Ottawa real estate showed a slight unit sales increase in the month of February 2019 of 2.8%, just a handful of sales ahead of last year. Continuing listing inventory shortages pushed prices up but curtailed unit sales increases.
Here is a snapshot of key indicators for the month’s sales: Unit sales:
Residential sales were up 3.8% during the month and condo sales were flat compared to last year. Average prices:
The average residential sale was up 8.6% to $466,540 and the average condo sale was up 5.6% to $288,354 Listing inventory: Residential listing inventory is 20.1% below last year and condo listing inventory is 31% lower than last year. New listings: Further compounding the listing inventory situation is the fact that new listings during the month were also on the negative side, with 6.5% fewer new listings during the month and 21.9% fewer condos.
If these trends continue, we should see continuing upward price pressure and a continuation of the sellers’ market conditions.
For your neighbourhood specific details, contact your Realtor or the undersigned.
Will mortgage rates continue to rise?
Rates have been creeping up but it is hard to say what we may see in 2019. Another .25% probably wouldn’t hurt the real estate market too much but anything beyond that will certainly have an impact, when one also considers the mortgage stress test provisions.
Will listing inventory stabilize/improve?
We have seen very low listing inventory conditions throughout 2018, making life difficult for buyers and their agents. Will this continue in 2019? The number of new listings has flattening out somewhat in latter 2018 so we are not falling further behind on listing inventory but this will continue to be a critical factor.
Builders have had very strong sales in both 2017 and 2018, so it is possible there may be a backlog of resale properties to hit the market, once these new home (or condo) buyers are getting closer to taking possession of their new properties.
At what pace will prices grow in 2019? If there was an anomaly in our market in 2018 it is the fact that resale prices did not increase as much as they might have, given the low listing inventory and supply/demand imbalance in favour of sellers. The average residential selling price was up 5.1% to $446,415 through the end of November and the average condo sold for $278,330, up 2.8% vs last year. Nice improvement but not the runaway sellers’ market some of the headlines would suggest has been occurring. It is possible that the balance of sale % shifted towards lower price condos and townhomes which could have the effect of buffering overall % selling price increases.
What government action could impact our market this year?
Potentially long list here, with a Federal Government election pending, a new Provincial government in Toronto and a new city council in Ottawa.
Ottawa employment and general economic activity should be pretty stable with the current government or a minority government post-election but all bets are off, if a fiscally conservative government gets elected on a promise to balance the Federal books. This would result in Ottawa government and private sector job losses and would chill the housing market.
Our biggest concern is what the Provincial government may do in terms of downloading, should Premier Ford decide it necessary to try and get the disastrous Provincial books in order. Delays or cancellations to funding big projects like LRT2 or other infrastructure projects (Civic Hospital, Library) all could take a bite from the local economy.
Is MLTT coming this year? We are fully expecting that at some time in the next couple of years, the City will join Toronto in the implementation of the Municipal Land Transfer Tax (MLTT), as this would add up to $150 million annually to the city tax revenues, without impacting most taxpayers. Since only 5 or 6% of homeowners buy or sell each year, it is almost the perfect tax, since those not concerned with buying or selling are less likely to get hot and bothered over this type of tax. The impact of an MLTT would be pretty significant for a buyer: on an average residential property this would mean an additional Land Transfer tax (on top of the existing Provincial amount) which would total $10,950 for the buyer of the average $450,000 property and $18,950 for the buyer of a $650,000.
This tax has been in place in Toronto for almost a decade now, without destroying the Toronto real estate market and generating something like $800M a year in tax revenue, so don’t be surprised if this is coming our way! When you think about it, the revenue from such a tax would almost be enough to be able to offer free transit or at the very least, half price transit which would help boost declining ridership.
Will LRT be a success? The long awaited LRT will be pretty exciting but also nerve wracking in 2019. How well the system launches and is accepted by commuters will have an impact on the “transit oriented development” meme and developer plans/timing to populate high density condos and rentals along the transit route. If we don’t see ridership meet projections then many things could change or be delayed.
What now for Lebreton? The recent gyrations at Lebreton Flats and the poor sales to date at Zibi, may simply be indicative of the market overall appetite for high end urban condos but there is no question that the recent “failure to launch” will slow sales of any project in that immediate area. After all: who wants to plunk down a pile of dough for a condo that may get built in 3 or 4 years, next to you-don’t-know-what? We think most consumers (and their realtors) will be hesitant to jump headlong in to pre-construction purchases, given the Lebreton saga and current status. Unfortunately, we can’t expect the Feds to be too engaged on this file going in to an election, especially with a new Chairman at the helm of the NCC.
Bottom line: Short of any major worldwide economic event, we see another pretty good year ahead for Ottawa real estate, despite the “cooling” reports you may be seeing throughout the national media. Real estate is very local and all indicators look pretty good as we open the doors for 2019. Our view is that those considering plans will want to move on those sooner rather than later, as prices continue to rise. It is never too early to start both buying and selling plans and getting your Realtor team together, is always a good start!
