Oasis Realty Brokerage, Ottawa Real Estate
Gord McCormick Ottawa, ON K2S0H6
Cell: 613-371-9691
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Ottawa sales plummet in April lockdown


To no one’s surprise, real estate activity dropped significantly in April as the world grappled with COVID-19.  While real estate and many related services were deemed “essential” in Ontario, only those with significant need to buy or sell were in the market in April.  Here are some highlights from recently released statistics:

April sales plunge 55%
While March sales had been strong, with skyrocketing prices in our inventory challenged sellers’ market, there were already indications that April would be a whole new ball game.  Showing Time® which is a 3rd party software and services organization that our Board uses to schedule and manage property showings, reported an 81.1% drop in showing activity across Ontario between March 12th and March 30th.  Not surprisingly, this drop-off in showing activity was followed by unit sales in April which plunged 56% for residential properties and 51% for condos.

Average selling prices rise 6%+
The average residential selling price during April was up 6.8% to $521,694 and the average condo sold for $321,813. (up 6.3%)  If this seems to be a bit of a surprise, given the relative lack of overall sales, it can probably be explained by the level and prices of available supply.

New listings and total inventory still very low:
New listings also showed a dramatic decrease during April of 57.3% mirroring the lack of sales.  This can perhaps be considered a bit of a silver lining, as it keeps the diminished demand in some balance with supply.  One key statistic industry watchers consider is the sales to new listing ratio.  In April, this ratio was still a healthy 76% which normally would be indicative of a sellers’ market. So there are still a lot of serious buyers relative to the number of listings available. Month end listing inventory is 48% lower than a year ago.

Most military moves on hold:
An important activity in our spring market is the onset of military and other Federal government moves, corresponding with the new government fiscal year in April.  Only the most mission critical of these moves are happening and most have been delayed.  Though our Board is not able to keep stats on this portion of our market, from our analysis of April sales, it would appear that as much as 20% of our sales shortfall could be attributed to stalled government moves.  These may occur later or throughout the year but it will also have a negative effect on both May and June sales, as this is when most of these purchases and sales for those posted to or from Ottawa occur.

How will the rest of the spring play out?
May is typically the # 1 sales month and June is typically #2. (April is 3rd)  Assuming a continuation of existing conditions, it is hard to see May sales surpass those recorded in March this year.

Will prices be dropping?
A lot of buyers may be thinking that prices are bound to drop and while they are certainly likely to plateau somewhat, history shows that there is little chance of a significant drop in overall average price levels. In the history of the Ottawa Real Estate Board, average selling prices over the course of a full year have only decreased 4 times (1961, 1962, 1995,1996) and the largest of those annual decreases was in 1961 at the height of the Cuban Missile Crisis. 

What is generally more likely to happen if the economic fallout from C-19 is extended, is that real estate just totally stagnates and few choose to either buy or sell.  This was the situation in the 1990’s which resulted in years of moribund sales activity, prices that weren’t advancing and a huge decline in the number of real estate agents.  Ottawa started the 1990’s with somewhere around 2,800 Board members and that number was down to 1,300 by the middle of the decade.  It actually took until 2009 before the Board reached that 2,800 membership number again.

The average selling price during the whole decade of the 1990’s only increased by a total of 8.9% over the decade or less than 1% per year.
It is true that prices tend to follow sales and inventory level trends and with sales and new listings falling in tandem, thus far there is price support, though sellers should not be overly aggressive with their price expectations.  Surprisingly, we are still seeing a fair number of multiple offer situations but far, far fewer than was the case prior to mid-March.

Buying and selling in the same market:
The good news-bad news about the market “pivot” (as the Board calls it) is that those who choose to both buy and sell right now, are doing so under the same market conditions. 

New construction:
Most builders are still actively completing homes that are under construction, though there are many delays in possession dates.  Builders have closed their sales centres and model homes but like Realtors are going to considerable lengths to accommodate buyers and sustain business by whatever means they can and we continue to see new lot releases and promotions.  No statistics available to gauge builder sales results but it would make sense that is somewhat similar to the resale market.

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

www.oasisrealtyottawa.com

 

 

 

 

 


listing inventory numbers highlight sellers' market


As most will know, we have been experiencing a sellers' market for some time now, as demand far exceeds available supply and prices are being pushed up. (approx 9% for the year 2019 on average)  The table below really quantifies the problem, as it shows the number of actual properties listed at the end of January over the last 5 years.

Listing inventory: total residential and condo properties listed
End January        2020: 1,670  -41.7% vs 2019
                            2019:  2,866 
                            2018:  3,732
                            2017:  4,636
                            2016:  5,621  buyer’s market to start 2016 to balanced market by year end.
                            2015:  5,754  We were in a buyer’s market in 2015, hence this elevated level.

So while this makes selling generally easier...buying in this market is anything but.....


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

November 2019


Found, competed, inspected and firmed up!


 

A super listing popped up recently and we are very proud to have helped our buyers secure their dream home!

This late in the year listing was properly priced for a quick sale by the listing agent, so we found our buyers competing with many other buyers for this property.  Our buyers were aggressive and came in with a sound offer price and with appropriate conditions for this well maintained country residential property.

With expert help from mortgage broker par excellence, Leo Maiorino and uber inspectors Steve Ott and Moe Rayyes, the buyers were able to firm up the purchase and start packing for a timely move.

Congratulations and thanks to all involved!

Gord McCormick, Broker of Record

Dawn Davey, Broker

 

 


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Equity saver listing fees with full MLS Broker support


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 suburban 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 13 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


Do I still need to pay 5% to sell in a hot market?


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

For real estate news and information at one of Ottawa’s best liked facebook pages, check us out at: https://www.facebook.com/oasisrealtyottawa/


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