Ottawa real estate had record unit sales in May and the combination of all indicators suggests we are either in a seller’s market or very much on the verge of one.
Sales and prices were up and new listings and overall listing inventory were down thus making for a good month for sellers and listing agents but not so much fun for buyers.
May is typically our busiest sales month (followed by June and then April) as our market is boosted by families looking to move before school starts in September and also a strong transition of government staff (primarily military and RCMP) moving to and from our area.
Unit sales strong:
Residential unit sales up 12.4% for the month, condos up 44.6%
The number of residential units sold in May was 1856 vs 1612 a year ago.
Condo unit sales were 444 vs 307 in May 2016
On a year to date basis through May, residential sales are up 12.4% and condo sales up 27.1%.
Average prices increasing nicely:
The average price of a residential property sold in May was $436,625 and increase of 7.4%.
The average condo sold for $270,993 in May an increase of 2.3%.
Year to date increases for residential properties sold is trending up 6.7% and for condos 4.9%. This is our best average price growth in 5 or 6 years.
Listing inventory continues to be the key indicator to watch!
New listings continued to slow with condo listings lower than May 2016 by 6.3% and the # of new condo listings down by 13.2%.
Overall, the number of new listings is 10% lower this year to date.
End May listing inventory signals more demand in coming months!
The combination of strong unit sales increases and a lower number of new listings leaves us at the end of May with 25.3% fewer available listings in the residential market and 22% fewer condos that in 2016.
This means more competition for available listings in general and thus favours sellers. On an area by area basis this may vary but it does jibe with what we are seeing daily in the market.
New listings to sales ratio indicate seller’s market conditions during May:
The number of residential sales (1,856) to new listings (2607) yields a ratio of 70.2% and this is almost Toronto high! (a ratio above 60% is said to reflect seller’s market conditions, with 40-60% representing a balanced market and less than 40% a buyer’s market.) On a year to date basis the ratio is 58.8%, just short of a seller’s market
Condo unit sales for May (444) vs new listings (734) yield a ratio of 60.4%, also just in to seller’s market territory. On a year to date basis the condo ratio is 46.8% which suggests a more balanced market.
What can we expect in the long, hot summer?
We are certainly seeing more multiple offers and offers days being established by sellers and their listing agents, especially in key geographic areas and price points. Sellers should discuss their pricing and marketing strategy with their listing salesperson to determine the best course of action for their circumstances.
Buyers want to be on top of new listings (and price changes) and not wait for an Open House to go and see a property that may interest them.
Both sellers and buyers will also want to determine their own position on how they wish to participate in a multiple offer situation, should one materialize.
Why pay 5% commission to sell in a “hot” market?
Buyers and sellers need their salesperson or brokers’ advice just as much in a hot market as in a slower one….but do you really need to pay 5% commission on the selling side?
If you don’t think so, give us a call and we can explain our options that will *save you 26% to 50% of the selling fees on your sale. 613-435-4692
*not intended to solicit those with existing listings. Savings based on our range of listing commissions vs typical 5%.
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
An experienced, effective and inexpensive residential brokerage