Ottawa and Surrounding Area Real Estate market discussion

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.

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

OttawaGardener wrote: ↑ Roger Road is for monster homes. This must be a tear-down.

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

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.

GaryR28626 wrote: ↑ Most expensive area to rent a two-bedroom place - Kanata:

https://ottawa.ctvnews.ca/most-expensiv ... -1.4640036

GaryR28626 wrote: ↑ Kanata showing #2 in rentals.ca national rent report for October 2019

https://rentals.ca/national-rent-report

vahk33 wrote: ↑ I would say at least 500k. How much is the construction cost? Shouldn't be more than 500-600k right?

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?

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.

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.

GaryR28626 wrote: ↑ Kanata showing #2 in rentals.ca national rent report for October 2019

https://rentals.ca/national-rent-report

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.

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.

Applesmack wrote: ↑ When I was looking for a home just 2 years ago houses in Kanata for the high 300s were dime a dozen.

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.

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?

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.