Real Estate

Ottawa and Surrounding Area Real Estate market discussion

  • Last Updated:
  • Jan 15th, 2021 7:18 pm
[OP]
Deal Addict
Nov 26, 2004
2706 posts
923 upvotes
Applesmack wrote: Are conservatives actually going to conduct any layoffs though?
Wouldn't say with certainty, but historically and ideologically speaking, I will say more than likely. Just look at the Ontario PC.
Newbie
Dec 12, 2013
52 posts
58 upvotes
Not going to lie it is really nice to see more discussion about the Ottawa market as all I usually only see news about the Vancouver and Toronto markets.
Deal Addict
Jan 15, 2017
3611 posts
2966 upvotes
Applesmack wrote: Are conservatives actually going to conduct any layoffs though?
Program spending cuts usually mean layoffs. Even measures such as staffing freezes and wage freezes will dampen consumer confidence. Limiting staff transfers can also cool the market. Defense is still not back to the number of transfers it use to do each year.
Newbie
Dec 7, 2014
7 posts
Ottawa, ON
mself084 wrote: I'm in the same boat! House will be going up in April/May... this thread is always a good read every few weeks. Good luck
Same here! Plan on listing in the spring but trying to determine exactly when, hoping for a closing date in June. Would listing in February be too early?
Deal Addict
Nov 11, 2004
3171 posts
333 upvotes
Ottawa
Biomed2011 wrote: Same here! Plan on listing in the spring but trying to determine exactly when, hoping for a closing date in June. Would listing in February be too early?
Impossible to say, Could sell in 24 hours could sell in 2 months.

When i sold my last property i had a few agents in, they said it should sell in 45-60 days, I had a few offers with in 48 hours.
Hello
Sr. Member
Feb 18, 2010
884 posts
351 upvotes
Greely
Biomed2011 wrote: Same here! Plan on listing in the spring but trying to determine exactly when, hoping for a closing date in June. Would listing in February be too early?
I put my last house up for sale in late November 2009 and it sold over the weekend, due to a dearth of listings at the time. On Kijiji no less!

Hoping this isn't a trend, but I plan to have my house up for sale in early March...
Newbie
Dec 7, 2014
7 posts
Ottawa, ON
ilusa wrote: Impossible to say, Could sell in 24 hours could sell in 2 months.

When i sold my last property i had a few agents in, they said it should sell in 45-60 days, I had a few offers with in 48 hours.
I'm not too concerned about it selling, as similar homes in my area have sold in less than a month. More curious to see if listing it in February/March is too early to arrange for a closing date in June - would the buyer agree? I'm trying to arrange for the closing date to align with my move in date of my new house in early June.
Newbie
Sep 27, 2018
35 posts
46 upvotes
cyberfreak123 wrote: Numbers are updated for Nov. Very low inventory. Spring will be a strong season again with new price records , if economy remains strong.
sure, if you say so
sales down,markets down, rates up, household debt up ...... seems like a prefect recipe for "new price records"
Deal Addict
Nov 11, 2004
3171 posts
333 upvotes
Ottawa
Biomed2011 wrote: I'm not too concerned about it selling, as similar homes in my area have sold in less than a month. More curious to see if listing it in February/March is too early to arrange for a closing date in June - would the buyer agree? I'm trying to arrange for the closing date to align with my move in date of my new house in early June.
The standard is 60 days from closing
Hello
Deal Addict
Jan 15, 2017
3611 posts
2966 upvotes
Biomed2011 wrote: I'm not too concerned about it selling, as similar homes in my area have sold in less than a month. More curious to see if listing it in February/March is too early to arrange for a closing date in June - would the buyer agree? I'm trying to arrange for the closing date to align with my move in date of my new house in early June.
A longer closing date significantly increases the risk of things going wrong that could impact the eventual closing. The buyer could experience things beyond their control like the loss of a job, illness, unexpected change in personal circumstances, mortgage rules and regulations changing, or increasing mortgage rates.

Your best strategy when selling is to negotiate the shortest closing date possible in order to get the job done.
Newbie
Jan 13, 2018
15 posts
2 upvotes
For those wanting to list your house in the spring, I’m looking to buy in the new year. Looking for 3+bdrm, 3+bth between 450-550K. DM me with more details if you have a house that fits that criteria and you can save the commission if we can make a deal :)

Thanks!
Deal Addict
User avatar
Jan 31, 2018
3309 posts
631 upvotes
Applesmack wrote: Mortgage rules don't impact Ottawa. Our prices would have to more than double to see impact due to high salaries of people here. Only homes over $1 million would have their values damaged by mortgage rules.
Mortgage rules greatly impact the Ottawa Market !

