It is no secret that Ottawa is the hottest housing market in the country right now. In Ottawa, one of the most active segments is the $400,000 to $480,000 price range. Our team was engaged by Heather and Byron who were relocating to Ottawa. Unfortunately for them, they were in this HUNGER GAMES price range. This is their story!
Day 1
We spent all day looking through various neighbourhoods in the city. We found a great house in Chapel Hill. It was a bit underpriced and judging by the multiple showings during our visit we knew it was going to be competitive. In the end we were notified there was 11 offers on the table! Let the games begin.
Offer 1
List Price$400,000
Our Bid$426,000
The winner was $451,000 with no conditions in the offer. 11 offers total. We were told our offer was in the top 1/3 of offers.
Me learning the news:
Day 2
More viewings and a new listing came up in the afternoon that we are the very first buyers into see. Excited at potentially doing this quickly. It is a holiday Monday and we figure this gives us an advantage. Beauty house on Steeple Chase in Kanata. We have our offer in within hours of listing. Afterwards, 3 other offers come in that afternoon. We know we have to go high to secure it. We make a very strong offer.
Offer 2
List Price$489,900
Our Bid$521,000
We felt very good about our offer. Unfortunately, they get a higher offer and we lose out again! The hunger games continue…
Pretty sure this is what the seller looked like:
Day 3
Time is starting to play a factor here. We need to secure something. A listing comes on the market at 9:30 am in Stittsville. We are in the house at 10:30 am and can’t believe our luck! It is a beauty. It is grossly underpriced for today’s market. They basically priced it at last years numbers. We head back to the office to chat about it. Before we can do much the agent calls and they have an offer on the table already. An hour later they already have 4 offers. They are presenting that afternoon at 4:30 pm. This is a bit of a problem because another house we liked was presenting at 6:00 pm. What one do we choose? We ended up putting an expiry of our offer of 6:00 pm for the first one so if we lost we could pursue the next. We go way over asking on this one!
Offer 3
List Price $439,900
Our Bid$476,000
Feeling a bit overconfident on this offer. Really strong but we ended up in second place! Luckily we found out just before 6:00 pm and bid on another home.
A surprising loss, time for a drink!
Offer 4
List Price$424,900
Our Bid$441,00
The house was really one of their favourites all along. We just didn’t want to overpay and felt our offer was a bit conservative. Funny that we were all not feeling overly confident on this one and then the call came in that the house was secured!! The hunger games were complete!!
WINNER!
The inspection was flawless and my clients went home happy.
Imagine all of the showings, paperwork, emotions, and stress of the 3 days above. It is not easy buying a house on any HHT let alone one in this market. At the end of the day, we got the job done and the clients are super happy with the process and the house they secured. That is what it is all about and why I love my job. It can be long days but it is hard to have a more rewarding feeling than making the call to let my clients know they have secured their dream home.
With our team the odds will always be in favour of our clients!
The DND at the Nortel complex is starting to fill up with civil servants and military personnel on route to the estimated 9300 people that will eventually work there. This has created a parking shortage. There are only enough spots for about half of the employees that are expected to work there. In May of this year, all parking passes will be revoked and a new lottery system will be put in place. Essentially you will have to win your parking space (you still have to pay $35/month). It is designed to make it fair to everyone. This has angered some civil servants who feel that the location is remote and poorly served by bus routes. DND personal fired back that they have no obligation to provide parking and that having a space is a privilege, not a right.
If you carpool you will be able to get a pass much easier. DND is encouraging people to carpool and has even set up a site where people can sign up for it. This is the only sure-fire way to get yourself a parking pass.
Being posted to Ottawa this year could mean a fairly challenging house hunting trip. Statistics released from the board in March revealed that sales were down almost 12% over last year. This is due to the lack of houses available for sale. There are so many buyers just waiting for houses to get listed. The lack of supply and strong demand continues to put upward pressure on prices. It also brings a unique set of challenges for our military clients. Many homes this year are listing on one day and then holding offers for about 5 days. This is something to take into account when you are planning your Ottawa HHT. We could always do what’s called a bully offer whereby one submits a strong offer before the presentation date but many sellers might not go for it.
FaceTime showings?
I had a recent military client put an offer in, based on a FaceTime walkthrough we had. This strategy is not for everyone but can help narrow some houses down before you arrive for your Ottawa house hunting trip. We will do everything we can to make your HHT as smooth as possible.
Relocating to Ottawa? Fill out our HHT Buyer Criteria Form to start your Ottawa home search today.
