The spring housing market is upon us, and I have some friends who are now looking to buy property, and I thought I’d turn this discussion to thoughts on Ottawa’s real-estate market.
Garth Turner, who has just published, “The Greater Fool: The Troubled Future of Real Estate” says no-one should be buying a home now. Others disagree. Loads of economic forecasters say the market will keep rising, although perhaps slower than before. Others say we could be in a condo bubble. Others that condos are solid because of our aging population base. Others say the U.S. economic meltdown will soon hurt our own housing prices. I also find myself wondering about all those people who rushed, as speculators, to buy in Calgary/Edmonton. Forecasts now are that these markets have flat-lined.
It’s a gamble. An old house on my street (Central Ottawa) just sold for well over $500,000, and I thought it was worth about $350,000. These new owners must think it’s worth it.
Well, for those of you who want to buy, but really, really don’t want to lose money – and are not made of it -- here’s my thoughts (okay, I’m no expert, but nonetheless):
First, don’t go into the suburbs. Everyone’s into minimizing their carbon footprints, and that means inner-city neighbourhoods are in. For several years now the city core neighbourhoods have been climbing in value faster than the outlying areas, and I think this trend will continue and intensify. (Besides, studies tell us that suburb life makes people fat and a little less happy than they would have been, country homes excluded).
Second: if you can at all manage it, buy a house that actually has a yard. There are $600,000 properties out there with no yard, and there are $300,000 ones with beautiful back yards. As the city grows, that urban yard will become much more valuable, plus it gives you room to expand (when you can afford it) without having to move.
Third: If you must buy a condo, see #1 and be even more stringent. That’s uber-urban core, and by this I also mean the hip-urban core of areas like Westboro and the Glebe. Places where there’s not a lot of crappy homes/old warehouses that could get torn down for future condos to compete with yours (and glut the market). I’d say, make sure your condo is within a 10 minute walking distance to three coffee shops. Let’s say that two will suffice if said condo is also within a five minute walk to water.
Fourth: Try not to be directly on a busy street. Don’t buy on Main St., or Parkdale, or Holland, or Scott, if you can avoid it. It might seem like a good deal now, but it’ll be hard to sell in the future, especially if there’s a downturn, plus all that carbon-monoxide and extra stress will take years off your life. Not a good deal.
Fifth: Don’t buy somewhere where you can clearly hear the Queensway hum. Again, it’s not just noise pollution, it’s also that carbon monoxide stuff taking years off your life.
Sixth: Do buy in the “annex” neighbourhoods, the poorer cousins to the rich ones. So: Dow’s Lake, Bronson-West/Little Italy/Hintonburg (Mechanicsville), which annex the Glebe and Wellington Village/Westboro. Preferably seek out a neighbourhood that has a cool and already vibrant “High Street”. A main drag that looks like it could develop further. For the strong-willed and smaller budgeted, I’d also suggest Vanier, but close to Beechwood, not MacArthur.
What do you think, are prices going up or down? What Ottawa neighbourhoods are the best ones to buy into now?
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