Ottawa real estate continued to sizzle in July with 1,842 unit sales during the month.  This was the highest total in 15 years for the month of July and also represented a 14.2% increase over the number of units sold in July 2018.  The 5 year average for sales in July is 1,579.

Limited listing inventory continued to plague buyers and resulted in a significant uptick in average prices, with the average residential price sold during the month increasing 10.4% to $487,308 and the average condo was up 6.8% to $299,665.

Listing inventory:  some good news!

While listing inventory is still scarce, there was one glimmer of improvement: the number of new listings actually increased for both residential and condo properties during the month, though total listings are still well below historical levels.

New residential listings were 8.6% higher than July 2018 and condos 4.3%.  At month end, however, residential listings were still 20.6% lower than last year and condos 42.5% lower.  This will be a key stat to watch in the coming months to see if the low inventory trend may be reversing.

The lack of listing inventory continues to impact the Ottawa market and there is no apparent let up in sight, as even new listing numbers continue to be in negative territory.

Condos newly listed during May were 5.5% lower than a year ago and residential properties listed were 8.9% lower.  At month’s end, there were 23% fewer residential listings and 40.6% less condos available for sale than at the end of May 2018.

Stellar sales: new listings ratio:
The sales to new listings ratio was an exceptionally high 88% in May.  By comparison, this ratio was only 40% to 50% only 4 or 5 years ago.  A ratio of 40-60% is said to be indicative of a “balanced market” (roughly equal number of buyers and sellers) above 60% is representative of a sellers’ market and below 40%, a buyers’ market.

Despite the inventory scarcity challenge, our market eked out unit sales gains in May, led by condo sales which were up 14.2% for the month.  Residential sales tallied a 4.6% increase over May 2018.  On a year to date basis, residential sales are pretty much flat with last year while condo sales are up 14.2% on the year.

Pricing growth continues:
The average residential property sold for $493,691 during May, an increase of 6.4% vs 2018 and approximately 25% higher than 5 years ago. (May 2014)  The year to date average residential selling price is up 6.6%.  

The average condo sold in May for $297,731, up 5.8% for the month vs a year ago.  On a year to date basis, condo selling prices are up 7.9%

These prices increases are solid but seem rather muted against the listing inventory shortages and the anecdotal reports of offer dates and multiple offers that are dominating the real estate news.

What’s ahead?
June is typically the 2^nd busiest sales month and then we see a slight decrease in unit sales during the summer months but July and August are still the highest volume sales months that will occur until next March or April, so it is still “high season”  for Ottawa real estate.

June is Picture Perfect:
June is also a great month to take exterior photos of your home and property, when everything looks its best.  These photos will come in very handy, for those who end up selling at other times of the year, particularly between October and May, when no leaves are on the trees and landscapes are devoid of interest and colour.

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.

Summary:
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.

Our lower fixed overhead and independent broker status has allowed us to help sellers optimize their selling costs, without giving up any service levels.

We say “optimize” because too often, sellers feel they must either brave the “for-sale-by-owner” challenges or pay a 5% Realtor a large chunk of their accrued equity to get their home sold.  We believe we offer a great middle of the road approach that may be “just right” for many sellers, especially those that are also buying. 

Here are some programs for residential properties currently available: 

Full MLS® listing including buyer representative commission: 3.5% +HST

Buy and Sell with us and pay only 2.5 or 3% full service commission +HST

Exclusive (non MLS®) listing: 2.0% +HST

some conditions apply, not intended to solicit those with existing representation agreements.

You can do the math on what you would save by dealing with us compared to a 5% Realtor but our sellers routinely save $10,000-15,000 by working with us.  Oh yes, and we have been doing this for over 12 years now with hundreds of satisfied customers.

If you wish to see the level of support provided for our MLS® listings, you can click here and we are sure you will see that you get the same level of excellent Realtor support, you expect. https://www.oasisrealtyottawa.com/Sellers_What_we_do_for_you/page_2526954.html

Give us a call and we would be happy to schedule an introductory meeting to discuss your housing plans and to see if you feel there is a good fit for working with us.  You can also check us out further online via our social media sites and blog below.

Gord McCormick, Broker of Record
Principal Broker, Ottawa Real Estate Board
Dawn Davey, Broker
Oasis Realty Brokerage
513-435-4692  613-371-9691
oasisrealty@rogers.com
http://blog.oasisrealtyottawa.com/
www.facebook.com/oasisrealtyottawa
https://twitter.com/OasisrealtyOTT

Many sellers must be asking themselves this question after watching “ For Sale” signs go up and then get marked “ Sold”  in just a few days or seeing endless online posts about how fast a listing has sold and for over asking price.

Seller’s Market:
We are in a sellers’ market in Ottawa in 2018 and listing inventory is scarce, prices are rising and things are selling much more quickly than in a typical balanced market. (a balanced market is one where there are roughly equal numbers of buyers and sellers)

Agents earn their keep…but..
A sellers’ market brings different challenges and experienced Realtor expertise is still important in getting the marketing strategy right and managing the complexities of offer dates, bully offers and multiple offers to a successful result.  Clearly however, the marketing time and cost has to be lower, so shouldn’t the seller get a lower rate?  After all with average prices increasing (8% in March 2018) the Realtor is getting an automatic raise, since their remuneration is based on a % of the selling price?

Why not save $7,000-$14,000?
Our programs offer full MLS® service by two experienced brokers and most of our sellers will save the above commission and HST using our 3.7% or 3% commission programs. (not intended to solicit those with existing representation agreements)

Example provided is based on current residential average selling prices and savings will vary by property being sold.

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

613-435-4692  oasisrealty@rogers.com

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