Many sellers face stressful summer in Ottawa real estate
June sales results were generally positive with increases in residential unit sales and average prices but listing inventory continues to grow and make life miserable for many sellers (especially condo sellers). Unit sales and prices for residential properties are up slightly but condo unit sales are down 21% compared to last June and down 15.8% based on a 5 year average for year-to-date sales.
Residential sales are up about 4% year-to-date compared to both the 5 year and 10 year averages at the end of June.
Prices in both property categories are very modest on a year-to-date basis with the average residential property posting a 1.7% increase to $398,051 and the average condo price sold this year is $263,843 for an increase of .5%.
Listing inventory may be the highest ever! Condos double 10 year average, residential +39.2%
We checked back as far as our available stats permit and our current inventory levels are the most for any month during the last 12 years. Though our demand level is reasonable overall, there are just too many sellers in the marketplace. Residential listings continue to increase and are 34.8% higher than the 5 year average and 39.2% higher than the 10 year average. Condo listing inventory is 57.4% higher than the 5 year average and 100% higher than the 10 year average.
On the good news side, many of these sellers will also become buyers if their existing properties sell.
Who is having the most trouble selling?
There are a number of categories that suffer more than others in this type of buyer’s market, best to check with a Realtor to see how these circumstances might affect a particular property. We’ll have a post on this later this week. Condos, unique properties, non “move-in-ready” properties, higher priced listings, FSBO’s and those with excess improvements head the list of “toughest to sell” listings right now.
New home sales off about 20%:
New construction sales and starts are down about 20% this year, so builders are offering significant incentives for buyers to consider new construction. This adds to the competitive choice for buyers but also makes even more competition for the resale listing, particularly for newer homes in areas where the builder is still building the same or similar models.
What to expect this summer/fall:
We expect to see continuing price adjustments by sellers who have now missed the peak spring market which should help keep residential unit sales in positive territory during the summer. Condos may be another matter altogether.
Get it sold by September!
Sellers with committed buying plans or other financial plans who have not had success in marketing their properties will certainly want to be aggressive in getting a deal done before the end of September when sales levels start the fall seasonal decline. (Summer sales levels are about 20-25% lower than spring and fall levels are 40-50% lower than spring)
Save $1,000’s on commissions and get it sold now!
We have some amazing commission saving programs and marketing plans to help ensure sellers get deals done this summer! If you are not already working with another Realtor and would like to discuss selling and/or buying options please give us a call 613-435-4692
* not intended to solicit those with existing representation agreements
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage