"Chilly" January continues 7 month trend in Ottawa real estate
Transactions and
residential average selling price dip:
Ottawa got off to an even slower start than usual, posting
an 11.7% decrease in the number of sales transactions in January with 602
residential and condo units being sold.
The average residential selling price declined by 2.5% to
$364,011 compared to January 2012, while the price of the average condo sold
during the month increased 6.1% to $268,604.
Trend continues:
Looking back over the last year, one can see that the
downward trend in sales transactions started mid last year. May 2012 was a solid sales month with a 14.3%
increase in the number of transactions.
Since then average transactions have declined by an average of 7.1%
overall with only two months in marginally positive territory.
So what’s going
on?
Many pundits and our Board believe that the government
measures intended to “cool” the housing market are having some effect and there
is probably some merit in this position.
We also believe think that the market has just gotten
“tired” and is experiencing a period of stagnation, where some buyers and
sellers sit on the sidelines trying to figure out which way the market is going
and what is best for them.
The shift in the balance of sale towards condos, townhouses
and semi-detached properties and away from single family residential housing is
probably having some impact on demand and pricing for older residential
properties.
Buyer and Seller expectations:
we think there is a more of a gap than usual between what sellers expect for their properties and what buyers are willing or able to pay. If this is true it will result in a further slowing of sales &/or a decrease in average prices for properties sold.
Will we see a drop in prices?
There will certainly be some pressure on prices for those sellers who have to sell, as some buyers will take aggressive positions to get a deal done. However, sellers who don’t really have to move may simply abandon the market if they are unable to get the price they were expecting. Since it takes a willing buyer and seller to get a deal done, this may result in fewer sales and we are already seeing some of this.
Listing Inventories:
The number of overall residential and condo listings is 10% more than than a year ago but 39% higher than end January 2011 and 75% higher than January 2010-so this could point to a developing supply demand imbalance if sales transactions remain below previous years levels.
If we can assist you with your 2013 housing plans, by all
means give us a call to discuss your specific situation in light of current
market conditions.
Regards,
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or cell/text 613-371-9691
www.oasisrealtyottawa.com
oasisrealty@rogers.com