Real Estate

Ottawa Real Estate market discussion

  • Last Updated:
  • Dec 1st, 2020 3:51 pm
Member
Nov 10, 2014
335 posts
405 upvotes
Ottawa, ON
I'd like to get properties in Ottawa right now for the list or below list price as well. Let me know if you figure out how so that I can quit my day job...

On a more serious note, stop fixating on the asking price and focus solely on comps (more recent the better as market is changing quickly). Search more broadly for comps depending on data availability, and if you can't figure out the fair value of the property based on the available data, fire your agent and get a better one that can figure it out for you. Paying below or above listing price as a buyer doesn't mean anything at end of the day. What matters is what you paid for the property compared to what your neighbours who bought recently paid for their homes.

Market in the last few months have been on a tear setting new highs by the week. Posters on this thread have shared that they recently lost bids when bidding higher than what the most recent comps supported, which makes sense as the very definition of real estate price increase is when buyers pay more for than before for similar properties. IMO a decent buy in this market right now is getting a property for what similar properties sold in June, July, and August.
Jr. Member
Feb 23, 2010
112 posts
92 upvotes
Tadalafil wrote: I'd like to get properties in Ottawa right now for the list or below list price as well. Let me know if you figure out how so that I can quit my day job...

On a more serious note, stop fixating on the asking price and focus solely on comps (more recent the better as market is changing quickly). Search more broadly for comps depending on data availability, and if you can't figure out the fair value of the property based on the available data, fire your agent and get a better one that can figure it out for you. Paying below or above listing price as a buyer doesn't mean anything at end of the day. What matters is what you paid for the property compared to what your neighbours who bought recently paid for their homes.

Market in the last few months have been on a tear setting new highs by the week. Posters on this thread have shared that they recently lost bids when bidding higher than what the most recent comps supported, which makes sense as the very definition of real estate price increase is when buyers pay more for than before for similar properties. IMO a decent buy in this market right now is getting a property for what similar properties sold in June, July, and August.
Thanks, just venting frustration like the others.. we are first time home buyers and this is just exhausting. We’ve been bidding above the last few sales of comps when looking spec by spec. But it seems to always go way over to a point that it matches the specs of a much nicer bigger house on a larger lot. At which point I can’t help but look at the listings without the “no conveyance of offers” at a higher price point and offer the asking price to get out of the market.

The thirst is unreal...

To think, we held off a few months because of the speculations from CERB ending and fallout..I guess that’s yet to begin if it were to materialize
Deal Guru
User avatar
Jun 28, 2003
10134 posts
3233 upvotes
Ottawa
paradoll wrote: Thanks, just venting frustration like the others.. we are first time home buyers and this is just exhausting. We’ve been bidding above the last few sales of comps when looking spec by spec. But it seems to always go way over to a point that it matches the specs of a much nicer bigger house on a larger lot. At which point I can’t help but look at the listings without the “no conveyance of offers” at a higher price point and offer the asking price to get out of the market.

The thirst is unreal...

To think, we held off a few months because of the speculations from CERB ending and fallout..I guess that’s yet to begin if it were to materialize
You also want to stay within the boundary of the max that the banks allow you to borrow, assuming you will have a mortgage just like many, if not all, of us here (Yes I have heard about real estate purchases with all cash, more common before the pandemic with no restrictions for international travellers, but I digress).

My agent always told me to *Put in an offer that you won't lose any sleep overnight, even if you lose, you know you put your best foot forward and you just have to let the chips fall where they may*.

Best of luck!

Good luck with
[removed]
Jr. Member
Dec 22, 2004
198 posts
150 upvotes
Toronto
my_sir wrote: Ok, Ottawa market is officially crazy. I was interested in Minto mahogany and got the price list for the new release tomorrow. I was there one year ago and the Noble was in the low/mid $600k at the time. Not bad for being so far out of the city. Didn’t pull the trigger because timing was not right. Now it is going for $835k! Even the small houses are up $200k in one year. Anyway, if I buy the noble, the out the door cost will be about a million, which for me is out of whack especially for a house with vinyl siding. Not sure what you guys think.
Got an email yesterday and yeah pretty much sold out opening day. Incredible.
Member
Nov 10, 2014
335 posts
405 upvotes
Ottawa, ON
paradoll wrote: Thanks, just venting frustration like the others.. we are first time home buyers and this is just exhausting. We’ve been bidding above the last few sales of comps when looking spec by spec. But it seems to always go way over to a point that it matches the specs of a much nicer bigger house on a larger lot. At which point I can’t help but look at the listings without the “no conveyance of offers” at a higher price point and offer the asking price to get out of the market.