Since the implementation of the new rules you would need to qualify at 5.34% or 2% above the rate( greater of) .

This has certainly had an impact on the amount you can get approved for :

earning $100,000 annually.

A family could have afforded a home worth $725k (approx) under the old rules by making a down payment of 20% with a five-rate of 2.85%. A 25-year amortization would see its purchasing power drop to $570,970 under the new stress tests rules.

Many clients are simply auto renewing at maturity because they wont qualify to switch out to a new lender

Phil
Phil Cragg
Mortgage Agent
Mortgage Outlet Inc Broker License #12628
Newbie
Dec 12, 2013
52 posts
58 upvotes
Just a friendly warning for anyone going with a new-build home in Ottawa to look at your sale agreement and what it specifies relating to the hot water tank (rental). I am embarrassed to say that I totally overlooked this clause when I first looked over my agreement with the builder and am at the mercy of whatever deal they strike up with whatever company they choose.

This is an older article but it explains it well: Your text to link here...

Sadly, even though I overlooked it, the builder most likely could have just come back and said if you don't like these terms then go buy a house somewhere else. My two options now will be probably to buy out of it right away at an inflated cost OR to go through with the rental agreement/try and negotiate a better rate.

Lesson learned.
Sr. Member
Aug 14, 2007
524 posts
281 upvotes
Ottawa
StefanW499 wrote: Just a friendly warning for anyone going with a new-build home in Ottawa to look at your sale agreement and what it specifies relating to the hot water tank (rental). I am embarrassed to say that I totally overlooked this clause when I first looked over my agreement with the builder and am at the mercy of whatever deal they strike up with whatever company they choose.

This is an older article but it explains it well: Your text to link here...

Sadly, even though I overlooked it, the builder most likely could have just come back and said if you don't like these terms then go buy a house somewhere else. My two options now will be probably to buy out of it right away at an inflated cost OR to go through with the rental agreement/try and negotiate a better rate.

Lesson learned.
Well, based on my experience, there are no way to you skip to sign the rental agreement for new-build. The worse thing is the tankless hot water system cost almost $50 a month tax included.
Deal Addict
Nov 13, 2013
2364 posts
1152 upvotes
Ottawa
Applesmack wrote: Are conservatives actually going to conduct any layoffs though?
Well for the 2019 market just the fear could have an impact. I guess in more government oriented areas it will be more noticeable. Conversely the 2020 market could be very strong with a relief rally. I think it will be a mistake to wait as next summer could be the brief lull when some deals can be had. All that said timing the market is a mugs game. Best to buy and sell based on your needs.
Deal Fanatic
User avatar
Jul 19, 2003
8086 posts
718 upvotes
FadethePublic wrote: sure, if you say so
sales down,markets down, rates up, household debt up ...... seems like a prefect recipe for "new price records"
Outside of toronto core this is true:
- The inventory was and is still there. It's not bought up, its delisted.

A quick view of bungol.ca shows it all.

So I also can't imagine how prices will go up. Instead, we might see a big sharp downwards move.
hi!
Deal Fanatic
Feb 22, 2011
8550 posts
10129 upvotes
Toronto
masterhapposai wrote: Outside of toronto core this is true:
- The inventory was and is still there. It's not bought up, its delisted.

A quick view of bungol.ca shows it all.

So I also can't imagine how prices will go up. Instead, we might see a big sharp downwards move.
Except this isn't rotting fruit that is being put up for sale that must be sold or lost. A lot of people considered selling IF they can get the price they want which would allow them to downsize and live more extravagantly. If they can't do that then they will not sell, which is why the inventory is now off the market. I personally know people who planned to sell their house and downsize to a condo but now that the differential is much lower that is out of the question.
Sr. Member
Aug 14, 2007
524 posts
281 upvotes
Ottawa
Ottawa real estate update:

Another Stellar Year for Ottawa’s Real Estate Market

January 4, 2019

Members of the Ottawa Real Estate Board sold 663 residential properties in December through the Board’s Multiple Listing Service® System, compared with 765 in December 2017, a decrease of 13.3 per cent. December’s sales included 471 in the residential property class, a drop of 15.7 per cent from a year ago, and 192 in the condominium property class, a decrease of 6.8 per cent from December 2017.

