The Ottawa market has been seeing some very positive unit sales increases since April of this year and the excess inventory problem of the last two years has diminished significantly. One Ottawa Real Estate Board recent press release even wondered if we were on the verge of a “sellers” market, something we haven’t seen in many years here.
Overall Sales Picture through September 2016:
Residential unit sales have increased 6.8% on a year to date basis but average selling prices are only .6% ahead to $396,400.
Condos have seen positive sales growth of 7.4% but prices are also flat at an average of $260,218 which is only .1% higher than a year ago.
Listing Inventory a good story this year on an overall basis:
After a couple of years of heavy listing inventory, we have seen some pretty dramatic decreases over the course of 2016, especially the last 6 months. The number of new listings YTD is down 6.9% and at the end of September residential listing inventory is 18.8% lower than last year and condo inventory is 12.5% lower.
So this is positive news for those considering a listing or sale in the near future, although competitive pressures will vary with each property and location.
Will new mortgage rules impact the market?
There are some opinions saying that the recently announced new mortgage rules from the Federal Government in early October will eliminate up to 15 or 20% of first time buyer but this remains to be seen. If this were true it would certainly have a ripple effect on the overall market.
New Federal Government Relocation fee structure cuts Realtor rates come Jan 1.
The new Federal government rate for Realtor listing fees in Ontario is dropping from 4.1% on the current contract to 3.7% starting January 1, 2017. (this rate was as high as 5% only a few years ago) There was much opinion and concern about this move on a Realtor only facebook group administered by the Ottawa Real Estate Board until the Board cut off further comment. (Commission discussions or other controversial topics, including anything that could be deemed anti-competitive are verboten in organized real estate) If someone you know is potentially moving on the Government’s Integrated Relocation Program (IRP) administered by Brookfield Relocation Services, have them contact us and we are happy to discuss how these changes may affect their next move and how our programs can ensure there is no negative impact to their home sale. (not intended to solicit those with existing representation agreements) 613-435-4692
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage