Real Estate

Ottawa and Surrounding Area Real Estate market discussion

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  • Feb 27th, 2021 3:51 am
Jr. Member
Mar 1, 2016
195 posts
118 upvotes
fogetmylogin wrote: I agree. Ottawa civil servants are exceedingly cautious people so many were probably imagining the worse case even Conservative minority was the best hope Cons had and the early minority Harper years actually had record levels of hiring.

For what it's worth I think the spring will be very strong especially for single family houses in the more affordable price range. I am still a bit bearish on higher end homes and condos as this segment seems to have missed the boom a bit. However, the rental market in this price range is strong. My centrally located town house that rented for $3200 three years ago was quickly snapped up for $3800 this summer. Meanwhile the sale comps are up a bit but not like cheaper properties.
Did you have an agent help set your new rental rate? We are putting our house in Westboro up for rent again and I’m really not sure how to price it this time. We were getting $2600 three years ago and I’d like to be closer to $3000 but not sure if it’s realistic even in this market.
Deal Fanatic
Jul 4, 2004
5955 posts
2039 upvotes
Ottawa
OttawaGardener wrote: Roger Road is for monster homes. This must be a tear-down.
Yes, I know people who went to see it and it was a full reno or tear-down. Basically sold for what people thought was land-value (although listing it that low certainly helped; they had tons of offers and that probably boosted the price).
[OP]
Deal Addict
Nov 26, 2004
2883 posts
1286 upvotes
cyberfreak123 wrote: What do you guys think about this sale in Alta Vista? I'm just curious who would buy this and what would they do with it.

224 ROGER , OTTAWA
https://realestate.yellitmedia.com/6440
Asking price: 599K
Sold: 805K
New homes on similar lots in the area are selling for over $2M. So at $805k, even once you factor in construction cost, the buyer is still ahead by at least $100k.
Jr. Member
Jun 21, 2018
155 posts
66 upvotes
William W wrote: New homes on similar lots in the area are selling for over $2M. So at $805k, even once you factor in construction cost, the buyer is still ahead by at least $100k.
I would say at least 500k. How much is the construction cost? Shouldn't be more than 500-600k right?
[OP]
Deal Addict
Nov 26, 2004
2883 posts
1286 upvotes
vahk33 wrote: I would say at least 500k. How much is the construction cost? Shouldn't be more than 500-600k right?
The homes that are selling for $2M+ are approximately 3400 sq ft plus basement. Construction cost runs $250 to $300/sq ft depending on level of finish. I also factor in interest expenses and housing costs during construction. That's why I said at least $100k. It can be closer to your figure if the buyer is willing to settle on cheaper material. Ie $6/sq ft hardwood instead of $15/ sq ft hardwood or a $20k kitchen instead of $50k or $500 vanity instead of $2000 one or a $200 toilet versus a $500 one.
Deal Fanatic
Jul 4, 2004
5955 posts
2039 upvotes
Ottawa
William W wrote:
New homes on similar lots in the area are selling for over $2M. So at $805k, even once you factor in construction cost, the buyer is still ahead by at least $100k.
vahk33 wrote:
I would say at least 500k. How much is the construction cost? Shouldn't be more than 500-600k right?
I don't have any experience with this but I believe just tearing down the house will be about $50k and then rebuilding a more modest house could probably be done for $500k but I do not believe you could build a house like the ones that sell for even $1+ million for $500k (see post below).
William W wrote: The homes that are selling for $2M+ are approximately 3400 sq ft plus basement. Construction cost runs $250 to $300/sq ft depending on level of finish. I also factor in interest expenses and housing costs during construction. That's why I said at least $100k. It can be closer to your figure if the buyer is willing to settle on cheaper material. Ie $6/sq ft hardwood instead of $15/ sq ft hardwood or a $20k kitchen instead of $50k or $500 vanity instead of $2000 one or a $200 toilet versus a $500 one.
Just to be clear, if you look at this area on MLS, in the past 2 years, there has been 1 sale above 2 million, 15 sales between $1 and $1.5 million and about 50 sales between $500k and $1 million.
[OP]
Deal Addict
Nov 26, 2004
2883 posts
1286 upvotes
michelb wrote:

Just to be clear, if you look at this area on MLS, in the past 2 years, there has been 1 sale above 2 million, 15 sales between $1 and $1.5 million and about 50 sales between $500k and $1 million.
Thanks, will you be able to filter and only includes the ones that are less than 5 years old? And just include area 3606 and 3603? I believe the ones that sold in those 2 area were $1.5M+.

And if we were looking at strictly Roger Road, I believe there were a few $1M+ 50 years old bungalow that were sold this calendar year.
Deal Addict
Dec 23, 2010
1849 posts
909 upvotes
Moon
GaryR28626 wrote: Kanata showing #2 in rentals.ca national rent report for October 2019

https://rentals.ca/national-rent-report
Why the hell would someone rent for 3k a month in Kanata rather than simply buy property? Doesn't make any sense at all. I smell bullshit.

By the way there is only ONE detached house in Kanata on the Kanata Stittsville market for under 500k. The inventory in that price range is more dead than I have ever seen it. We clearly have well eclipsed 500k as a minimum for a detached home in the west end.