Ottawa real estate normally pretty much hibernates from late November to late February but this may not be the case this year. Buyers and sellers will want to consider the following factors and consider whether they wish to move up their buying or selling plans accordingly:
Listing inventory at decade lows: The level of available properties to purchase continues to be extremely low and the number of new listings coming on the market, shows no signs of reversing this trend. Supply/demand alone would suggest that this has to put more upward pressure on selling prices.
Residential listings are currently 17.5% lower than last year, 35.5% lower than 2016 and 48.8% lower than 2015.
Condo listings are 34.5% lower than 2017, 45.5% lower than 2016 and 55.8% lower than 2015.
Even rental listings are down quite significantly, 31.6% lower than last for MLS rental listings.
Beat the price increase! Your next house is going up $2-3K a month!
With residential prices on the way up (+5.7% through Oct 2018) that dream house is getting more expensive day-by-day. For example: a $500,000 property today may well be $525,000 or even $530,000 by the end of 2019 peak selling season. That’s an increase of $2,000 to $2,500 per month and with mortgage rates also headed north, the cost of servicing a mortgage is also increasing. The mortgage “stress test” which is typically 2% above the mortgage rate being offered is also moving upwards as rates rise thus making approvals more challenging for some buyers.
New construction price and availability: Builders are also facing limited availability, after two record years of sales and also are facing some labour shortages and price pressure. All of these factors will also continue to push up the price of new construction.
Mortgage rates: Rates are pretty well guaranteed to rise a half point in the next 6 to 12 months, with an outside chance of going up a full % point. This adds challenge to the approval process (mortgage stress test) and monthly cost for buyers and homeowners, so buying now and locking in at a lower rate will have some advantages. *new construction buyers will have to make sure they get a guaranteed rate from their mortgage broker or bank to cover them for the longer new build timelines.
Local economy is strong: The local economy seems pretty solid regarding employment and there appears to be no signs of the Federal Government doing any significant belt tightening in advance of next year’s election. (Though one never knows?) So our market should continue its current moderate upward path in the immediate future.
Provincial and municipal budgets:
A “new” city council in Ottawa is in place and we also have a relatively new Provincial government in Toronto. The Provinces’ fiscal challenges are well noted and there are also signs that the City of Ottawa has its own issues. Here are a few things that could happen that might add cost for buyers and sellers:
If Ottawa council feels really in a budget pinch, is it possible that a Municipal Land Transfer Tax (MLTT) could be implemented here? This would add $5,000-$10,000 to the typical residential purchase transaction cost here and would cause a bubble and price run up in advance of implementation. To put this in perspective: the total land transfer tax on a $500K home would jump to almost $13,000 and $21,000 for a $700,000 home purchase.
What is the Provincial government going to do to fix their huge fiscal problem? Could they raise the level of the Provincial Land Transfer Tax? Add some other “luxury” or other tax on housing?
Could Ottawa raise development charges which once again adds to the cost of new construction homes and condos?
What effect will “inclusionary zoning” have on costs of new construction? This principle requires builders and developers to include provision for lower cost housing in their new projects but will certainly affect the cost of new properties, as it becomes more prevalent in the near future.
Do the Feds have any plans in their National Housing plan that might affect buyers, sellers or homeowners?
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
Ottawa listing inventory is a prime indicator of our seller’s market conditions this year. Chart shows the tremendous change in October month end listing inventory over the last 4-5 years. (from a buyers’ market in 2014/15)
Residential listings are currently 17.5% lower than last year, 35.5% lower than 2016 and 48.8% lower than 2015.
Condo listings are 34.5% lower than 2017, 45.5% lower than 2016 and 55.8% lower than 2015.
Why aren’t prices up even more?
Given these figures, one almost wonders why we have not seen even more upwards price pressure, with residential prices up (only) 5.7% in 2018 to $449,005 and condo selling prices overall essentially flat with an average selling price increase of only .6% to $271,350 at the end of October.
On the good news front, new listings appearing on a monthly basis are starting to level off somewhat, so the listing inventory situation does not appear to be getting any worse. Many buyers however, are finding it very difficult to find and secure the property they want. Low listings and quicker selling times have resulted in more multiple offers which typically generate a selling price above the listing price.
Now is great time to be planning a purchase or sale for 2019, as one can only see more scarcity and perhaps even higher prices in 2019.
Ottawa real estate has posted solid results over the last 2 years but is it really as “hot” a market as is often portrayed?
Both buyers and sellers should beware of headlines, myths, legends and Realtor marketing which can tend to obscure reality and create unrealistic expectations.
Let’s start with some facts, based on 3rd quarter 2018 results and see how this jibes (or not) with some market perceptions:
Unit sales year to date:
Residential sales are very flat this year with units sold up only* .3% in the first 9 months of the year. Condo sales meanwhile (though a much smaller #) are up strongly at 15.1%
*There is a school of thought that says the low residential unit sales increase is due to listing inventory limitations and there is some truth in this.