CAF RP (RELOCATION PROGRAM) SERVICE DELIVERY – IMPROVEMENTS APS
UNCLASSIFIED
BASED ON CAF MEMBERS’ AND THEIR FAMILIES’ FEEDBACK ABOUT THE BGRS RELOCATION SERVICES, THE CMP TEAM HAS IMPLEMENTED SERVICE DELIVERY AMENDMENTS TO IMPROVE THE RELOCATION EXPERIENCE
THE MAJOR CONTRACT AMENDMENTS FOR APS 2019 ARE AS FOLLOW:
INDIVIDUAL PLANNING SESSIONS WILL BE SCHEDULED WITH THE MEMBER. THE FIRST SESSION WILL TAKE PLACE WITHIN 5 BUSINESS DAYS OF REGISTRATION. THE BGRS AGENT WILL OUTLINE THE FUNDAMENTALS ON PROCESSES, WEBSITE NAVIGATION AND ADDRESS THE MEMBER S QUESTIONS AND CONCERNS. FOLLOW-ON SESSIONS ARE AVAILABLE AND CAN COVER HOUSE HUNTING TRIPS (HHT), TRANSPORT TO NEW LOCATION, CLAIM FINALIZATION OR OTHER SPECIFIC TOPICS AS REQUIRED/REQUESTED. TIMING IS SCHEDULED BY THE MEMBER. GENERAL INQUIRES MAY BE MADE DURING WORKDAYS FROM 0800-2000HRS EASTERN
THIRD-PARTY SERVICE PROVIDER (TPSP) PAYMENTS. BGRS WILL NOW BE RESPONSIBLE TO PAY PARTICIPATING TPSP LIKE HOME INSPECTION, LEGAL FEES, APPRAISAL, REAL ESTATE COMMISSION AND RENTAL SEARCH ASSISTANCE FEE. THIS WILL REDUCE MEMBERS’ WORKLOAD AS NO ADVANCES OR CLAIMS ARE REQUIRED. MEMBERS MAY ALSO CHOOSE TO USE NON-PARTICIPATING TPSP (NOT LISTED IN THE DIRECTORY). IN THOSE CASES, THE MEMBER WILL HAVE TO REQUEST AN ADVANCE IF NECESSARY, PAY THE TPSP, AND CLAIM THE REIMBURSEMENT. THE MEMBER WILL ALSO BE RESPONSIBLE FOR ANY NON-APPROVED FEES
THE PAYMENT CARD HAS BEEN ELIMINATED. ALL FUNDS DUE TO THE MEMBER WILL BE RECEIVED THROUGH ELECTRONIC FUND TRANSFER
THE SERVICES ARE NOW AVAILABLE THROUGH THE BGRS WEBSITE AND THE MOBILE APP
TO HELP FACILITATE A SMOOTH RELOCATION FOR MEMBERS AND THEIR FAMILIES, MEMBERS WILL BE GIVEN TIME DURING THEIR WORK DAY TO ORGANIZE THEIR MOVES. SPECIFICALLY, FOLLOWING REGISTRATION WITH BGRS, THE CHAIN OF COMMAND IS TO PROVIDE EACH POSTED MEMBER A HALF DAY TO CONDUCT THEIR FIRST CALL WITH THEIR BGRS AGENT AND TO FAMILIARIZE THEMSELVES WITH THE ONLINE SERVICE. IF THERE IS STILL AN ISSUE UNDERSTANDING THE PROCESS, MEMBERS CAN CALL THEIR AGENT FOR CLARIFICATION. IN ADDITION, MEMBERS WILL BE GIVEN RELOCATION ADMINISTRATIVE TIME AS REQUIRED. THIS WILL BE CONDUCTED IN 1-2 HOUR BLOCKS, IN COORDINATION WITH THE MEMBER’S CHAIN OF COMMAND. FOR NEW MEMBERS WHO HAVE JUST COME OFF THE BTL THE CHAIN OF COMMAND IS TO ENSURE THEY HAVE ACCESS TO COMPUTERS
MEMBERS WILL HAVE FURTHER DETAILS ON THE PROCESS IN THEIR POSTING MESSAGES, INCLUDING HOW TO ACCESS THE BGRS WEBSITE AND WHO TO CONTACT IN CASE OF ISSUES WITH THE SITE. MEMBERS CAN EXPECT THEIR CLAIMS TO BE SETTLED WITHIN 15 BUSINESS DAYS OF BGRS RECEIVING THE REQUIRED INFORMATION
TO ENSURE THE PROCESS AND THE CHANGES ARE VERY CLEAR TO MEMBERS, WING AND BASE REPRESENTATIVES WILL MEET FOR A THOROUGH EXPLANATION ON 27 MARCH, IN OTTAWA
IN CASE OF DIFFICULTIES, MEMBERS WILL BE ABLE TO CONSULT BGRS, THE CFIRP COORDINATOR OR DIRECTOR RELOCATION BUSINESS MANAGEMENT. THIS INFORMATION AND SPECIFIC DIRECTION FOR USING THE BGRS SERVICE HAVE BEEN INCLUDED IN EACH MEMBER S POSTING MESSAGE
MEMBER S SATISFACTION WILL CONTINUE TO BE MEASURED VIA AN ANNUAL SURVEY RELEASED AFTER THE APS AND CAF WILL CONTINUE TO MONITOR FEEDBACK FOR FUTURE RELOCATION EXPERIENCE IMPROVEMENTS
COMMENTS AND CONCERNS CAN BE ADDRESSED TO DRBM POSITIONAL MAILBOX AT: DRBM2(UNDERSCORE)CFIRP-DGAR2(UNDERSCORE)DPRFC AT FORCES.GC.CA
There is no sugarcoating that if you are posted to Ottawa this year, your HHT may be challenging. Our inventory is down 20% over last year and 40% over 2017 numbers. It is bordering a housing crisis, considering the insatiable demand. Prices are still affordable but buyers are competing and putting upward pressure on prices. I really believe this could be the last year or two of prices that fall within the affordability index with average income levels of the city.
