Is a buyer's market coming to Ottawa real estate? ...or is it already here?

Published 07 July 14 07:05 AM | Gord McCormick 

Ottawa Real Estate: June 2014 results

 

Listing inventory level remains key issue in very competitive Ottawa Market

 

June Sales:

Depending on your point of view, June sales were either steady or lacklustre with residential properties showing a slight increase in both # of transactions (over a slow June 2013) and average prices increased 1.8% during the month.  Condos sales were flat and average prices -2.8% lower than last year

 

Year-to-date sales:

For the first half of the year sales for residential properties are almost identical to 2013 while the # of condo sales has decreased by 7.1%

Average prices for residential properties sold this year have eked out a 1.4% increase to $391,374 and the average condo sale registered this year is off -.5% at $262,469.

 

Listing Inventory:

Listing inventory for residential properties at the end of June is 37.2% higher than the 5 year average from 2009-2013. New residential listings during the month were the highest recorded during the month of June during the last 10 years.

Condo listings are 79.3% higher than the average over the last 5 years.

 

Contributing Factors:

We believe military moves have both decreased and been delayed this year, due to budget issues at DND.

Builders are facing higher development fees with the City of Ottawa 5 year review being completed and 22% to 31% higher fees expected as early as October 1st. ($5,000-$8,000 per house/unit) Builders may have prebuilt inventory to avoid the pending higher fees and are also seeing either flat or declining unit sales, so buyer incentives have been quite strong compared to the recent past.

Many sellers are also buyers and if they cannot get their existing home sold or sold at an acceptable price, then they are not in a position to become buyers.

 

Seller challenges:

Listing price is even more critical in this market which favours buyers and sellers have to remember to stay on top of all resale listing competition and new construction homes in their area.  As competitive listings change prices or builders change their offerings, sellers have to be prepared to act accordingly.  As houses sell, those still listed need to be in tune with actual selling prices and determine if this impacts the opportunity for their own listing.

 

With peak spring selling season now behind us, we expect to see a very interesting summer, as listings battle it out for available buyers and perhaps with the market seeing some sellers quit the market to either make updates to their property or anticipate relisting at another time.  As noted in the article below, however, summer is still the best chance to get properties sold until we hit the spring market next March/April-so sellers should aggressively have their properties positioned right now.  *If you are considering a summer sale, please give us a call and we will be glad to share our thoughts on how you might best approach what is bordering on a “buyer’s market” (if we are not already there!)

*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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