like many towns in the kanata area are now going above $600k!
Deal Addict
Jan 15, 2017
3436 posts
2782 upvotes
I find it amazing to read all these new releases of new builds are sold out in a day when I read on another forum of new home builds being constantly delayed. Home buyers are extremely frustrated with the lack of communication from builders and many expressing their builders unable to provide a firm closing date. Some are a few weeks or one or two months from closing and unable to get a commitment from their builder.
Sr. Member
Nov 6, 2007
602 posts
98 upvotes
skeet50 wrote: I find it amazing to read all these new releases of new builds are sold out in a day when I read on another forum of new home builds being constantly delayed. Home buyers are extremely frustrated with the lack of communication from builders and many expressing their builders unable to provide a firm closing date. Some are a few weeks or one or two months from closing and unable to get a commitment from their builder.
I guess 1+ year from now those these "new purchasers" will be the same ones complaining and venting ....
Member
Jul 15, 2019
348 posts
241 upvotes
R8247 wrote: I guess 1+ year from now those these "new purchasers" will be the same ones complaining and venting ....
Idk about that alot of purchasers are aware now of uncertainty behind delays due to the pandemic and material shortages, those who bought prior and were to close around these times... they were not expecting so many unavoidable delays. Then again you can never underestimate the type of person labelled as a complainer.
Last edited by freeman93 on Sep 14th, 2020 2:52 pm, edited 1 time in total.
Deal Addict
Jan 15, 2017
3436 posts
2782 upvotes
R8247 wrote: I guess 1+ year from now those these "new purchasers" will be the same ones complaining and venting ....
I wonder though if those signing today and even aware of the uncertainty that currently exists for their current buyers? One buyer was stating that his builder will not confirm a November closing date (a date that has already been extended from Spring to Summer to Fall) because they cannot find workers. He was told that the builder cannot confirm closing until a few weeks before the actual closing. That is just unacceptable.
Sr. Member
Nov 6, 2007
602 posts
98 upvotes
skeet50 wrote: I wonder though if those signing today and even aware of the uncertainty that currently exists for their current buyers? One buyer was stating that his builder will not confirm a November closing date (a date that has already been extended from Spring to Summer to Fall) because they cannot find workers. He was told that the builder cannot confirm closing until a few weeks before the actual closing. That is just unacceptable.
I know there's COVID and all ...

But generally aren't there clauses and penalties built in on late deliveries?
Newbie
Aug 25, 2010
87 posts
43 upvotes
R8247 wrote: I know there's COVID and all ...

But generally aren't there clauses and penalties built in on late deliveries?
Generally yes, but regular clauses are thrown out, referencing the "unavoidable delay provisions" of the Addendum. From tarion's statement:
If the pandemic results in, for example, materials shortages, work stoppages or unavailability of governmental permits or approvals that affect timing of construction or delivery of a new home...
Deal Addict
Jan 15, 2017
3436 posts
2782 upvotes
NomNomNom wrote: Generally yes, but regular clauses are thrown out, referencing the "unavoidable delay provisions" of the Addendum. From tarion's statement:
If the pandemic results in, for example, materials shortages, work stoppages or unavailability of governmental permits or approvals that affect timing of construction or delivery of a new home...
Appears many builders are using the pandemic as an excuse to do whatever they want. Most Ottawa tract builders have lots of experience building homes. They should easily be able to look at the current construction point and reasonably estimate when the home will be delivered. The responses of "don't know" and "maybe" just don't cut it. If they truly don't know, issue a notice of extension and be done with it.

I can't imagine being in the position right now of having a closing date extended twice already to Nov 5th (as in one case) and being told by the builder that they don't know if it will close on that date or not. This type of response is totally unacceptable, imo.
Deal Addict
Jan 15, 2017
3436 posts
2782 upvotes
NomNomNom wrote: Generally yes, but regular clauses are thrown out, referencing the "unavoidable delay provisions" of the Addendum. From tarion's statement:
If the pandemic results in, for example, materials shortages, work stoppages or unavailability of governmental permits or approvals that affect timing of construction or delivery of a new home...
Just had a thought - I wonder if the builders can use this clause for new purchases right now as the buyers are signing during a pandemic?
Member
Aug 22, 2016
352 posts
198 upvotes
NomNomNom wrote: Nevermind, Looks like it was very successful:
Site plan before this weekend (note the available lots in yellow): https://media.minto.com/doc/ppages/38/A ... 0_2020.pdf
Site plan after this weekend's release (all red = sold now): https://media.minto.com/doc/ppages/38/A ... 4_2020.pdf

Madness continues...
It is a great location as the Campeau extension will give quick access to more shopping areas. At this growth rate, 3 years from now these houses will attract a huge premium.
When I look at the area, I get amazed about the number of houses a builder can add in a tiny area with the cookie-cutter approach . When this is all complete, I want to see how those ponds appear.
Deal Fanatic
Jul 4, 2004
5618 posts
1690 upvotes
Ottawa
R8247 wrote: I know there's COVID and all ...

But generally aren't there clauses and penalties built in on late deliveries?
I haven't really looked into it for a while but I believe as long as the builder provides sufficient notice, they can delay pretty much indefinitely with no penalty.

FWIW, post-COVID or pre-COVID, I believe that everyone I know (myself included) that bought a new build had delays.

Not to mention the at least 2 projects in Ottawa where the builder took deposits but eventually cancelled the development after several years because it wasn't economically viable (I suspect that they just realized that the property values had gone up enough that they could just do a different project and charge more - we'll have to see if that's how it plays out).
Newbie
Sep 13, 2020
5 posts
1 upvote
Does anyone have experience with Caivan? Do you think there is much risk associated with their Ridge community?
Member
Nov 10, 2014
314 posts
376 upvotes
Ottawa, ON
I know the new build price increases in the last couple of years are a product of supply and demand, but the builder costs have soared as well. Even if the demand dropped off a cliff, I don't think the builders can sell lots at ~2018 prices today as they wouldn't be able to recoup their costs.

I remember the city's permit and development charges increasing last year. This year bunch of construction materials are on back order, and price of lumber literally tripled. Trades also name whatever price they want as it looks like every builder is hiring, and bunch of home owners are looking to get renos done. Back in 2018, prices I heard from my agent and my mortgage guy that custom home construction was $180~200/sqft. Now the same sources tell me that I'd be lucky to do get it done for under $300 sqft.

Lastly, BoC and Statistics Canada are full of sh*t when reporting inflation of <1% in 2020 so far. The only three things I can think of that is cheaper than last year are hotels, gas, and borrowing money. Costs of everything else like trips to the grocery store, getting take out, and getting a hair cut are way up. The Canadian dollar is at a real risk of becoming the Canadian ruble or the Canadian peso. I still wouldn't pick up a cash flow negative rentals, but borrowing money at a negative real interest rate to buy a real asset seems like a decent hedge against inflation.

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