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.
June is typically the 2nd 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.