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Oasis Realty Brokerage, Ottawa Real Estate
Gord McCormick Ottawa, ON K2S0H6
Cell: 613-371-9691
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Work Phone: 613-435-4692
 
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Sales struggle in August and prices slow for 5th straight month


 

Prices still up strongly in August but gains diminishing:

August was another interesting month in Ottawa area reale state, as sales stuggled to keep pace with the 5 year average and trended behind unit sales two years ago.  For the 5th straight month, average selling prices decreased from the peak back at the end of March.

For example, the average residential sellling price in March this year was  a lofty $758,802, a 35% increase over March 2020.  Similarly, the average condo sold for $437,041 up 18%.

By contrast, August residential sales had tapered to $674,449,  a difference of $84,353 or 11.1%, over those 5 months.  Condo average selling prices dropped from $437,041 in March, to $407,148 in August, a decrease of 6.8%. 

Notheless, the average selling prices this year to date are up 27% for residential properties to $722,526 and condos are up 18% to $420,654, though as noted above the trendline is clearly heading in a southerly direction over the last 5 months.

 

Sales suffer from "what do I buy?"  and sticker shock issues:

We believe many buyers are on the sidelines, despite still low interest rates, due to the huge price leaps over the last 2 years. (19.8% increase in 2020 and more this year)

Those with existing homes to sell, have a double issue:  first, how can they be sure of what their current home may now fetch on the market and what will they have to pay to for the type of property they would consider buying.  We believe these impacts are what is stalling sales and even builders seem to have not as easy a time of it, over the last couple of months.  Those buying a new home with a closing date a year or more out, have only their crystal ball to determine, what type of market we may be experiencing then and how long and for how much their current home may sell.

Listing inventory:  Listing inventory is pretty flat vs 2020 but with fewer new listings coming out and sales softening, that is probably a good thing.  New listings to sales ratio, however, is still indicative of sellers market conditions overall, which is somewhat confusing, considering the slowing sales and decreasing prices

We are seeing many, many more conditional sales vs straight out, no inspection-no financing sales that had been the norm for 18 months.  Though there are still a goodly number of firm no condition sales, it is becoming much more balanced.

Check expectations?

Sellers particularly, will really have to check their expectations and take what the market will give them over the next few months, as the red hot sellers, market shows signs of easing.

 


4 Sweetbriar #8 in Barrhaven Now rented!


Rented for Sept 1st! ($1,725/mo) Lovely two bed, 2 bath, upper 2 storey condo is fully updated and move-in-ready. Great location, low maintenance and might be worth a look for a lot of first time buyers, investors, singles or downsizers.  MLS 1250296 on realtor.ca  for full listing details or check out the virtual tour at the link:  https://tours.londonhousephoto.com/84sweet/


SOLD in Greely


this one is gone!  


Flood of March listings doesn't dampen Ottawa market


March sales results show some truly amazing numbers with soaring sales, prices and rock bottom listing inventory.  Would you believe that average residential selling prices have gone up almost $300,000 in just the last 24 months?  click on the link for more details and analysis http://wordpress.point2.com/347490/march-sales-absorb-flood-of-spring-listings/


Super saver listing fee options for 2021


It is a great time to be selling a home and we can help do that and optimize your transaction costs, with 3 commission programs that will save a lot of fees and HST expense on the sale of your residential property. (With absolutely no loss in service!)

3.5% full realtor.ca service for all sellers!
The Federal government relocates as many as 20,000 people annually and their negotiated fee for a full service commission paid to all listing brokers, is only 3.5%.  We offer this to all our residential listing clients but go one step better by offering the typical* 2.5% to the buyer brokerage.

This 2.5% “co-operating brokerage” commission is important, as it is the amount found on 75-80% of MLS® listings and meets the needs of buyer agents.

On a typical $625,000 sale this saves a seller over $10,000 in commission and HST vs a typical 5% listing fee.

3% “Luxury” property rate now an option for all sellers!
We also offer an optional 3% full service package for realtor.ca listings.  This has been normally offered to higher priced properties and involves a 2% payment to the co-operating buyer representative and brokerage.  This saves over $14,000 in commission and HST expense on that average $625,000 property vs 5% commissions.

Exclusive Listings: Only 2%
An exclusive listing is one that does not go on the realtor.ca or MLS® network but is marketed directly by the listing agent.  If we are able to find a buyer without having to pay another Realtor, then we charge only 2%, representing a huge savings vs 5% commissions.  Over $21,000 in savings on that $625K sale vs 5%.

This approach has its pros and cons but may appeal to those who do not wish to have a large number of people through their home during the pandemic and also wish to avoid the wear and tear of an MLS® listing.

Give us a call to see if any of these options might work for you and we would be happy to discuss you plans!  We also have some excellent buyer support services, too.

 Serving city and country clients (within an hour) since 2007.

Not intended to solicit those with existing representation agreements

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


Sellers market continues with red hot prices in February


The Ottawa real estate market belies the ususal winter  "chill", with soaring prices and strong sales, as the sellers' market continues. Super low listing inventory levels and historically microscopic mortgage rates have multiple buyers competing for the same properties and pushing selling prices in to the stratosphere.  It is often unreal, the prices we are seeing on many sales these days.  To be honest, most Realtors would be just as happy to go back to a more pedestrian balanced market, with an approximately equal number of buyers and sellers, fewer bidding wars and more reasonable selling prices.

In short, it is a great time to be selling...but not so much fun buying!  Give us a call if we can help answer your real estate questions or to review your plans 613-435-4692

 

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage


Key market indicators to watch in 2021


Coming out of a very unusual (to say the least!) 2020, Ottawa real estate watchers will want to keep an eye on these critical market indicators:

Listing inventory:
Our residential listing inventory as we start 2021 is down 59.2% from a year ago, which was already down 26.5% from the 2018.  This is the most relevant statistic that translates in to continuing soaring prices, as experienced in 2020 where prices were up approximated 20% for both residential and condo properties.

The inventory shortage in residential properties suggests strong price increases will continue in that category, though the same may not occur with condos that have seen a trend where current listing inventory is above last year’s by 27% at the end of December 2020.  Rental inventory has also surged and is now 38.5% higher than a year ago.

New Listings:
Our strong upward price trend (highest annual increase in 37 years on a % basis in 2020) was driven by the foregoing lack of supply.  This imbalance in supply and demand, along with super low mortgage rates, created the environment for bidding wars and a large % of properties selling over list price.

The number of new listings did increase fairly substantially in the latter half of 2020 but the excess market demand absorbed most of these new listings as demonstrated by the strong monthly sales increases.

New Listings to Sales ratio:
A common indicator of market trend, this ratio compares the number of new listings to sales during a period of time.  If this ratio is less than 40% then we are said to have a buyers’ market.  If the ratio is between 40-60% then “balanced” market conditions are said to exist. (a roughly equal number of buyers and sellers are in the market)  If the ratio is above 60% then a sellers’ market is happening.  Though this statistic is not directly reported by the Board, we have estimated it to have been 70.2% overall (residential and condo properties) for 2020 but even higher for residential properties.

 


Just SOLD in Crystal Beach


This lovely location in ideal Crystal Beach near DND Carling will be hitting the realtor.ca market in a just a few days, when last minute preparatons are completed. (currently on exclusive listing).  Since the property is vacant, it is likely to be available for new owners before the end of February.  List price of $599,900 is very reasonable for this sought after area.

For more detail, click on the link to have a look at the complete listing and photos: 

https://www.oasisrealtyottawa.com/Ottawa/Ontario/Homes/7002/Crystal_Beach/Agent/Listing_417381920.html


Feedback from repeat clients, Judy and Kerry


Gord McCormick of Oasis Realty helped us sell and buy our homes six years ago.  Our experience working with Gord, both as seller and buyer was great.  So when leaving Ottawa meant it was time to sell again our first choice for realtor was Gord McCormick.

Gord did not disappoint.  He gave generously of his time and in-depth knowledge as we prepared to sell.  Then he carried out a marketing strategy that was a perfect fit for the market.  Having received multiple offers, our home sold over list price with no conditions within the first week.  To have such a successful conclusion in such a short time was the best of all worlds.

Gord is a true professional that puts the best interests of his clients first.  He has a consultative style and is always tactful, never pushy and wise in counsel.  Combined with his most effective marketing strategies, you have a realtor that we can most heartily recommend.

Judy & Kerry