Little to be thankful for in September results for Ottawa real estate
As we get ready to enjoy our Thanksgiving weekend, the
Ottawa Real Estate Board has just released some less than encouraging results
for the month of September, continuing a trend of spotty results registered
over the last few months.
The number of residential sales transactions was down 17.3%
compared to September 2011 and down 14.6% compared to the 5 year average for
September from 2007-2011.
On the plus side, the average sales prices stayed in
positive territory with the average residential property sold increasing 3.9%
to $374,209 and the average condo average price increased 4.8% to $267,231.
On a year to date basis residential unit sales are up 2.4%
with an average price increase of 1.8%.
Condos through the first 9 months of the year show 5.2% less
units sold (on the resale market) than last year but average prices are up 3.7%
The time it takes to sell the average property has also
increased this year with residential properties taking 43 days (vs 39) and
condos taking 44 days (vs 32)
Overall listing inventory does not look to be in too bad
shape relative to a year ago with the number of residential listings up 1.8%
and the number of condo listings up 23.9%.
One other listing inventory comparison of note is that we
currently have almost 800 more residential and condo listings than we did on
April 1st which is the start of peak selling season in Ottawa real
estate.
Though not a significant number (479) the number of rental
listings on the Ottawa MLS® system is up 39% compared to a year ago and 65%
higher than the 5 year average.
It is somewhat surprising that we have not yet seen a
buildup of listing inventory, given the sales shortfall but the evidence can be
seen in the # of listings that were either cancelled, expired or withdrawn
(1612 during the month of September) This is 13.8% higher than last year and
43.2% higher than the 5 year average. We
can expect to see this number grow even higher or see a jump in listing
inventory, if the current downward unit sales trend continues.
The Greater Ottawa Home Builders Association recently
reported that new home construction sales are off this year by 20-25% compared
to last year, so this further underscores the fact that the market is
slowing.
Based on the current trends we certainly appear to be headed
towards buyers’ market territory after a decade long bull market which has
finally hit some price ceilings and exhausted the uplift afforded by historically
minimal mortgage rates.
We encourage those contemplating their real estate plans to
not base their decision making solely based on headlines they see but rather
consultation customized to their own specific situation. So call your REALTOR® or call us to get
advice and counsel to help make better informed decisions.
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or 613-371-9691
oasisrealty@rogers.com
www.oasisrealtyottawa.com