The thirst is unreal...

To think, we held off a few months because of the speculations from CERB ending and fallout..I guess that’s yet to begin if it were to materialize
Yeah, it is really rough out there for buyers right now. Losing out on multiple offers several times is very frustrating, especially when the the offers are for a price that is supported by comps. I'm guessing most posters here who tried to buy something in the last year or two experienced the same frustrations.

As WilliamW mentioned, Ottawa real estate price increases is having similar consequences as the Toronto increases. Ottawa boomers with minimal savings outside of their principal residence are now effectively bailed out as they have option to leave for cheaper town/city to finance their retirement.

Another consequence is that time when one bought into real estate is having an increasing influence on one's net worth and financial security compared to one's job and wage. As an example, consider:
- person A earns 80k/yr and bought a Barrhaven townhouse in 2017.
- person B earns 120k/yr and is looking to buy the same house right now in 2020.

While person B's pay is 50% higher than person A's, difference on T4 incomes is only ~25k/yr after tax considerations. The difference between having bought a suburban townhouse in 2017 vs 2020 is at least 200k, and that increase in networth is completely tax free. All other things equal, I think person A is on a better track to reach other financial goals like saving for kids' education and for retirement.

I personally benefited a lot from the price increases, but even I see the unfairness in the scenario above.
Member
Aug 22, 2016
370 posts
202 upvotes
paradoll wrote: Wondering if anyone has different strategies on calculating the value of houses and their offer $ (without buyer fatigue and overpaying?)
I am seeing listings that were seemingly listed at market value only to be sold for 20-30% over asking price. We just got outbid on a small little house that went $130k over asking. Looking at comps is a bit hard especially when the market is so drastically different from one year ago and not many properties are listed in the neighbourhoods in the last couple years or so... I would much prefer putting in a fair offer at asking or a bit below asking... now it seems like it is a waiting game of seeing when we hit the jackpot. Given the fluctuations our realtor has sort of left it to us on what we are comfortable putting in as an offer.

With all the recent news of super hot market, I thought 68 NORTOBA Cres, Ottawa, ON K2T 1K6 would sell @ 850K but it sounds like it did not received the type of offers sellers was expecting. Kanata lakes, 4 bedroom, finished basement. So, there is no one size fits all approach to these bidding wars. The way I dealt with this around same time last year.

1. Each day check the newly listed house and attack it immediately. You may get lucky as I have seen sellers that love to sell it to the buyer that viewed the house first - It sounds weird but this was the reason my bid was successful :)

2. The math I followed was to add 5% for each year of ownership to the seller bought price. Take that price and compare to the recent comparable house price. If comparable is higher, submit the offer with comparable + (a number between 3K to 15K which ever you are comfortable with). If comparable is lower then submit the offer with the other number.

3. One more: For below million dollar houses with no recent renovations, I have seen that sellers are looking to make at least 100K over their bought price if they bought within 2 years, 200K within 2 to 5 years, 300K within 5 to 10 years. For a well renovated house, you have to figure out the how much it would cost to make such renovations and add them to this price.

4. Keep submitting offers, does not matter how many you loose. There maybe few weeks where supply is higher than demand. You will turn out to be the lucky one :)

Realtors love to stay neutral and one statement you will often hear as a buyer is, you as a buyer will be paying nothing to the realtor. I guess that is why you are not getting much info from your realtor.
Deal Addict
Dec 23, 2010
1845 posts
903 upvotes
Moon
Just sold my house for a price I"m happy with :)

Good luck in this market everyone! I'm officially in the US now.
Deal Fanatic
Jul 4, 2004
5715 posts
1771 upvotes
Ottawa
This week's OREB MLS stats

New Listing (774)
Back On Market (54)
Price Decrease (160)
Price Increase (39)
Conditional Sale (267)
Sold (618)
Expired (19)
Leased (0)
Cancelled (119)
Rented (66)
Suspended (13)

So 828 listings coming on, 1102 coming off. Still very much seller's market but the trend of it moving towards a more balanced market seems to be continuing (I think it was about 1:2 earlier this spring/summer, then 2:3 and now it's getting closer to 3:4).
Last edited by michelb on Sep 28th, 2020 9:39 am, edited 2 times in total.
Sr. Member
May 23, 2017
836 posts
582 upvotes
^ I really hope it does start becoming more of a balanced market. It's been getting way too crazy lately.