As you may know, we work with dozens of military buyers who get transferred into and out of Ottawa each year. I have been proactive in building up a database of off-market listings. This weekend we have 2 properties that we are showing to a couple on their HHT that are exclusive listings. They will be contenders for them. As an example of our proactiveness, we have sent this letter to 10,000 households in the West end of Ottawa:
Our team is serious about making your house hunting trip in Ottawa successful. Please get in touch to discuss how we can be of service to you.
With DND now located in West Ottawa and the operational headquarters slated for Shirley’s Bay, military buyers have shifted as well. Many of my relocation clients still have Kanata, Barrhaven, and Stittsville at the top of their list. However, many others are starting to look at better value options in Carleton Place and Richmond. Here is a quick comparison of the two locations for you.
Richmond
Richmond is a quaint village that is just south of the Kanata/Stittsville area. There are about 4400 residents and lots of new development happening in the area. This will be a very fast growing community over the upcoming few years. What used to be a small farming village is now becoming a bustling place as new restaurants and amenities are coming in to satisfy the new demographics. The Richmond Fair is not to be missed. Nice small town community feel. Still part of the city of Ottawa.
Distance: The commute to DND is about 21 minutes
Average Sale Price: $467,131
Based on MLS residential sales from Jan 1, 2018 to Dec 31, 2018
Carleton Place
Carleton Place has been growing at a record pace ever since the highway between it and Ottawa was extended to 4 lanes. It is now home to over 11,000 residents. Military buyers are attracted to this location because of the relatively affordable prices and the fact that Carleton Place now has all the big box stores and amenities that many buyers are looking for. Please note that unlike Richmond, Carleton Place is not part of the city of Ottawa. You do pay slightly higher property taxes on average.
Distance: The commute to DND is relatively painless at about 28 minutes in no traffic
Average Sale Price: $326,781
Based on MLS residential sales from Jan 1, 2018 to Dec 31, 2018
Our team has just invested in a moving concierge program that will be a game changer for our clients. This new platform will assist our clients with everything from changing addresses, transferring home services, updating identification, and getting helpful advice. This can include anything from setting up short term Airbnb accommodations to organizing moving company quotes. Each client will have a dedicated concierge agent. We are completely committed to the client experience. We hope this new service will bring value to our clients and make the transition into the new home as easy as possible.
When I set out last year to undertake this exercise I was optimistic 2018 was going to be a good year. I could not predict just how hot our market was going to be. Early in the year, there was a significant shortage of housing inventory across the city. This of course is a huge challenge for my military clients who are coming in for their house hunting trips. Low inventory makes it extremely challenging to find something on the time crunch of a house hunting trip. Especially in the most active price ranges. The most price range in 2018 was 300-450k. In many cases, our clients were offering against as many as a dozen or more other buyers. This is common practice in cities like Toronto but a newer phenomenon here in Ottawa. There was lots of newer inventory by Spring but it only helped marginally. It was still a seller’s market but as the year went on it became less competitive for properties. Instead of 12 offers on many of the listings, we started seeing 2-4 offers depending on price range. This past year I was able to match up 3 military clients with off market properties. This really helped. We always have “off market” opportunities that we can offer to our preferred military clients on their Ottawa House hunting trips. To better understand the market it is good to look at the stats. Let’s have a look at the numbers driving our market.
