Housing inventory has been a concern this year and is so far not keeping up with the insatiable demand for Ottawa real estate. Our inventory is at historically low levels. Especially in the central locations. This will continue to put upward pressure on prices. In May I witnessed a few houses sell for way over their already high list prices in extremely competitive offer situations. Both were staged impeccably but were very small inside. Some buyers are getting desperate and will pay a huge premium for the right location.
Let’s look at the numbers. Our average price for a residential-class property was up 6.3% over last May, sitting at $464,401. In the residential-class property segment, there were 1,794 units sold which is a decrease of 3% over last May. In the condo market, 485 units sold…. which is an increase of 9.2% from last May. The condo prices in Ottawa increased by 3.4% with the average sale price at $281,247.
As prices rise up in this market it is so important to have the right representation. On the buying side, you need to make sure that you are making a prudent investment. For sellers, you want to make sure you are taking advantage of the hot conditions.
Everyone knows that Toronto prices are crazy but it is always hard to put it in context in terms of what something similar here in Ottawa would sell for. I decided to dig a bit deeper and figure this out. I wanted to find something in a similar suburban-style community in each city. The easiest way to accomplish this was to find something built by the same builder, in this case, Mattamy Homes.
I used the suburban communities of Milton in the GTA and Stittsville in Ottawa.
VERDICT: The price gap between these properties was even more than what I was expecting. I really think that if a buyer in Toronto is willing to pay those prices right now it is only a matter of time before Ottawa gets to that level. I have said it for years and I believe now people are starting to realize that Ottawa is a very undervalued real estate market. Just this week we were named the #7 city in the world for quality of life. Number 1 in North America (Wellington NZ was #1 in the world). If you want some assistance with your real estate needs our team is always happy to help!
Ottawa is now the hottest real estate market in Canada! Move over Toronto and Vancouver. The market strongly favours sellers in most neighbourhoods. It is a good time to be a seller! Inventory has been tight most of the year. This past week I have seen a glimpse of hope as we are starting to get some new listings in the suburban neighbourhoods. Hope this will help balance the market a little. It is a challenging for buyers right now (and buyer agents).
Let’s look at the numbers. The market statistics for April are in. Our average price for a residential-class property was up 4.2% over last April, sitting at $455,212. In the residential-class property segment, there were 1,616 units sold which is an increase of 9.5% over last April. In the condo market, 416 units sold…. which is an increase of 33.3% from last April. The condo prices in Ottawa increased by 0.3% with the average sale price at $269,294.
We are launching a new client appreciation initiative that compliments our mission. We are committed to bringing value to our clients long after they have fulfilled their real estate needs. We will be stockpiling items of utility that the average homeowner might use only once a year. If you don’t want to purchase the item you are welcome to borrow it from our team. We will be adding to this list quite a bit over the upcoming months and years ahead. Check out the video to learn more.
Keller Williams often describes itself as a training and consulting company, thinly disguised as a real estate brokerage. We’re always bringing expert educators and speakers to keep our training current, and our knowledge of where Ottawa is headed as a city, as up-to-date as possible. I recently had a chance to attend a superb information session, hosted by Damon Berlin from the City of Ottawa, about the ongoing- and future goals and plans for- Ottawa’s move to Light Rail Transit (LRT).
Damon’s job is to help explain what the Light Rail Project is all about, how it will work, and what to expect from Stage 1 when it is completed (the plan is to have trains running sometime in November). He also talks to the upcoming Stage 2 project that will take the City’s long-term vision even further towards the goal of 95% of all Ottawa’s within 5kms of public transit, upon completion in 2023. Damon did a fabulous job of pointing out many great features of the City’s equipment, systems, and anticipated outcomes, but there is 1 big takeaway that I got from this presentation that I think is worth highlighting- a broad, but simple concept.
The attitude that the City of Ottawa is bringing to this project is one of inclusion and progressiveness and is the driving force behind many of its decisions. While some may think that Light Rail will merely replace buses with trains, the vision from the City involves an entire culture shift. Aside from enabling riders to travel from Tunney’s Pasture to Blair (the entire length of Stage 1 rail) in under 25 minutes, with trains that carry 11,000 passengers/hour and arrive every 5 minutes or less in peak times, Stage 1 has the potential to remove 110,000 tonnes of Greenhouse Gases (GHGs) from the air every year- not to mention the reduction in noise pollution! Fewer buses on the road also mean a shift in where traffic flows through the city centre and gives the City the opportunity to add flowers, plants, trees, and even benches to the sides of streets to encourage more time spent outdoors. There will even be some streets that will become much more pedestrian friendly, with widened sidewalks and more greenspaces.
Even the architectural designs being used for stations and community areas are not without thought. Pimisi Station, located beneath the new Booth Street Bridge, has been designed to incorporate an Algonquin cultural theme, reflecting both the historical and contemporary cultural significance of the Algonquin people. “Pimisi”, means “eel” in the Algonquin language, and the Algonquin-Anishinabe people and culture play a significant role in the station look, design, and feel. Stations are designed to become spectacular landmarks, and this emulation of a more “European” approach to city planning is intended to catapult Ottawa from a “big small city” to a “small big city” in the eyes of the county, and dare I say, the global community.
What does this mean, if anything, to your real estate investment plans in Ottawa? The important thing to note is that wherever we find new and easier access to public transit, we also find new-found opportunities for growth. Commercial destinations, community centres, restaurants, and parks spring up nearby, as the new concentration of residents requires new and more convenient amenities. This can often mean an appreciation in your property value but could also transform your route home from work into a construction nightmare or take away your previously unobstructed view. Taking some time to explore the City of Ottawa GeoOttawa website, and speaking with a professional Realtor are just 2 great tools you can use to see exactly how close your property may be to the new LRT facilities and lines, where you might be most happy purchasing a new property, and how these changes might affect your current investments. A city is always growing and changing with the times- just remember that like Ottawa, the plans for Stage 2 and other future Light Rail endeavours are still under development, and any proposed hubs or activity centres are just that. The new LRT system is innovative technology and thinking, and it gives each individual community a chance to do something different and to grow along with it. Like most things related to real estate, this project will take some patience and forward thinking if it is to realize it’s potential and further entrench Ottawa as a world-class city in which more and more people choose to invest. We have some great material available if you’d like to get started. All aboard!
The market statistics for March are in. No surprise that we are well ahead of last years numbers. Our average price for a residential-class property was up 8% over last March, sitting at $447,561. In the residential-class property segment, there were 1,302 units sold which is an increase of 11.8% over last March. In the condo market, 358 units sold which is an increase of 14.4% from last March and a price increase of 0.7% with the average sale price at $275,592 for condos in Ottawa last month.
The market continues to favour sellers in most neighbourhoods at the moment. However, I am starting to see more listings coming to market over the last few weeks. Hopefully, this will help balance the market a bit more with the busy Spring market on the horizon.
With the anticipation of Spring, everyone seems to be in a better mood. People in Ottawa will soon come outside again after a long gruelling hibernation. It is also a great time to get a few things done around the house. We are not there yet but I feel we are getting close!
Check Water Drainage
We are fortunate this year we will not have all the snow melt at once. However, April showers bring May flowers but, if you are having drainage issues, they may also bring expensive water damage. Pay attention to the way the melted snow runs off your roof – it should flow away from your home and its foundation. If you notice any issues, such as water seeping or pooling, it is important to investigate further. It is not a good idea to climb onto the roof so use binoculars to look for damage on shingles or soffits. This work can save you thousands down the road.
Clean Out Gutters
This is one that many people forget. A major cause for improper drainage is a blockage in your eavestroughs or downspouts caused by leaves and other debris. Cleaning out your clogged gutters is necessary when seeking to avoid water drainage catastrophes. Since safety is the most important thing, you should only take on this task if you can work safely from a ladder and if your home is no more than one storey. If your roof is any higher than that, you are better off to hire someone to do it. You can hire a service to clean your gutters for around $100.
Small Repairs – Big Payoffs
Tend to chipping paint, crumbling bricks, and small holes in your siding as soon as possible. Making these small repairs can save you money in the long run, not to mention the fact that your home looks newer for longer. These jobs can be done by you or a professional depending on your expertise or comfort level.
I always have my air conditioner serviced in the late Spring as well. If you have any questions please feel free to get in touch.
A story on the “hot” Ottawa housing market was recently featured in the Globe and Mail. I have been a Realtor for 14 years and I have never seen an article in this paper about Ottawa’s market. This National coverage is usually only reserved for the big markets of Vancouver or Toronto. Our housing market right now is just hard to ignore.
Prices are up again over last year. Our average price for a residential-class property was up 2.7% over last February, sitting at $429,600. In the residential-class property segment, there were 729 units sold which is a decrease of 5.3% over last February. This is likely due to less inventory. In the condo market, 250 units sold which is an increase of 7.8% from last February and a price increase to 5.6% with the average sale price at $274,174 for condos in Ottawa last month. With a combined total of 979 units sold in February and an overall decrease of 2.3%.
Multiple offers are always a possibility in some of Ottawa’s most desirable neighbourhoods. With inventory levels at record lows and demand, sky-high multiples are happening across the city and right into suburbia. The hottest segment in the city right now is a suburban townhouse. This was never the case in previous years! Amazing to see this phenomenon develop over the past few months. Now what is happening is that new prices are being established as buyers bid homes up. This will make 2018 a year were we might see some buyers priced right out of our market.
With so much money at stake on every sale it is so important to have the right representation. A listing that is well priced, presented & staged, and marketed should receive multiple offers. From there it will be the Realtor’s role to make sure you maximize your return and help navigate through all the offers. We helped a client recently sell their house for 6k more than the exact same model of townhouse right next door. We had 13 offers, they had 6. It matters who you work with.
If you are thinking of buying or selling please feel free to get in touch.
The Ottawa housing market has been extremely active over the past 6-9 months. It has been quite amazing to observe. New regulations and rising interest rates have some homeowners wondering if we have seen the last of these price gains. Here is a market minute update:
Our local economy is strong and consumer confidence is high. I really see no indications that this real estate market will cool anytime soon. Especially when I look at the most basic economic concept of supply and demand. Right now the supply is very limited in Ottawa and the demand is strong. We have only 6 weeks of inventory available right now in many neighbourhoods. This indicates a strong sellers market. We haven’t even hit the Spring market yet! If you are curious to whats happening in your neighbourhood feel free to get in touch.
