Ottawa real estate: May sales OK but listing inventory levels critically high

Published 06 June 14 08:31 AM | Gord McCormick 

Ottawa May Real Estate Results 2014

 

May Sales OK but listing inventory surges to worrisome levels

 

Sales:

Sales results were generally steady (or flat, depending your perspective) in May 2014.  Residential sales transactions showed a slight increase over the 5 year average by 2.5% while condo sales continued to stagnate with 13.9% fewer sales than the 5 year average.

For the first 5 months of the year the number of  residential sales transactions is down 1.2% and condos down 9.1% compared to 2013.

 

Average Selling Prices:

Average selling prices during the month were steady, a little surprising given the listing inventory level. On a year to date basis, the average residential selling price is up 1.3% to $392,108 and the average condo price is up slightly .2% to $263,687.

 

Days-on-market:

The average sale time continues to grow also with the average residential sale taking 47 days this year (vs 41 days last year) and the average condo sale 59 days (vs 46 last year)

 

New Listings in May:

New listings surged again in May with residential listings recorded that were 25.8% higher than the 5 year average and condo listings were 39.8% higher.  While May is typically both the #1 sales month and the #1 month for listing activity, this number of new listings in a flat sales environment is definitely a problem.

 

May End Listing Inventory:

Residential listing inventory at month end is 36.9% higher than the 5 year average (2009-2013) and the number of condo listings is 75.5% higher.  Combined, this means we have almost 3,000 more properties currently listed at this time of year than the average over the 5 year period.

 

Outlook:

Given our late start this spring and the amount of listing inventory; we might expect June to be a fairly strong month for the number of transactions exceeding May as the #1 sales month.  There is no question we have a supply/demand imbalance in favour of buyers, so one might expect to see pressure on average prices. With typical unit sales demand falling off 25% in the summer months, June is definitely the best time for sellers to get a deal done. 

Unless we see a really strong June &/or many sellers quit the market, we can expect to see buyers generally have the upper hand for many months to come.

Builders will also be offering some very interesting incentives both to generate closings over the winter months and also to beat the anticipated $5,000-$8,000 development charge increase which is being voted on by Ottawa City Council on June 15th.

 

To find the best builder new construction deals, give us a call at 613-435-4692-as new home sales and buyer representation is one of our specialities!  Note: we pay a 10-20% new home buyer bonus and also offer excellent listing programs for leading builders in our area!

 

If you would like a no charge no obligation consultation on how these overall market conditions affect your own buying or selling plans, please do not hesitate to give us a call.

*not intended to solicit those with existing representation agreements

 

Gord McCormick, Broker of Record

Dawn Davey, Broker

Oasis Realty Brokerage

613-435-4692

oasisrealty@rogers.com

www.oasisrealtyottawa.com

 


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