Ottawa sellers adjust price expectations to get deals done in July 2014

Published 07 August 14 11:32 AM | Gord McCormick 

 

Our continuing heavy listing inventory conditions continue through mid-summer and we believe sellers adjusted their price expectations to get deals done in July. 

July sales transactions trend:

On a transaction basis, sales were pretty good in July:  residential properties recording a solid increase of 10.9% compared to 2013 and also compared favourably compared to the 5 year average. (+ 12.9%)

Condo resales continued to stagnate and were 4% lower than 2013 and 13.5% lower than the 5 year average (2009-2013)

 

Average price of properties sold in July:

The average price of residential properties sold in July was $377,791 a decrease of .8% compared to July 2013.  The average condo sold was $261,663 a decline of 5.3%.  The Ottawa Real Estate Board notes in their press release that there appears to be a higher balance of sale (% of total) in lower priced or entry level properties thus skewing the average prices lower.  Though this may be true, it is clearly a very price sensitive market and on a year to date basis prices are generally pretty flat overall.  Based on the amount of “marked down” listing inventory and the amount of recycled listings, we clearly have a market

 

Listing inventory leaps again in July!

By far the most worrisome statistic is the amount of listing inventory.  Our July end residential listing inventory is 14.4% higher than 2013 and 41.6% higher than the 5 year average!  The condo numbers are even worse with a 14.7% increase in the number of listings compared to last year and 79% higher than the 5 year average. (2009-2013) This translates to 1,000 more properties for sale now than at the end of July last year and almost 3,000 more than the 5 year average.

Total inventory also translates to about 9 months of expected sales, even if there are no other new listings, so this will continue to be a tough market for sellers.

 

Year-to-date:

Residential sales for the year are slightly higher in transactions by 1.7% and the average price of properties sold is 1% higher at $389,078.

Condo sales transactions are off by 6.5% and the average price of the resale condo sold has dropped slightly by 1.2% to $262,345.

 

Cumulative-days-on-market:

The average residential property has taken 71 days to sell this year and average condo 86 days.

 

It really pays to consult a REALTOR® to find out what is going in your area/neighbourhood and help you build a plan for success in buying or selling.  If you are not already engaged with another real estate professional, by all means give us a call.  613-435-4692

*We have a special FREE professional photo offer and a commission rate hold incentive for those thinking of selling in 2015.

* not intended to solicit those with existing representation agreements 

 

Gord McCormick, Broker of Record

Dawn Davey, Broker

Oasis Realty Brokerage

613-435-4692

www.oasisrealtyottawa.com

 


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