Ottawa real estate Feb 2015: Listing inventory continues to pile up while sales and prices stagnate
Frigid
February 2015 Freezes Ottawa Real Estate:
No surprise that it was tough sledding in Ottawa real estate
in February. Record setting cold during
the month certainly deterred many buyers, so hopefully they will be back in the
market for the spring season.
Unit sales
down, prices flat:
Monthly unit sales were mostly flat compared to equally dull
results recorded in February 2014. Based
on 5 year averages, residential sales during the month were down 6% and condo
sales a whopping 30%.
The average condo selling price increased slightly during
the month, while the average residential selling price was flat with a slight
decrease of .3%. Year to date average
prices are flat for both residential and condo properties.
Will
spring sales melt listing inventory and bring a flood of sales?
Listing inventory continues to grow well beyond expected
accumulation in advance of the busy spring sales season. Residential listing inventory at the end of
February was 9% high than last year and 31.8% higher than the 5 year average. Condo inventory was 5% higher than last year
and 58.2% higher than the 5 year average.
This clearly says there are more sellers in the market than buyers and this
represents about 2,000 more listings currently available right now and with 3
of heaviest listing months ahead of us.
If sales do not increase significantly, we can expect our buyer’s market
conditions to continue with significant pressure on selling prices for most
properties.
Higher
end listing inventory most challenged:
A quick synopsis of current listing inventory levels
compared to 2014 sales suggests that we are overweight on listings $500K+. For example: during 2014 sales of properties
$750K+ accounted for only 3.1% of all residential sales yet currently account
for 7.3% of listing inventory. If one
adds the $500-$700K category, sales above $500K in 2014 totalled 14.7% of all
sales yet current inventory has 21.7% of total listings. So those listing properties above $500K will
want to be very careful with their list pricing, marketing and timing
strategies. We expect to see this category of properties to also take longer to
sell.
Outlook:
We are hoping that there may be some Federal Government
budget thawing and pre-election goodies which would help our market. Some reports suggest that there may be an
uptick in DND personnel moves which is a very important factor in our
spring/summer market here.
Ultra low mortgage rates may also move some buyers off the
sidelines and in to the market.
Market
timing: …don’t miss the spring!
March, April and early May are the peak listing periods to
get properties on the market for spring buyers.
If you have not made your plans, by all means check out our new 3 tiered
commission rate plans* based on service levels which provide 2 broker support
for MLS® listings for 2.99% (basic service) 3.99% (full service) and 4.99% (premium broker service). Our 4.99%
program we believe is unique in that it offers up to $3,000 in
rebates/discounts for pre-listing preparation or staging to
help you get your property in model home condition for listing. All rates include a market standard 2.5% commission
for a buyer representative bringing a buyer.
For more details please call 613-435-4692 or email oasisrealty@rogers.com.
* not intended to solicit those with existing representation
agreements.
Call to
schedule a realistic market evaluation:
We are happy to provide a no cost no obligation market
evaluation of your home focused on what you may realistically be able to expect
from this challenging market. We will
tell you the marketing advantages of your property but we will also tell you
the limitations and what we think you need to do to get the house sold in
support of your housing objectives.
Gord McCormick
Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or cell/text 613-371-9691
www.oasisrealtyottawa.com
oasisrealty@rogers.com
@oasisrealtyOTT
Experienced,
professional brokers with lower costs for sellers