Real Estate

Ottawa and Surrounding Area Real Estate market discussion

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  • Jun 22nd, 2021 6:54 pm
Sr. Member
Nov 10, 2014
663 posts
1220 upvotes
Ottawa, ON
Few observations from tracking townhomes in Barrhaven:
- Many listings now go live mid week, have open houses Saturday and Sunday, and withhold offers until offer presentation on Monday or Tuesday evening. Majority of town homes seem to be sold within a week using this strategy which keeps the overall inventory low. Its crazy to see this kind of sales process in Barrhaven.
- Although demand is very high right now, the list price looks like they hardly went up in the last 6 months. I suspect this is done in conjunction with the above strategy to attract interest and to create a bidding war. I see listing agents in open houses openly tell visitors that they and their clients want and expect offers well over asking.
- It is becoming more of a norm to waive conditions like financing, and I have even seen sellers pay for a home inspectionto provide to buyers to encourage no condition offers. I heard of sellers paying for home inspection in Alta Vista area before, but it is the first time hearing about it in Barrhaven.
- Town homes sell much more quickly compared to larger detached to no one's surprise. Very few buyers in Barrhaven shopping in 600k+ price points relative to number of buyers in <400k. As a result price gap between singles and towns are becoming increasingly small- I wonder at what point more buyers start shifting to singles to get a better price/ sq foot.

Very interested to see what townhouses sold for in March. I feel like buyers in Ottawa are still very conservative thus limiting the prices sellers can get even in a multiple offers situation.
Deal Fanatic
Jul 4, 2004
6350 posts
2481 upvotes
Ottawa
HN12345 wrote: ...
Also keep in mind that the future of Government will be to work from home, we are already witnessing this trend with departments such as SSC. The cubicles are getting smaller and smaller, pretty soon there will not be such a thing as personal office spaces.
For what it's worth, there is certainly a movement to encourage more employees to work from home but given that it's government, it's more of a crawl than a sprint.

I currently work with Immigration, Refugee and Citizenship Canada (IRCC (was CIC)) and many of our team (myself included) share a cubicle and work from home half the time but I believe it's a pilot project within the Ministry and I'm not sure how widespread it is. I was with Public Services and Procurement Canada (PSPC (was PWGSC)) and there telework was tolerated but only if kept to a minimum (note that I think this often depends on the manager than the Ministry itself)).
Deal Addict
Jan 15, 2017
4128 posts
3633 upvotes
Tadalafil wrote: Few observations from tracking townhomes in Barrhaven:
- Many listings now go live mid week, have open houses Saturday and Sunday, and withhold offers until offer presentation on Monday or Tuesday evening. Majority of town homes seem to be sold within a week using this strategy which keeps the overall inventory low. Its crazy to see this kind of sales process in Barrhaven.
- Although demand is very high right now, the list price looks like they hardly went up in the last 6 months. I suspect this is done in conjunction with the above strategy to attract interest and to create a bidding war. I see listing agents in open houses openly tell visitors that they and their clients want and expect offers well over asking.
- It is becoming more of a norm to waive conditions like financing, and I have even seen sellers pay for a home inspectionto provide to buyers to encourage no condition offers. I heard of sellers paying for home inspection in Alta Vista area before, but it is the first time hearing about it in Barrhaven.
- Town homes sell much more quickly compared to larger detached to no one's surprise. Very few buyers in Barrhaven shopping in 600k+ price points relative to number of buyers in <400k. As a result price gap between singles and towns are becoming increasingly small- I wonder at what point more buyers start shifting to singles to get a better price/ sq foot.

Very interested to see what townhouses sold for in March. I feel like buyers in Ottawa are still very conservative thus limiting the prices sellers can get even in a multiple offers situation.
That's my observation also. Market is hot in the lower priced range and mostly caused by the stress test. I also wonder how long this will continue before buyers start looking at detached singles to get better value for their dollar.
Deal Addict
Jan 15, 2017
4128 posts
3633 upvotes
michelb wrote: For what it's worth, there is certainly a movement to encourage more employees to work from home but given that it's government, it's more of a crawl than a sprint.

