No signs of spring in Ottawa March real estate results

Published 05 April 13 07:24 AM | Gord McCormick 

Sales down, prices flat but listing inventory is the story in March 2013

A wintry March did nothing to thaw the slowdown in residential real estate results.  The
number of sales transactions was down and prices flat but the key indicator to
watch is listing inventory, as it continues to grow.  Ottawa results are similar to those being
experienced in other parts of the country as well.

Listing Inventory well above 5 year average:
The number of residential listings at the end of March was
13.1% higher than a year ago and the number of condos listed was 28.2%
higher.  When one compares with the 5 year average, current residential listing inventory is 30% higher and condo
inventory is 68% higher.  Normally, a slight rise in listing inventory going in to the busiest 3 months of the year would
not be a major concern but based on recent trends in unit sales, one might
anticipate either continuing pressure on selling prices or some sellers
quitting the market, if they are unable to meet their pricing expectations.  This would further depress
unit sales, as many of these sellers would also be buying but not unless they
can sell their existing property and meet their price expectations.

Unit Sales Down for both residential and condo properties:
The number of condos sold during the month decreased by 8.3%
compared to 2012 and the number of residential unit sales was down 17.8%. On a
year to date basis, unit condo sales are down 7.0 % and residential sales are
down 14.6%.  Overall residential and condo sales were down 15.9% compared to last year and 9% lower than the 5 year
average for March unit sales.

Average prices flat for residential, condo prices dip slightly
The average condo selling price was down 4.1% during the
month and 1.7% year to date while the average residential selling price was up
2.7% for the month and .5% for the first 3 months of the year.

Looking Ahead:
April is normally the 3rd largest unit sales
month (May #1 and June #2) and is therefore very important as it kicks off the
busiest 3 months of the year.  10%
reduction in DND personnel moves will likely have a slowing impact.

Give us a call at 613-435-4692 if you would like some assistance in understanding how the current market conditions affect your own buying or selling plans.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage



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