Ottawa-Gatineau Housing Market

[Vixx]

http://ottawacitizen.com/news/local-news...ing-market-finds-itself-listings-starved

Seems like Ottawa's housing market has been heating up and its not even spring yet.

I browse MLS just to see what's out there from time to time (even though I'm not currently living in Ottawa) and I definitely believe that low inventory is driving the high prices in some areas. The options available over the last few months have been pretty poor.

Take the Glebe for example, it has a defined area and inventory has been traditionally lower then similarly sizes neighbourhoods. But the inventory there has been so poor lately that it's been driving the price up for houses that have been sitting (and the asking is definitely overvalued for places that need a lot of work). Even Riverside South and Barrhaven inventory levels have been abysmal and has lead to overinflated prices/bidding wars as Rushforth noted in the article.

That's not to say places like Bell's Corner or Orleans are the same, I'm just nitpicking more popular areas right now. You can easily find fair asking prices for nice places in the aforementioned areas, but they just aren't that desirable at the moment. It'll be interesting how the market and inventory supply is in the spring.

[acottawa]

Is inventory unusually low or unusually low for the middle of winter?

[Vixx]

Originally Posted by acottawa

Is inventory unusually low or unusually low for the middle of winter?

I think both.

I think I went on MLS maybe twice last summer and even then it was unusually low.

[kwoldtimer]

Originally Posted by Vixx

I think both.

I think I went on MLS maybe twice last summer and even then it was unusually low.

We are at the time of year when the number of listings would normally be rising quickly, no?

[Vixx]

Originally Posted by kwoldtimer

We are at the time of year when the number of listings would normally be rising quickly, no?

Normally yes. From some recent searches it seems like listings have only marginally gone up but not by much which is a bit unusual.

[Vixx]

http://www.cbc.ca/news/canada/ottawa/ottawa-bidding-wars-hot-housing-market-1.4626315

Pretty ridiculous how hot the Barrhaven market has gotten. Don't get me wrong, I don't mind Barrhaven, its unremarkable in so many ways, however one of the main attractions was the affordability.

I'd rather fork out a bit more and live out in Greely and at least not have a cookie cutter house and a large yard.

[OTSkyline]

^Definitely. As a first-time buyer looking right now there definitely seems to have a very thin inventory of places for sale, prices have definitely gone up and properties are selling very fast.

[1overcosc]

Greely is a pretty miserable place to live though... there's nothing there. Even the simplest of errands require long drives to get to. There's a reason why it's so affordable considering house and lot sizes.

Orleans and the eastern Gloucester is reasonable for suburban housing. My sister bought a pretty nice 3 bedroom house in Blackburn Hamlet a couple months ago for $385k. It's within a five minute walk of the 94 bus route (useful for my brother-in-law as he works downtown), there's a public school literally a four minute walk down the side street so their kids will be able to walk to school, and there's plenty of local amenities within walking distance. Something comparable in the western suburbs would probably cost $500k or more. They're so overpriced now...

Interestingly, thanks to lower interest rates, my sister and brother-in-law's monthly mortgage payment, adjusted for inflation, is actually about 15% less than my parents paid on their first house 30 years ago.. and they bought way out in Embrun.

[Vixx]

Originally Posted by 1overcosc

Greely is a pretty miserable place to live though... there's nothing there. Even the simplest of errands require long drives to get to. There's a reason why it's so affordable considering house and lot sizes.

Orleans and the eastern Gloucester is reasonable for suburban housing. My sister bought a pretty nice 3 bedroom house in Blackburn Hamlet a couple months ago for $385k. It's within a five minute walk of the 94 bus route (useful for my brother-in-law as he works downtown), there's a public school literally a four minute walk down the side street so their kids will be able to walk to school, and there's plenty of local amenities within walking distance. Something comparable in the western suburbs would probably cost $500k or more. They're so overpriced now...

Interestingly, thanks to lower interest rates, my sister and brother-in-law's monthly mortgage payment, adjusted for inflation, is actually about 15% less than my parents paid on their first house 30 years ago.. and they bought way out in Embrun.

I agree. I lived in Greely for 3 years and I regretted it several months after moving in. I had to drive pretty much everywhere for every little thing and the hydro one costs were stupid. Silver lining was that it was great for having large get togethers and it was super nice and quiet in the evening.

Thing is though I would refuse to get myself into a bidding war and pay 30% above market value for a shitty Minto house; at that point I'd rather hike out to Greely again.

I see the appeal of buying (if one is interested in suburbia) in the east end and for the reasons you outlined. For some reason I've just never really enjoyed Orleans and know I wouldn't be happy out there.

Whenever I do move back to Ottawa and am forced to look for homes in the suburbs, then Riverside South would be my ideal location. Although prices have quietly been rising there too and who knows how the market will look in 5 years.

[ars]

Barrhaven's biggest problem is that, depending on where in Barrhaven you are, access to the 416 is painful. For example, if you live around the Strandherd-Woodroffe intersection, the majority of your journey will be driving to get on to the highway(if you're trying to go anywhere in Ottawa). The increased traffic doesn't help either.

