Ottawa residential real estate market at mid-year: Steady or Slowing?

Published 08 July 12 06:43 AM | Gord McCormick 

Depending on your perspective, June resale results either indicate a steady performance in a balanced market or that the market is showing signs of slowing with both transaction levels and average prices being basically the same as June 2011.

Unit Sales:

Sales transactions declined in the residential resale market in June and selling prices were basically flat overall.  Residential transactions were 3.1% lower than June 2011 and condo sales were 4.7% lower.  A total of 1,660 residential and condo properties were sold versus 1,719 in June 2011 and the 5 year average of 1,712.

On a year to date basis, residential unit sales have shown a 7.7% increase in transactions and resale condo transactions have declined 3.1%.  

Average Selling Prices:

The average residential selling price was $373,756 -0.4% and the average condo sold for $278,447 +0.8% during June and the year to date averages are $379,346 + 1.8% for residential and $270,741 + 4.0% for condos.

Listing Inventory:

Residential listings are pretty balanced with 2.5% more currently listed than a year ago.  Condos meanwhile are showing 24.1% more listings and there are 28.2% more rental listings than a year ago.

The condo resale market and listing inventory is obviously being affected by the large number of new construction buildings coming on stream and with many more in the planning phase, we might expect to see ongoing pressure in this market segment.

While our overall local economy seems sound, there could still be some remaining concern about the impact of ongoing Federal budget restraint programs.

New Mortgage Rules:

The market may lose some entry level buyers with the mortgage tightening rules but we do not see a significant impact from these.  Many mortgage brokers have spoken out against these changes but that is because they do a lot of business on mortgage renewals and debt consolidation re-mortgaging which do not involve a real estate sale.  Therefore, these changes will squeeze some consumers and may impact mortgage broker transaction levels in these non real estate situations, hence their concern. 

Gord McCormick, Broker of Record

Dawn Davey, Broker

613-435-4693 or 613-371-9691

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