Ottawa April Sales "spring ahead" seasonally but listing inventory a concern

Published 06 May 13 07:20 AM | Gord McCormick 

April delivered some relatively encouraging residential
sales results with unit sales growing seasonally compared to March but
remaining pretty flat compared to last year. 
Average selling prices were up slightly during the month. These are
positive improvements after several months of downward trend lines.

April Sales:
Residential average price: $396,507  + 2.9%
Condo average price:        $266,596  - 1.8%

Residential transactions:         1,271 + 0.4%
Condo transactions:                   302     0.0

Year to Date:
On a year to date basis however, the # of sales transactions
is still underwater with residential unit sales -9.6 compared to 2012 and condo
unit sales -4.8%.
Average selling prices: 
Residential:  $384,490  +1.5%
Condo:         $263,728  - 2.3%  

Listing inventory: More sellers than buyers?
It is not unusual for listing inventory to peak at this time
of the year as the #1 and #2 busiest sales months are May and June.  Current inventory levels do not look too bad at
first glance with residential listing inventory 14.9% higher than last year and
condos 34.9% higher.  However, the comparison to the 5 year average listing inventory is a
bit of a concern.  Residential listings are
currently 30% higher than the 5 year average at the end of April and the number
of condo listings is a whopping 75% above the 5 year average recorded between
2008 and 2012.
Unless we have some blow out sales months in May and June,
there is going to be excess unsold inventory and continuing price pressure on
sellers to get a deal done.
We have noticed in doing research for clients that in some
neighbourhoods, 30-40% of listed properties have already recorded a price
decrease and in at least one suburban  neighbourhood fully half the  listed properties had recorded a list price

If you would like to research prices in the area you are
planning to buy or sell in, feel free to contact us if you are not already
working with another REALTOR®.

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


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