Is fall a good time to buy or sell Ottawa real estate?

Our peak real estate season is fading with the last weeks of summer but what is the outlook for those looking to buy or sell in the fall market?

Business steady if unspectacular in Sept and Oct:

As one can see from the table below, September and October continue to provide reasonable sales activity, although unit sales are off 30-40% compared to the peak sales months of April through July.

Short “runway” for fall sales:

Sellers should be aware of sales activity levels and competition for their listing, as the steady fall sales level diminishes considerably after the end of October and we hit the winter doldrum months (Nov-Feb) which is our weakest period for real estate in Ottawa. Sales drop off another 20-40% during the winter months.

Sellers will also want to consider the average days-on-market (time to sell) in planning their listing and sale.  Current average year-to-date is 47 days for residential properties and 59 days for condos.

Listing inventory continues at elevated levels:

Lots of inventory out there overall and generally the market is overbalanced in the higher price ranges ($500K+) 81% of all residential sales this year have sold at $500,000 or less and 95.7% below $750,000. Competitive listings and other market factors are critical areas for a seller to review regularly with their Realtor. 

Tough seller questions:
do I drop my price? should I do some reno's on my existing property to enhance marketability? do I pull my listing off the market and bring it out at a later date? do I try another form of marketing altogether?  What are my overall objectives and how best can I optimize or mitigate these objectives, given the current market situation? Will the market be better or worse down-the-road? What is the opportunity cost of not selling now?

How are buyer prospects this fall?

Buyers who do not have a property to sell are certainly in a good position this year, given the excess listing inventory, as some sellers may have to adjust their price expectations to get a deal done in view of both resale and builder competition.  While new listing activity diminishes along with sales activity, there is a very good chance that some price action might occur on a currently listed property that will make it a more reasonable prospect for a buyer.  Buyers will want to watch pricing closely and be sure to have an auto notification set up with their Realtor to ensure they see list price changes the same day as the Realtors and before they hit the public MLS® sites, as these properties may sell quickly, once a price change has been completed.

See table below which shows unit sales history by month which has been pretty similar over the last 4 years.

If you are not already working with another Realtor, feel free to give us a call and plan your fall or spring 2016 sale!  Also get to know us by checking us our at some of our online sites or accounts below.

Gord McCormick, Broker of Record

Dawn Davey, Broker

Oasis Realty Brokerage

613-435-4692  oasisrealty@rogers.com

@oasisrealtyOTT

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