KEY INDICATORS
AFFORDABILITY
Ottawa households have one of the highest household income averages in Canada. If you see the graph on the following page you can see that prices are still relatively affordable for Ottawa buyers. This graph looks very different for buyers in cities like Vancouver and Toronto. This is taken from the popular military neighbourhood of Fairwinds in Stittsville.
IMMIGRATION
If you Google best places to migrate to in Canada, Ottawa seems to be the number one choice. I am seeing many more immigrants choose Ottawa as their final destination. Toronto and Montreal are of course popular but when someone researches where to live in Canada, Ottawa comes out close to number one in almost all categories.
The common misconception out there is that these immigrants do not have the funds to purchase real estate. That is not always the case. In many instances, it is their credit or lack thereof that may be holding them back. In any case, these immigrants are coming at a record pace and will likely be purchasing real estate in the future.
MORTGAGE RULES AND INTEREST RATES
Banks have been forced to stress test buyers at a full 2 percentage points higher than the interest rate of their mortgage. This can impact purchasing power by almost 20%. I see the need for this but as house prices rise in major market centres there has been plenty of pushback. Interest rates have been slowly rising and this has put pressure on affordability for some buyers. If this trend continues it will have an impact on the market for sure. With the economy being more sluggish, the need for further increases may be curbed.
LOCAL ECONOMY
Ottawa has always been an underrated city in my view. We have a strong local economy with one of the highest median household income averages in Canada. Our unemployment rate is at historically low levels. It is a prototypical government town that has a growing technology sector and lots of solid, high paying professional jobs. It is only a matter of time before our prices surge and we become a global player in real estate. For a world-class capital city our prices still might be a bargain. Time will tell!
ELECTION YEAR
Housing affordability has climbed up to be one of the top issues for millennials. This makes it an election issue. A recent poll found that 64% of millennial voters want the government to do something about climbing prices. We will see the politicians respective platforms later this year. My prediction is that some of these platforms will have policies that will make it easier or more affordable for buyers to purchase. It could mean the return of 30-year amortizations. The stress tests might be eased or there could be a new policy altogether. Something to watch for sure.
MILITARY AND TECHNOLOGY
The DND move to the Nortel campus has been a major factor in the recent price appreciation in many of Ottawa’s west neighbourhoods. Interestingly, it is still a few years away from being fully operational as they phase employees into the new headquarters. In 2018 there was a major announcement that another prominent military operation headquarters will be built in close proximity within 10 years. The new building will house over 4500 employees. This will have an impact down the road on our real estate market. The location has not yet been announced but I have heard it will be at Shirley’s Bay just west of the DND. Once operational the mili
GROWTH AND INFRASTRUCTURE
Ottawa is growing and maturing into a world-class city. We should all be grateful to live in a city with such a high quality of life. By March we will have light rail going right downtown that will make life easier for commuters. This will just be the start of a much broader transportation plan. We have a super hospital that will be coming online in the years to come. Lebreton will eventually get the green light for redevelopment. Lots to be excited about. These will help fuel our economic growth in the years ahead.
2019 FORECAST
I believe it will be another strong resale year for Ottawa homebuyers and sellers in 2019. There is still pent-up demand and lots of buyers looking to purchase. This was reinforced just before Christmas as our team was involved in 2 multiple bid situations in the Fairwinds area. The targets were modern semi-detached townhomes, one that we sold for a record price with 3 offers. This is not the kind of activity you would typically see just before Christmas. It is indicative of the market in the entry level price points. The $350k-450k market will continue to be red hot this year. I have spoken with a few builders who had record years. Next year many homebuyers will be on the move to their newly built homes. This will hopefully create some much-needed inventory in 2019.
I predict we will have another seller’s market that will slowly slide to a balanced market by the time 2019 is complete. Barring an international crisis, it will be another great year for the Ottawa Real Estate market.
If you are curious about your homes worth please fill in this form for a no-obligation market assessment.
To support the aircraft testing, staff will be relocating to Ottawa and the existing Alberta military facilities will be shutting down to create the new centre of excellence in Ottawa. The Aerospace Engineering Test Establishment (AETE) has been at Cold Lake, Alberta since 1971 and will be relocated to the international airport in Ottawa and partnered with National Research Council Flight Research Laboratory and Transport Canada Aircraft Services Directorate. Of the 166 military personnel and 22 public servants that are employed there, one-third of the unit will be affected and the remaining two-thirds will be reassigned to other air force functions.
The move will save approx. $14 million a year and free up space for the arrival of more fighter jets at the Cold Lake location. Canada is currently committed to purchasing 88 new jets to replace the existing fleet of CF-18s and in the process of purchasing used fighter aircraft from Australia.
