Oasis Realty Brokerage, Ottawa Real Estate
Gord McCormick Ottawa, ON K2S0H6
Phone: 613-435-4692 Mobile: 613-371-9691
 

"Tick-tock": timelines tightening on 2017 sales


“Tick Tock”: Clock is ticking on selling (& closing) this year

Forgive us if it sounds a little odd to be “counting down” on real estate sales and closings for 2017 but in reality, this is the case as we approach mid-August.  How so, you say?

There are several key factors that create this tightening timeline:

1) Seasonal slowdown:
Our market unit sales volume steadily eases from its peak in April, May and June to the start of winter hibernation in mid to late November when things are really quiet for 60-90 days.  Sales are progressively lower for each month following the end of June to the end of year and unit sales are lowest in December and January. Most buyers don’t want to move in during the winter (if they have a choice) and seeing properties in the winter and making a buying decision is more challenging.

Many buyers also like to get moved in time to enjoy Xmas season in their new home or before the snow flies, in early to mid-December.

2) time-to-sell and time-to-close
Typical selling time in our strong market for midrange properties should be 30 days or so and remember one must add at least a week for a buyer to firm up their conditions.

Most buyers are looking for a 45-60 day closing period, particularly first time buyers or those coming from rental properties where 60 day notice to the existing landlord is required.

3) prep and lead time to get a property on the market:
There are always a few more things to do to get ready for professional photos and for the onslaught of strangers visiting your home at the outset of a listing period.  Realtors need time to schedule photography, sign installation and marketing, so this “prelist” phase in most cases, will be at least 7-10 days.

While every property and sale will differ, adding the above takes somewhere in the order of 75-100 days, so the typical property listed by the end of August, is most likely to sell and close somewhere between mid-November and mid-December.

These timelines may be further skewed or lengthened if the property being sold is a higher priced or unique property or presents some selling challenges.

The best thing a prospective seller can do is to check with a Realtor and see how these timelines apply to their own property and what the likelihood is for success in line with the seller’s expectations.  Though we have a strong market this year and listing inventory is much lower than in recent years, it is important to remember that rate of sale for the balance of the year is quite different than what we have seen in the last 3-6 months.

If you are not currently working with a Realtor, please feel free to give us a call and we will be happy to provide a no cost no obligation market evaluation of your property and how we might be able to assist.  For more information or to get check out more information on Ottawa real estate, please see our online co-ordinates below.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691
oasisrealty@rogers.com   oasisrealtyottawa.com
https://www.facebook.com/oasisrealtyottawa/
@oasisrealtyOTT
   http://blog.oasisrealtyottawa.com/ 

A lower commission brokerage, 11th year in business


Strong sales, low listing inventory at mid-year in 2017 Ottawa market


The Ottawa Real Estate Board (OREB) released June results last week and reported another stellar month of sales and price gains.  Virtually every indicator is positive and suggests signs for continued growth in the months to come. 

Average prices upward bound:
Our best average price increases in many years with the average residential selling price up 7.2% to $427,721 and the average condo up 6% to $274,974 through the first half of 2017.

Unit sales:
Residential unit sales are up by 10.8% and condos by 26.2%.

Good news-bad news on listing inventory: 
 The one somewhat challenging statistic is the continuing decline in new listings (-10.3% year to date) and the overall listing inventory at the end of June which shows the number of residential listings down 27% from a year ago and the condos down 22.2%.  This is a good situation for those selling but not so much for buyers.

These inventory levels suggest continuing strong demand for the foreseeable future. (see chart above for 6 year comparisons)

New home sales up 44%
The Ottawa Home Builders Association reported that housing starts are up 44% this year to date, compared to last-so builders are seeing very strong activity also.  Accordingly, builder prices have bumped up this year and buyer incentives have generally decreased from a year or two ago.

More sales falling through:

Conditional sales that do not firm up normally run about 5 or 6% but we notice that this is up to more like 8 or 10% this year.  This may be caused by buyers who make an offer quickly and then have some buyer remorse.  Another possibility may be sellers are less inclined to adjust prices after home inspections discover some latent issues, thus causing buyers to walk on signed conditional agreements.  Tighter mortgage qualifications may also be a factor.

