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

April 2018 poised to set records in Ottawa real estate


3rd largest sales month:
April is typically the 3rd largest unit sales month of the year and this year looks to be no exception.  Despite an ever lingering winter, sales have been strong through the first 3 weeks of the year.

Our totally unofficial numbers suggest a sales increase that will be at least in the 10-15% range for the month which would take us over the 2,000 mark for combined residential and condo monthly sales.  (last year there were 1,795 properties sold in April and the 5 year average was 1,613.)

New listings:
April is typically the 2nd largest month for new listing activity and listing activity looks pretty strong this year also and should be equal to or greater than the number of new listings in April 2017.  Given our very tight listing inventory situation, this would be some good news for buyers, as new listings have trended down for much of the last 18 months, but with sales trending strongly up, sellers’ market conditions are expected to continue.

Total listing inventory:
Our current overall listing inventory is not even enough to cover sales for two months, when normally a balanced market would be 4 or 5 months of listing inventory, so no respite foreseen from our current tight inventory with the number 1 (May)  and #2 (June) sales months next up.

Sales to new listings this month:
Again unofficially, our numbers show that the ratio of sales to new listings (and key performance indicator in real estate) is 70.4% during the month of April thus far.  For reference: a balanced market is said to exist when sales: new listings is between 40-60% and a buyer’s market when the ratio drops below 40%. 

Sales cancellations continue on the higher side:
Typically, about 5-6% of conditional sales fall through and do not “ firm” up and result in a completed sale.  Our current run rate on this stat is more like 10-12% or double the normal.  Financing and inspection issues are the principle cause but good old fashioned buyer’s remorse may also be a factor in a hot market where buyers have little time to consider whether to purchase or not.

What to expect?
Expect to see a lot of exclusive and “coming soon” listings, offer dates, “ bully”  offers and multiple offers.
The next few weeks are also the main time for out of town buyers (mostly military, RCMP and other government employees relocating) to be in the market, so activity will be fast and furious.

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

 


Strong March kicks off spring (?) season


March was a turbulent month in Ottawa real estate, as we tried (and mostly failed!) to say goodbye to winter and hello to spring.  Listing scarcity and strong demand continue to drive the market to higher unit sales and average prices while the number of listings continued to decline in this sellers’ market.

Unit sales growth:
March residential unit sales were up 12.3% for the month over last year and 6.5% higher for the quarter, compared to 2017.  These numbers would likely have been even stronger but for the limited listing inventory.

Average prices up:
The average residential selling price was up to $447,561 for the month, an increase of 8% and for year-to-date $438,169 for a 6.6% increase.

Condos have had strong unit sales growth but the overall average selling price is up only slightly. The average selling price for March was $275,592 which is up only .7% from last year.

New listings continue to dwindle:
We saw the usual seasonal surge in listing activity (compared to February)  in March as Realtors and their sellers list for peak season and to take advantage of market conditions but the number of new listings was still down 8.7% for residential properties and 5.4% for condos compared to March last year.

End of month listing inventory:
Residential listing inventory level down 22.6% from last year and 37.4% compared to 2016.  The number of condos available for sale was also down, 18.4% compared to last year and 37% lower than 2 years ago.

With these very low inventory levels at the very beginning our peak selling season, we can expect to see a very challenging market for buyers and increasing price pressure on properties available for sale.

Don’t wait for the open house:
New listings are scarce, so don’t wait for the open house to try and see them and if you see any new signs installed in your neighbourhood of interest, research them immediately.

Buyers are especially well advised to have a knowledgeable Realtor engaged to navigate the tricky purchasing environment this year, this ultra-competitive sellers’ market is not a good place for the amateur or inexperienced.  Offer dates, multiple offers, bully offers, creative offer tactics and management are all required.  Have a strategic and tactical buying plan and also agree a sound selling plan with your Realtor agent.

Government relocation season in high gear:
With the new government fiscal year starting April 1st, our market sees a jump in government relocation listings, as employees list their homes to move to another geographic location.  Many of these are military or RCMP who are moving on the government’s Integrated Relocation Program (IRP).  Many out of town buyers also start to flood Ottawa in to Ottawa during April and May, resulting in May typically being our #1 sales month. (June is #2 and April #3)


Enhanced IRP listing service for Government employees relocating


We offer an enhanced listing program for those moving on the Federal Government's Intergrated Relocation Program (IRP)  we are a Brookfield registered supplier for this program and have been helping families relocate to and from Ottawa for many years.

In a nutshell, our program offers a full 2.5% buyer representative commission the agent and brokerage that brings a buyer to the listed property.  Given the discount government rate (which we offer to all residential sellers!) of only 3.7%, this means many buyer reps would only receive 1.85% commission for their assistance in getting the property sold.  This falls well short of the 2.5% typically expected by most sales people and brokers in our market.

So if you or someone you know is moving out of Ottawa on a government or military posting or transfer, they can rest easy with our program, knowing they will have the full support of any of the 3,000 Ottawa Real Estate Board members who may have a buyer for their property.

For more detail or background, you can see a archived piece on our blog at:  http://blog.oasisrealtyottawa.com/fedbrookfield-irp-contract-cuts-realtor-commission-to-3-7/

 

...or feel free to give us a call at 613-435-4692

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
oasirealty@rogers.com

 


Listing inventory woes continue to dominate 2018 real estate


New listings are down 13-15% vs last year at the end of January 2018 and total listing inventory is 26% lower than a year ago and 33-35% lower than at the end of January 2016.  This sets the stage for a very interesting year in Ottawa real estate.

Upwards price pressure on residential property:
Not surprisingly, there was upwards price pressure on residential sales values with the average house in January selling for $427,487 up 8.8% from a year ago.  This price increase despite a unit sales decrease of 1.1%,, perhaps reflecting lack of buyer choice due to limited listing inventory.

Condo flip side:
The condo market, meanwhile surged 45.4% on unit sales yet the average selling price was 8.6% lower at $263,744.

These results tend not to agree with typical supply/demand principles and will probably even out in the months to come.

“Grey Market” listings:
Some Realtors are keeping listings out of the MLS® market by use of pocket listings, coming soon listings or exclusive listings that do not appear on MLS®.  In a strong market, there is an opportunity to market properties via social media and other 3 party sources and online, so this may be exacerbating the already limited listing inventory.

So if you see a sign or promo that talks about an “exclusive” listing or see a sign that says “coming soon”, these will not appear on the public MLS® sites.  We don’t agree with these practices, in most cases,  but it is up to each individual seller and their Realtor to determine marketing options for their own property.

Generally speaking however, a seller can only be certain of getting the best market value price by having the property exposed to the widest possible market and this is only possible by full blown exposure on the MLS® system.

When you think it about it….it is also the most fair and democratic, too.

We are back from vacation, refreshed and ready to go for another great year in Ottawa real estate and have some super opportunities for those wishing to list pre-season (February especially!) so feel free to give us a call to discuss your buying or selling plans for 2018.

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

12th year in business with lower commission rates for sellers


Budget beater: new fiscal year 3.7% 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