[acottawa]

Originally Posted by 1overcosc

Orleans and the eastern Gloucester is reasonable for suburban housing.

I'm a little surprised at how many people discount western Gloucester. There are still pretty decent options in the inner suburbs under 400 (and a fairly easy drive or transit to central Ottawa, even in rush hour).

I guess there are school district issues.

[TransitZilla]

Originally Posted by ars

Barrhaven's biggest problem is that, depending on where in Barrhaven you are, access to the 416 is painful. For example, if you live around the Strandherd-Woodroffe intersection, the majority of your journey will be driving to get on to the highway(if you're trying to go anywhere in Ottawa).

If you starting from Strandherd/Woodroffe, it doesn't make much sense to use the 416 unless you are heading west. There are many other options- Woodroffe, Merivale, Prince of Wales, Limebank.

[DogsWithJobs]

Originally Posted by acottawa

I'm a little surprised at how many people discount western Gloucester. There are still pretty decent options in the inner suburbs under 400 (and a fairly easy drive or transit to central Ottawa, even in rush hour).

I guess there are school district issues.

I often wonder the same thing. There are, in my opinion, better options closer to downtown than in the suburbs and for similar prices. I'd take an older more central house over a new one with a terrible commute every day of my life.

I know nothing of the school situations though, and if you work in the burbs then obviously that changes things too. It just surprises me to see people go nuts for new builds so far out, especially when I listen to my coworkers complain about their commutes regularly.

[ars]

Originally Posted by bradnixon

If you starting from Strandherd/Woodroffe, it doesn't make much sense to use the 416 unless you are heading west. There are many other options- Woodroffe, Merivale, Prince of Wales, Limebank.

Well... that's exactly what I was stating. You're at the mercy of the clogged up arterial roads if you live in that part of Barrhaven. Even if you're heading west, you need to drive quite a bit to even get to the 416.

[Vixx]

Originally Posted by DogsWithJobs

I often wonder the same thing. There are, in my opinion, better options closer to downtown than in the suburbs and for similar prices. I'd take an older more central house over a new one with a terrible commute every day of my life.

I know nothing of the school situations though, and if you work in the burbs then obviously that changes things too. It just surprises me to see people go nuts for new builds so far out, especially when I listen to my coworkers complain about their commutes regularly.

I think a lot of it has to do with people not wanting or willing to do renovations buying in an inner city suburb.

Sure you could buy a home for around 400k, however if it needs 100k in upgrades to make it look modern, coupled with the surprises and stress that comes with renos, in a "non-posh" neighbourhood, then most will opt with longer commutes but a new build in a new area.

[OTSkyline]

Yes, unfortunately inner-city or central houses/townhomes are unfordable for most people. To me, I would much rather be central part of town and buy older and renovate than to buy new-build in the 'burbs, but that's not really possible.

I drove around this weekend and stopped at many homes/townhomes that had a for sale sign on the lawn and that were pretty central. Unfortunately, even though many of them were small and very old needing much repairs, all the prices were in the $600-800K range.

[SF Thomas]

Originally Posted by acottawa

I'm a little surprised at how many people discount western Gloucester. There are still pretty decent options in the inner suburbs under 400 (and a fairly easy drive or transit to central Ottawa, even in rush hour).

I guess there are school district issues.

I agree, there are quite a few affordable options in the east end still within the Greenbelt. Its surprising how often it is overlooked.

I've been looking at real-estate listings on and off and have seen town homes listed in neighbourhoods like Manor Park for $350k to $400k. Its just 5km from downtown, and you can bike in 15 minutes or bus in half an hour.

[acottawa]

Originally Posted by OTSkyline

Yes, unfortunately inner-city or central houses/townhomes are unfordable for most people. To me, I would much rather be central part of town and buy older and renovate than to buy new-build in the 'burbs, but that's not really possible.

I drove around this weekend and stopped at many homes/townhomes that had a for sale sign on the lawn and that were pretty central. Unfortunately, even though many of them were small and very old needing much repairs, all the prices were in the $600-800K range.

Check out neighbourhoods near Cyrville and Blair stations. They aren’t glamorous but very convenient. Newish (90s and 00s) townhouses can be had under 400. Commute to downtown will probably be quite short when the LRT opens.

[kwoldtimer]

Originally Posted by SF Thomas

I agree, there are quite a few affordable options in the east end still within the Greenbelt. Its surprising how often it is overlooked.

I've been looking at real-estate listings on and off and have seen town homes listed in neighbourhoods like Manor Park for $350k to $400k. Its just 5km from downtown, and you can bike in 15 minutes or bus in half an hour.

Manor Park east of St Laurent, perhaps, but yes. Newish three bedroom stacks can be had for under $350G, older units for under $300G.

[1overcosc]

Originally Posted by acottawa

Check out neighbourhoods near Cyrville and Blair stations. They aren’t glamorous but very convenient. Newish (90s and 00s) townhouses can be had under 400. Commute to downtown will probably be quite short when the LRT opens.

These areas are probably a very good investment too. Once LRT opens and "matures" (ie. station-area intensification starts happening in good numbers, both phases are complete, bus routes have been improved, etc.) I could see those areas really shooting up in value.