Kanata starved for resale listing inventory in 2017

 

Ottawa listing inventory down 25% vs last year, 40% vs 2015

The Ottawa resale estate market is getting more than light on inventory after a year and a half of increasing unit sales coupled with a 10%+ decrease in the number of new listings, the overall market is down 25% on the number of available listings compared to a year ago and almost 40% from two years ago.

Even worse in Kanata!
As we approach the end of August, Kanata has barely one month’s worth of listing inventory to feed residential sales and about 3 months of condo sales. Normally, 4-6 months listing inventory is deemed to be a “balanced market”

How is this translating in to sales results?
Sales results have been surprisingly mixed with residential unit sales up 4.1% through July 2017 and condo unit sales up 22.6%. Somewhat surprisingly, residential sales are up an average of only 2.4% to $410,345 and condo sales basically flat (no increase) at $221,839.

Builders winning big this year:
While statistics are not readily available, it seems that new construction is having a runaway success in 2017. The last number we saw reported had builder starts up 44% this year and at least one builder has reported a 100% increase in sales.  Builders are also running out of inventory homes and we have seen numerous price increases and pull back on buyer incentives.

Neighbourhood synopsis:
Beaverbrook:
 (MLS® zone 9001)
Residential unit sales up 26.5 % through July with average selling price up 8.1% to $448,469.  The average house is selling in 1-2 weeks on the market, at slightly above listing prices.

Katimavik: (MLS® zone 9002)
Residential unit sales up 30.6% YTD with the average price up just 2% to $374,869.

Acute residential listing inventory shortage with less than a month of listing inventory currently on hand.
Typical sale is happening in 2-3 weeks on the market and selling at just below listing price.

Glencairn: (MLS® 9003)
Unit sales are up 18.3% with the average selling price up 6.2% to $312,878. Also acute listing inventory situation with less than one month’s anticipated sales available. Typical sale occurs in 2-3 weeks on the market.

Bridlewood: (MLS® 9004)
Residential unit sales up 4.9% and average selling price up 6.7% to $416,272, also experiencing acute listing inventory shortage. Typical sale occurs in 1-2 weeks on the market.

Kanata Lakes: (MLS® 9007)
Residential unit sales down 11.9% YTD with average selling price also slightly down to $487,882 (-1.0%) Listing inventory very limited, less than one month’s expected sales. Typical sale in 1-2 weeks on market and selling almost right at average listing price, if not above.

Morgan’s Grant: (MLS® 9008)
Unit sales down 15.8% with average selling price up 10.8% to $406,293
Very acute listing inventory shortages, further enhanced by limited new midrange construction in the immediate area. Also only 1-2 weeks on market to get a conditional sale.

Emerald Meadows/Trailwest: (MLS® 9010)
Unit sales have surged 29.9% through July 2017 (residential sales) and the average selling price is up 8.1% to $367,751. Very acute listing inventory shortage in this area! Also 1-2 weeks to achieve a conditional sale.

Note: to put the above in to perspective, overall residential unit sales have increased by 9% through July 2017 and the average selling price is up 6.9% to $426,365. Residential listing inventory at the end of August shows slightly more than 4 months of listing inventory available across the Board, with the average selling time in the 30-40 day range.

Summary:
lots of multiple offers and sales above list price which makes things easier for most sellers but then the buying side is a whole lot tougher.  Strong market should continue unless there is a larger than expected backlog created by those who bought new construction for future delivery start to feed their existing homes in to the market in large numbers.

With prices going up…what is your home worth in this market? Given that the price of your next home is probably going up faster than your current one, it might be a good idea to review your plans.

If you are thinking of a housing move, we would be happy to analyze and discuss your specific situation, assuming you are not already working with another Realtor.

We have some of the lowest fully supported MLS® listing rates in the city, especially for those who are both buying and selling with us. Give us a call at 416-435-4692 or check us out online at the co-ordinates below.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
oasisrealty@rogers.com
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