What to expect from the 91 Most important days in Ottawa real estate...starting today!

Published 01 April 15 02:00 PM | Gord McCormick 

While the weather still has us wondering, there is no doubt that April 1st marks the start of the most important 91 days in the Ottawa real estate year.

3 Biggest Sales Months:

May is the #1 unit sales month of the year, followed closely by June #2 and April #3.  (see monthly breakdown over the last 3 years further down this page)  Some 35-40% of annual sales are transacted during these 3 months.

 

Why spring sales are highest:

Families typically prefer to move in the summer when school is not affected and vacation time may be easier to schedule to facilitate a move. 

Most properties also look their best after things “green up” in early May.

A very important factor elevating spring activity is that this is peak season for government relocations, particularly military personnel. These relocations account for as many as 2,000 housing transactions a year here in Ottawa.  Many military report dates will be in summer, therefore, house hunting trips start in April and really ramp up in May to facilitate summer closings.

 

How it affects sellers:

Sellers have to be prepared to list their property at the most appropriate time and keep abreast of what is going on in a fast moving spring market.  Prices change, new listings come out, and many are sold (200-250 per day on peak selling days at this time of year!)…remember, once these buyers have bought…they’re gone!

Sellers will want to have a good contingency plan, if their property is not selling within 30-40 days at this time of year, as this is absolutely the best time to generate an offer and a sale.  “Waiting for the right buyer” is unlikely to be a good strategy, if the property will not sell when the market is busiest.

 

How it affects buyers:

Buyers, who also have an existing property to sell, definitely want to find their next property when choice is best and also sell their existing property in the most favourable market conditions.

Buyers of new construction homes will want to be cognizant of what their possession date may mean for selling their existing property.  For example, a move in date in February for a new build, means you could be trying to sell in late Fall, when unit sales levels are dropping as fast as the leaves from the trees.  Unit sales decrease every month from the end of May and don’t really start to turn up again until next March.

The market favours buyer’s right now that’s for sure.  This doesn’t mean that buyers should try to negotiate outlandish deals or delay in offering on a property in the hope the price will drop.  With lots of buyers in the market, well priced and presented homes will still sell fast and buyers who are slow to make decisions may lose out on a property they want, so don’t let the deal become more important than the property itself.

 

“Domino’s”, “Daisy Chains” and “Train Wrecks” possible:

With our current buyer’s market conditions we can expect to see a lot of “first refusal” offers/agreements and also listings “subject to a specific property being available”.  These types of conditions are used to help buyers who also have a property to sell from ending up with two properties or no properties.  What can happen is that we have a number of interconnected transactions, each dependent on the others.  If the first “domino” or sale falls apart due to lack of financing, inspection or some other reason, then all connected transactions will be affected.  This is bad enough when it happens during a conditional sales period but is even worse if it happens on or just before closing day.  Lawyers call this situation a “train wreck” and given the current tight credit policies by major banks there is more than a chance of this happening this year than in any time in recent history.

A Realtor has the experience and tools to help minimize the risk of this happening and also for keeping both buyers and sellers on top of daily market conditions affecting their clients buying or selling plans.  For example, we offer our seller clients a “Competition Alert” system that allows them to keep an eye on competitive listings and also analysis on trends in their specific market area.  If you are not already working with another Realtor and would like this type of support for your property listing, by all means give us a call. 613-435-4692

Watch our Facebook page for special offers:  https://www.facebook.com/pages/Oasis-Realty-Brokerage-Ottawa/209265863918  or choose one of our unique tiered listing service plans.  http://www.oasisrealtyottawa.com/Listing_deals/page_2598011.html

 

 

Gord McCormick, Broker of Record

Dawn Davey, Broker

Oasis Realty Brokerage

oasisrealty@rogers.com

www.oasisrealtyottawa.com

@oasisrealtyOTT

 

Full service and lower commissions!

 

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