Year to date activity increased by 2.4 per cent from 2017. The total number of residential and condo units sold throughout all of 2018 was 17,476, compared with 17,065 in 2017. Residential property class sales decreased slightly to 13,418 from 13,478 in 2017 and condominium property class sales were up 13.1 per cent with 4,058 units sold in 2018 versus 3,587 in the previous year.

“For the last decade, we have experienced steady growth in our real estate market from volume to prices; however, the past two years have jumped significantly in activity with a 12.6% increase in unit sales from 2016. Ottawa, and its surrounding area, has excellent employment numbers and has proven to be one of the most affordable larger cities in the country,” proclaims Ralph Shaw, Ottawa Real Estate Board’s 2018 President.

“What has come to a head in 2018 is the overall shortage of inventory which is extreme in certain pockets of the city. While this has caused unit sales to slide in the residential market, it has fueled the condominium market which has recovered and carried us through much of 2018. We have been predicting this will bode well for new construction in delayed high-rise projects,” he adds.

“Another significant factor affecting the market in 2018, and first-time homebuyers in particular, is the mortgage stress test – an attempt by the federal government to cool two major markets in the country. It has also unfortunately made move-up buyers less likely to take that step and free up entry-level options, which is an important part of the resale market,” Shaw points out.

The average sale price of a residential-class property sold in December in the Ottawa area was $453,011, an increase of 4.7 per cent over December 2017. The average sale price for a condominium-class property was $278,295, an increase of 9 per cent from this month last year. Year-end figures show an average sale price of $446,661 for residential-class properties in 2018, a 5.1 per cent increase from 2017 and $278,316 for condominium properties, up 3.2 per cent from last year.*

“In 2019, we expect the economic fundamentals of supply and demand to be at play with upward pressure on prices due to limited supply and increasing demand. Buyers do have affordable options in outlying communities if they are willing to commute — or they will simply have to pay more provided they can qualify. New builds and purpose-built rental housing could help ease some of the pressure, particularly if builders are able to provide a variety of quality options allowing for more movement in the market,” Shaw concludes.

The $300,000 to $449,999 range continues to represent the most active price point in the residential market, accounting for nearly 45 per cent of December’s sales while almost one in four sales were in the $500,000 to $750,000 price range. Between $175,000 to $274,999 remained the most prevalent price point in the condominium market, accounting for 55.7 per cent of the units sold. Year-end figures echoed these dominating price points holding 45.6 per cent of the residential market and 49.8 of the condo market respectively.

In addition to residential and condominium sales, OREB Members assisted clients with renting 2,713 properties since the beginning of the year down from 2,977 from this time last year.
Deal Fanatic
Jul 4, 2004
5842 posts
1894 upvotes
Ottawa
Based on the December report, I think Ottawa RE might be in for a bit of downturn for residential (although probably only in numbers and not really in prices). December 18 volume was significantly lower than December 17 and 2018 YTD was pretty flat but that's after a very hot Spring and Summer (which should have bumped the annual numbers) so since then, the market is much cooler. Residential prices for 2018 is up 5.1% which is very healthy but only up 4.7% for Dec 18 vs Dec 17 indicating again a slowing rise in prices. Add Fed Elections in 2019 which will likely see a PC government which could very well mean cuts or at least hiring freeze for the Fed Gov and lowering high tech returns in the US and worldwide which could affect Kanata high-tech sector and I think we might see some serious slow down over the next few years.
Deal Addict
Dec 23, 2010
1849 posts
909 upvotes
Moon
michelb wrote: Based on the December report, I think Ottawa RE might be in for a bit of downturn for residential (although probably only in numbers and not really in prices). December 18 volume was significantly lower than December 17 and 2018 YTD was pretty flat but that's after a very hot Spring and Summer (which should have bumped the annual numbers) so since then, the market is much cooler. Residential prices for 2018 is up 5.1% which is very healthy but only up 4.7% for Dec 18 vs Dec 17 indicating again a slowing rise in prices. Add Fed Elections in 2019 which will likely see a PC government which could very well mean cuts or at least hiring freeze for the Fed Gov and lowering high tech returns in the US and worldwide which could affect Kanata high-tech sector and I think we might see some serious slow down over the next few years.
If conservatives win and begin firing people then yes Ottawa market will begin stagnation again. However I still see Kanata high tech sector doing well. The company I worked for in Kanata is one of the largest employers in the city and their stock is up 70%. High tech industry is definitely not in any peril.

My personal opinion is conservatives may win a minority at best and they won't go on a firing spree. I expect Ottawa market to have a very hot summer and spring fueled by high demand and low inventory. Skyrocketing rents in Ottawa will also pressure people to buy rather than waste more of their money.

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