More offer dates and multiple offers:
We are seeing many more offer dates or “no offers before”, as listing agents try to ensure as many buyers as possible get exposure to the property to optimize value for their sellers.  Ottawa has always been more of an “early-bird-gets-the-worm” type of market but listing scarcity and stronger demand are forcing more agents and sellers to hold back offers. Though multiple offers have increased, it is still not the norm (perhaps 5-10% or fewer), so sellers should not be concerned if they do not receive multiple offers.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691 (mobile)

oasisrealty@rogers.com  oasisrealtyottawa.com

 

Quality brokerage services at lower commissions, 11th year in business

 

 

 


Let's dispel a myth about Ottawa real estate in summer


Let’s dispel a major Ottawa real estate myth:  that summer is “dead” in real estate

It has long been held that summer is dead in real estate and things pick up in the fall…but is it really true?

….not so much, as our research has proven! (See monthly unit sales chart)

We hear this all the time from sellers, home owners and even other Realtors who seem to think that there are two “prime” or “peak” seasons in Ottawa real estate:  spring and fall.  We hear statements like "everyone is on vacation” or “gone to the cottage” etc. thus explaining why real estate “dies” off in the summer and somehow is magically reborn and “things pick up after Labour Day”.

While it is true that summer sales decrease compared to the peak season in May and June, July and August are the next best sales months the market will see until the following April, so serious buyers and sellers should not put their real estate plans “on hold” until the purported "2nd season" in the Fall.

Summer unit sales:  July and August 4th and 5th strongest months

Sales in July and August are some 20-25% less than those in April-May and June but are still usually well ahead of sales in September and October which are a further 10-20% lower, followed by November when sales start to go in to the winter hibernation phase of Ottawa real estate.

New Listings and total listing inventory are also typically higher in the summer months than in the fall and winter, so it is a great time to be buying also.

How did this myth get started?

....hard to say but possibilities include:

After a busy spring season, some Realtors may be looking for a bit of a break themselves, which is hard to do when one has to be “on call” and readily available close by to support a new listing or buyer client.  So if a buyer or seller plans can be deferred a couple of weeks, the Realtor can sneak in some summer vacation time for themselves.

Some Realtors may possibly be trying to save or defer some business activity until Fall, in an attempt to spread out demand (via listing supply) in what is a pretty strong seasonal business. 

Also, some Realtors may feel that for whatever reason, a certain property may get more attention in the fall or they may simply be trying to save some business activity to anchor the balance of their business year, especially with the typically slow winter season approaching from mid-November on.

There may be some valid reasons in terms of market circumstances, competitive listing inventory, seller vacations, property preparation for listing and so forth but let us be perfectly clear:  don’t delay listing your property in July or August because you think business is stronger later!

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691
oasisrealty@rogers.com 

One of Ottawa’s best liked/followed real estate pages: https://www.facebook.com/oasisrealtyottawa/

Our real estate guide/blog: http://blog.oasisrealtyottawa.com/

2 experienced brokers working for you…11th year in business!

 

 


Budget beater: new fiscal year 3.7% special MLS® offering for sellers!


The new government relocation contract calls for full service commission of only 3.7% for Federal employees who are relocating under the government Integrated Relocation Contract (IRP) which is administered by Brookfield Relocation Services.

We are offering this 3.7% rate to residential sellers in our coverage area and you will pay even less if you also buy with us!  (some conditions apply. condos slightly higher at 3.99%

If you are a government employee posted out of Ottawa, we also have a special “enhanced or improved IRP”program rate and strategy that helps ensure your property gets sold quickly. 

Check out the attached blogpost to see why this improved IRP program is necessary: http://blog.oasisrealtyottawa.com/fedbrookfield-irp-contract-cuts-realtor-commission-to-3-7/ 

*not intended to solicit those with existing representation agreements

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692

www.oasisrealtyottawa.com

a lower commission brokerage for sellers!


Ottawa real estate guide