Ottawa buyers continue to chase very scarce listing inventory and even solid price increases don’t seem to be encouraging more homeowners to put their homes on the market. Average price increases in April for both residential (7.4%) and condo (+14.3%) sales were strong, as multiple offers pushed up prices above asking, in one third of all property sales.
Residential sales flat, condo sales continue growth
Residential sales in April continue the flat trend with -.9% few sales than a year ago. On a year to date basis, residential sales are actually down 1.8% vs 2018.
Condo sales have been stronger, posting a 5.3% gain in April and 6.1% year to date.
Price Growth solid:
For our market the average residential selling price is up 6.6% year to date to $473,975 and the average condo is selling for $294,769 up 8.7%. Given the supply/demand imbalance, we should expect those price increases to continue to be strong.
Listing inventory less than 2* months of sales!
Scarcity in listing inventory is driving the market and this does not appear to be improving any time soon. Our current listing inventory tallies less than 2 months of average sales and as we start the busiest two months in our real estate year, this can only continue to push price demand.
Residential listing inventory is 18.3% lower than last year and condo inventory is down a whopping 39.5% from the end of April 2019.
There is no hope in the new listing figures, either, as residential listings in April were pretty much flat (+1.1%) with last year and new condo listings in April were down 22.2%.
Why are listings so low?
There are many factors impacting listing inventory and here are a few that may explain our current shortage of available listings: Some homeowners who have an interest to sell and move may be choosing not to enter the market, because of the difficulty in finding an appropriate new property in this sellers’ market. Limited choice, higher prices, bidding wars and the mortgage stress test are all mentioned as possible contributors.
Market continues with upwards price trend and more pain for most buyers, with no change in the current low listing inventory situation. The Federal election in the Fall may have an impact on the local economy, depending on who is in power afterwards but of course, it is far too early to predict what may happen there.