We've been thinking of possibly upgrading to a bigger house (buying a new build) but the insane demand is making it difficult. I fondly remember even just as recently as 2017 you could walk into a sales centre which had lots freely available, go home to think about it, and your lot would still be available when you went back the next week. Those were the good old days! Now we can't get a lot even if we tried on the day of release (what with some builders doing lottery and email first-come-first-serve which is pretty much luck of the draw).

At least we aren't in a huge rush, we can wait till hopefully things slow down again to look into upgrading and just stay put in our current house for a couple more years in the meantime. I feel bad for first-time homebuyers who don't have the luxury of waiting to get into the market. :S
Deal Guru
Oct 30, 2006
14723 posts
4136 upvotes
813 Tabaret St is asking $560k for an end unit 3 bedroom built in 2011. Tenanted until next June too for $2k plus utilities. Doesn't seem cash flow positive at that rate.
TripleQ wrote:I read Click magazine for the articles!
Member
May 6, 2012
250 posts
144 upvotes
KANATA
Lone_Prodigy wrote: 813 Tabaret St is asking $560k for an end unit 3 bedroom built in 2011. Tenanted until next June too for $2k plus utilities. Doesn't seem cash flow positive at that rate.
why does it have to be cashflow?
Sr. Member
Aug 6, 2011
590 posts
261 upvotes
Lone_Prodigy wrote: 813 Tabaret St is asking $560k for an end unit 3 bedroom built in 2011. Tenanted until next June too for $2k plus utilities. Doesn't seem cash flow positive at that rate.
in Ottawa, I gave up on cashflowing with 1 unit-property long time ago. Maybe there's some hope for properties that can be turned into duplex or triplex with some work.

another option is look for older condo units in less desirable locations. but personnally , id still prefer freeholds and accept lower cashflow.

I think in Gatineau it's still possible to find cashflow + freehold properties.
Newbie
Feb 11, 2012
70 posts
52 upvotes
Ottawa
paradoll wrote: Thanks, just venting frustration like the others.. we are first time home buyers and this is just exhausting. We’ve been bidding above the last few sales of comps when looking spec by spec. But it seems to always go way over to a point that it matches the specs of a much nicer bigger house on a larger lot. At which point I can’t help but look at the listings without the “no conveyance of offers” at a higher price point and offer the asking price to get out of the market.

The thirst is unreal...

To think, we held off a few months because of the speculations from CERB ending and fallout..I guess that’s yet to begin if it were to materialize

If it makes you feel any better, I just sold my condo and bought into a house in Kanata that I went 20k over ask and am terrified that I overpaid and of a market pull back!
Jr. Member
Mar 29, 2016
141 posts
96 upvotes
Toronto
Claridge Royal price list attached.. It’s in pre-construction stage with completion around mid 2024.

Any one purchase in this project and what you guys think for buying one-bedroom for investment purpose?
Location: Cumberland and George.

There is a Salvation Army Ottawa Booth Centre right around the corner of Claridge Royal. Sales lady said they will be moving it to Vanier in future but not confirmed.

Any suggestions?
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Newbie
May 5, 2020
18 posts
18 upvotes
casanova2001 wrote: Claridge Royal price list attached.. It’s in pre-construction stage with completion around mid 2024.

Any one purchase in this project and what you guys think for buying one-bedroom for investment purpose?
Location: Cumberland and George.

There is a Salvation Army Ottawa Booth Centre right around the corner of Claridge Royal. Sales lady said they will be moving it to Vanier in future but not confirmed.

Any suggestions?

Sometimes in June 2020 I visited the site and discussed with the sales agent to purchase a one bedroom apartment for investment. Eventually, I decided not buy for a few reasons:
1. The closing day was way too far and it didn't work well for me
2. The building was located in a super noisy street with lots of sirens...
3. Royal is one out 3 buildings that are going be build there all next to each other. One is rental by Clarige, 1 is condo and the third was initially supposed to be hotel, but I found some insider information (June 2020) that this Claridge third building (hotel) can also be a rental or condo since covid affected the tourism and hotel business. This means renting out the condo could be possibly challenging considering WFH and such.
4. I could also afford for a town , so decided to go with a new construction town eventually.
I attached the price list of June 2020 here if it helps
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