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

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 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 do dip compared to the super 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 fall’s 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.

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 all 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 any seller in our coverage area and you will pay even less if you also buy with us!

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