I currently work with Immigration, Refugee and Citizenship Canada (IRCC (was CIC)) and many of our team (myself included) share a cubicle and work from home half the time but I believe it's a pilot project within the Ministry and I'm not sure how widespread it is. I was with Public Services and Procurement Canada (PSPC (was PWGSC)) and there telework was tolerated but only if kept to a minimum (note that I think this often depends on the manager than the Ministry itself)).
Telework has been available in the Federal Public Service for decades, but few managers embrace it. Managers found it difficult to manage and many employees viewed it as a preferential perk for employees.
Deal Fanatic
Jul 4, 2004
6350 posts
2481 upvotes
Ottawa
skeet50 wrote: That's my observation also. Market is hot in the lower priced range and mostly caused by the stress test. I also wonder how long this will continue before buyers start looking at detached singles to get better value for their dollar.
I don't know how much "better value" is a factor; I think for many, because of the stress test, a town home is the only option because detached singles, even if they are a better value and not that much more, are simply not an option financially. Also, many buyers prefer a newer town home to an older single so "better value" is subjective.
Sr. Member
Aug 14, 2007
546 posts
298 upvotes
Ottawa
skeet50 wrote: That's my observation also. Market is hot in the lower priced range and mostly caused by the stress test. I also wonder how long this will continue before buyers start looking at detached singles to get better value for their dollar.
I guess unless the existing TH owners sell their property, then they may move up to detached single or buy closer to downtown. I personally see more of my friends/workers choose to moving closer to downtown instead of buying a bigger house. I guess it is because family who can afford $600k+, most likely it needs duel incomes and the family size is usually 3 or 4. They don't really need a bigger house, anything under 2000 sq ft will work, but they prefer to save time on the road. Even Ottawa traffic is not as bad as Toronto, but spend 45 mins to 60 mins from Barrhaven to Downtown is pretty normal. Two people to take cares of two school kids, live in Barrhaven but work in downtown, then most likely you need two cars. I see it is more logical to buy smaller property closer to downtown but save the time and expense on car/gas.
Deal Addict
Dec 4, 2016
1910 posts
932 upvotes
skeet50 wrote: That's my observation also. Market is hot in the lower priced range and mostly caused by the stress test. I also wonder how long this will continue before buyers start looking at detached singles to get better value for their dollar.
If Vancouver and Toronto is any guide, buyers start looking at detached singles when they get priced out of towns. Detached singles start getting a basement/first floor "mortgage helper", making the monthly carrying cost less than that of a town. Given Ottawa's relatively high household incomes, this could take a while.
Newbie
Mar 3, 2011
45 posts
12 upvotes
Ottawa
In regards to new builds, I saw on the Minto Communities feed that they just had their grand opening for their new subdivision "Morgan's Creek" last weekend, and they are now temporarily sold out. These were infusion houses, so price point was >300K.
Sr. Member
Jun 15, 2009
574 posts
269 upvotes
Nepean
Seems overpriced - I have a friend who sold his 2000 Sq feet, 34" single on the same street two months ago for 470.
Zero Hope wrote: Seems about right when new end unit townhomes are going for 460k base price in Stittsville.
Sr. Member
Aug 14, 2007
546 posts
298 upvotes
Ottawa
ghasita wrote: Seems overpriced - I have a friend who sold his 2000 Sq feet, 34" single on the same street two months ago for 470.
Since the listing is directly from seller, maybe the seller just want to testing the market or trying to set the new record on the street. At the end, it only costs $700 to use purplebricks.

My parents always said: if you never don't try, you never know you can do it... Face With Tears Of Joy
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User avatar
Jan 9, 2007
4005 posts
491 upvotes
ghasita wrote: Seems overpriced - I have a friend who sold his 2000 Sq feet, 34" single on the same street two months ago for 470.
Quick sale? That seems incredibly under-priced, unless it backed on to Toys R Us? Neighbour in Fairwinds sold his 1700 sq ft, 2 car garage home for $530k'ish a month or two ago. Again, crazy.
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Sr. Member
Jun 15, 2009
574 posts
269 upvotes
Nepean
No, it was not a quick sale, it was in the market for roughly 10 days with 3 competing offers. Anyway, at the end of the day, you just need one motivated buyer.
mself084 wrote: Quick sale? That seems incredibly under-priced, unless it backed on to Toys R Us? Neighbour in Fairwinds sold his 1700 sq ft, 2 car garage home for $530k'ish a month or two ago. Again, crazy.
Deal Fanatic
Jul 4, 2004
6350 posts
2481 upvotes
Ottawa
ghasita wrote: Seems overpriced - I have a friend who sold his 2000 Sq feet, 34" single on the same street two months ago for 470.
With recent sales, it might not be that far off the market (it's also 1 more bedroom which may appeal to more buyers (Looking at other sales on the street, 4 beds sold for more than 3 beds but many of them also had 2 car garage / wider lots)). That one for $471k was in the middle of January and the market has definitely warmed up since then but it is a valid comment about ComFree listings; some are just sellers that are fishing.
Deal Addict
Dec 4, 2016
1910 posts
932 upvotes
CookieTrain wrote: In regards to new builds, I saw on the Minto Communities feed that they just had their grand opening for their new subdivision "Morgan's Creek" last weekend, and they are now temporarily sold out. These were infusion houses, so price point was >300K.
I drive by that project all the time. I guess they've established that stacked towns in Kanata north is viable for new builds, unlike high rise condos. I expect builders to start pushing stacked towns in rest of Kanata soon. Much better use of land than two story towns.
Deal Addict
Nov 11, 2004
3193 posts
340 upvotes
Ottawa
ilusa wrote: House is for sale around the block from me, there must have been 10 cars parked out front when i drove by yesterday