Edit: It was only showing 1 because I didn't include Bungalows.. There are actually whopping THREE.... Yeah... Point still stands.
Deal Addict
Dec 4, 2016
1872 posts
892 upvotes
Applesmack wrote: Why the hell would someone rent for 3k a month in Kanata rather than simply buy property? Doesn't make any sense at all. I smell bullshit.

By the way there is only ONE detached house in Kanata on the Kanata Stittsville market for under 500k. The inventory in that price range is more dead than I have ever seen it. We clearly have well eclipsed 500k as a minimum for a detached home in the west end.

Edit: It was only showing 1 because I didn't include Bungalows.. There are actually whopping THREE.... Yeah... Point still stands.
500k CAD for a detached really isn't much, since the cost of building the house can be close to, or even more than, 500k. Construction trades don't work for free.
Deal Addict
Dec 23, 2010
1849 posts
909 upvotes
Moon
BlueSolstice wrote: 500k CAD for a detached really isn't much, since the cost of building the house can be close to, or even more than, 500k. Construction trades don't work for free.
When I was looking for a home just 2 years ago houses in Kanata for the high 300s were dime a dozen.
Deal Addict
Jul 7, 2007
1170 posts
748 upvotes
Applesmack wrote: When I was looking for a home just 2 years ago houses in Kanata for the high 300s were dime a dozen.
Ok fire up the time machine then.
Deal Addict
Sep 2, 2009
1422 posts
1097 upvotes
Ottawa
Applesmack wrote: Why the hell would someone rent for 3k a month in Kanata rather than simply buy property? Doesn't make any sense at all. I smell bullshit.
Possible reasons: someone that wants a house but knows they are moving soon, closer to work but don't want to commit, don't have a down-payment, not very good with money (hence no down-payment), etc... Maybe even an owner trying to see how high they can get in rental income, or trying to get someone to do a short-term lease to "boost" a future sale price...

Not saying it's right but there could be reasons.
Sr. Member
Nov 10, 2014
523 posts
858 upvotes
Ottawa, ON
Do you folks think pre-con condos in Ottawa make sense now?
Should current trends now become a norm, buying condos scheduled for completion in 2023/2024 at today's prices is a steal. On the other hand, people were losing their shirts with precon condos in Ottawa just few years back.

If trends from Toronto carryover to Ottawa, condos should see a nice jump after freeholds start becoming unaffordable for the average working family.
Deal Addict
Dec 4, 2016
1872 posts
892 upvotes
Tadalafil wrote: Do you folks think pre-con condos in Ottawa make sense now?
Should current trends now become a norm, buying condos scheduled for completion in 2023/2024 at today's prices is a steal. On the other hand, people were losing their shirts with precon condos in Ottawa just few years back.

If trends from Toronto carryover to Ottawa, condos should see a nice jump after freeholds start becoming unaffordable for the average working family.
At the moment, new build freeholds are very expensive for a couple reasons, one of which is high labor cost of construction. If current trends continue, pre-con condos might not be able to honor the prices buyers signed for, resulting in the project going into receivership and buyers getting their deposit back. After all, condos and freehold towns share the same pool of construction labor. If prices go south, you bet developers will be holding buyers to the contract, going to court if necessary.

Does Ottawa have a "reputable" builder that will finish a condo project even though construction costs have gone through the roof and finishing the project would actually cause them to lose more money?
Sr. Member
Nov 10, 2014
523 posts
858 upvotes
Ottawa, ON
BlueSolstice wrote: At the moment, new build freeholds are very expensive for a couple reasons, one of which is high labor cost of construction. If current trends continue, pre-con condos might not be able to honor the prices buyers signed for, resulting in the project going into receivership and buyers getting their deposit back. After all, condos and freehold towns share the same pool of construction labor. If prices go south, you bet developers will be holding buyers to the contract, going to court if necessary.

Does Ottawa have a "reputable" builder that will finish a condo project even though construction costs have gone through the roof and finishing the project would actually cause them to lose more money?
I am reasonably sure in thinking that builders with the size and history of Claridge and Richcraft will finish their projects, and turn a nice profit for themselves.
Deal Addict
Jan 15, 2017
3745 posts
3151 upvotes
Tadalafil wrote: Do you folks think pre-con condos in Ottawa make sense now?
Should current trends now become a norm, buying condos scheduled for completion in 2023/2024 at today's prices is a steal. On the other hand, people were losing their shirts with precon condos in Ottawa just few years back.

If trends from Toronto carryover to Ottawa, condos should see a nice jump after freeholds start becoming unaffordable for the average working family.
No, I do not think that pre-con condos make sense now.

Yes, should current trends continue these condos will be a steak in 2023/24 at today's prices, but that is dependent upon SHOULD current trends continue. That's falling for the old recency bias and that recent trends will continue. But here's the thing - we have just elected a minority liberal government. Any minority government indicates a certain degree of uncertainty in the Ottawa economy. Rolling the dice on construction values 4 or 5 years in the future during a period of political uncertainty is, imo, very risky.

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