Crazy
I just drove by it again today and there is a SOLD sign on it already

Crazy out there
Hello
Member
Jun 7, 2010
300 posts
95 upvotes
ilusa wrote: I just drove by it again today and there is a SOLD sign on it already

Crazy out there
Whats the address?
Sr. Member
Aug 14, 2007
546 posts
298 upvotes
Ottawa
March 2019 data:

https://www.oreb.ca/newsroom/a-slow-mar ... al-estate/

A Slow March into Spring Market for Ottawa Real Estate

April 3, 2019

Members of the Ottawa Real Estate Board sold 1,511 residential properties in March through the Board’s Multiple Listing Service® System, compared with 1,654 in March 2018, a decrease of 8.6 per cent. March’s sales included 1,136 in the residential property class, a drop of 12.4 per cent from a year ago, and 375 in the condominium property class, an increase of 5 per cent from March 2018. The five-year average for March unit sales is 1,402.

“Lack of inventory is responsible for March’s deficiency in residential unit sales,” states Ottawa Real Estate Board’s President, Dwight Delahunt. “This tightness of supply is manifesting in significant reductions in DOMs (days on market) and properties selling very quickly. Residential DOMs are down 14%, and condo DOMs are down 36% from last year.”

“In some pockets of the city, buyers are facing multiple offer situations, and properties are often selling over list price. These dynamics of low inventory, reduced days on market, and multiple offers are signs of a seller’s market in these areas. While a benefit to those sellers, it’s stressful and time consuming for buyers. The experience and guidance of a REALTOR® is essential in these types of market conditions,” he adds.

“A major factor contributing to the lack of housing stock is the shortage of quality options for those who might list their homes. Move-up sellers feed the market for first-time homebuyers. Another issue which adds to a seller’s reluctance to put their home on the market is the B-20 stress test which affects their purchasing power,” Delahunt asserts.

“In Ottawa, we have a population base that’s increasing year over year with a growth rate of 8.8 percent, which is higher than Ontario (5.7%) and Canada as a whole (5.9%). Immigration and high employment levels are bringing residents to our desirable and affordable city,” he suggests.

Delahunt continues, “With high demand and limited supply, prices will continue to be pushed upwards – it’s a simple and fundamental economic principle. Although we appreciate the recent measures the federal government has taken towards affordable homeownership, all three levels of government need to work together at implementing mechanisms that will also restore the supply side of the market.”

The average sale price of a residential-class property sold in March in the Ottawa area was $480,143, a rise of 7.2 per cent over March 2018. The average sale price for a condominium-class property was $290,181, an increase of 5.2 per cent from this month last year.*

The $300,000 to $449,999 price range continued to represent the most active price point in the residential market, accounting for 43 per cent of March’s sales while 1 in 4 residential sales was in the $500,000 to $749,999 range. The most prevalent price point in the condominium market increased to the $225,000-$349,999 price range, accounting for 49 per cent of the units sold.

“The condo units in the entry-level range are near depletion as first-time homebuyers are trying to get into the market at the lowest possible price. Moreover, previous renters may have been pushed into condo ownership with rental vacancy rates in Ottawa at less than 1%. If there were concrete incentives for investors to purchase properties to lease or develop purpose-built rentals – it could certainly stimulate the rental market,” Delahunt concludes.

In addition to residential and condominium sales, OREB Members assisted clients with renting 550 properties since the beginning of the year.

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