The average price of a residential property sold in Ottawa this year is up nicely by 5.2% to $447,427. The average condo price is up only 2.3% to $278,401.
Good solid numbers but not exactly runaway sellers’ market results, right? So why is it that if asked, many people would say we are in a “crazy” strong market and everything is selling quickly, with multiple offers and over list price sales?
Headlines and social media: Clickbait headlines and search word worthy social media posts and videos tend to be as dramatic as possible, so quite often outlier examples ie one house in Barrhaven sold with “xx offers submitted and sold for xx,xxx over listing” tend to over influence the market reality.
Also, quite often, short term results, such as a single month sales report are taken to represent the overall trend which may or may be correct. Sales or prices for a single month (or even 2) touting a runaway market may not be consistent with longer term results (4 to 6 months or more) and therefore skew buyer and seller thinking.
Realtor Marketing: Realtor marketing is pervasive and hypes their individual results, focusing on the how many they sell and how quickly and for list price or better. Again, giving the impression that everything sells in a just a few days on the market (or even before being on the market!) and creating an impression that this is the market norm. We submit that the overall sales stats refute the common perceptions created by these Realtor marketing posts. One high level Realtor marketer quoted earlier in the year that more than 50% of their listings were selling in multiple offers &/or over list price. While this may have been true for a short period, there is no way this is true over the year to date results. Unfortunately, such marketing claims can mislead consumers. * during that approximate period the Ottawa Board did quote a figure of 20% of properties selling at list price or above for that specific month. Unfortunately, there does not appear to be an easy way to track this statistic, which is totally bizarre in 2018.
Listing inventory continues to be low: Listing inventory continues to run much lower than over the last 5 years (currently residential inventory is 16.8% lower than a year ago and condo inventory is 28.2% lower) These numbers certainly reflect a relatively thin level of supply but if it was truly drastic…wouldn’t the average selling price increases be much higher under typical supply and demand rules?
Builders recording huge sales increases over last 2 years: Part of the growth in the recent market has been a huge uplift in builder and developer sales of new construction housing and condos and only a small portion of these are sold via MLS listings, so this growth is not included in our market statistics. Most of these new construction buyers also have a property to sell and these properties do eventually get to the public market via an MLS listing, so those pending listings arrive in the resale market 90 to 150 days before the new construction property is due for possession.
Grey market for listings:
There has been a long growing trend towards pre-announcement of listings by Realtors both as a marketing tool and an attempt to get a property sold sooner. Everyone has seen the “Coming Soon” or “Exclusive Listing” sign toppers in their neighbourhood and these are examples of what we call the “grey market”. Though an advance notice market may seem like a good idea, we think it takes away from the impetus and proper MLS launch of a listing but if it makes sense to that seller, then of course that is up to them.
Unfortunately, any sales recorded by these “grey market” listings are not captured by MLS and therefore not included in our Ottawa Board statistics, which may distort the overall sales picture. (in fact, it may understate results and average prices)
Summary: Overall, our market is healthy and lower listing inventory still favours sellers-so this fall and winter should be among the best in many, many years. One of the tenets of Ottawa real estate is that it is steady and stable without the large peaks and valleys, experienced in some other markets and we are better off for it.
We are in a relatively strong market but not a runaway seller’s market and we would be happy to provide detailed research for buyers and sellers appropriate to their individual situation.
Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692 or mobile 613-371-9691
Listings (or lack thereof!) continue to be the dominant story in Ottawa real estate based on 3rd quarter results through the end of September.
Almost 3,000 fewer listings than at the same point only 2 years ago!
New listings in September are down 10.5% for residential properties and 20.3% for condos vs last year and 22.6% and 26.8% vs 2015.
Total listing inventory at month end is down this year 20.1% for residential listings and 24.1% for condos. Compared to 2015, listing inventory is down 35% for residential and 33.6% for condos. Combined this means the current market has a 2,922 fewer properties available for sale at the end of September than the same point in 2015.
Sales up, inventory down, scarcity looms
With total sales demand up 12.1% vs 2015 for residential and 24.6% for condos, it is easy to see how we are seeing average prices rise and more multiple offers.
Residential sales: price growth fuelled by demand
Unit sales were actually down 1.8% in September but average selling price was up 8.2% to $416,464. On a year to date basis, residential unit sales are up 6.6% and the average selling price is up 7.2% to $425,139.
Condo market continues to show strength:
2017 has been one of the best condo markets in many years with unit sales thus far up 23.5% and the average selling price up 4.6% at $272,220.
Sellers benefit in this market but of course, those who are also buying face a challenge on that end. One of the basic facts of real estate is that those who own a home are stuck both buying and selling in the same market conditions, so while one may gain on one side, they suffer on the other.
Buyers face more multiple offers, a very fast moving market on new listings and limited decision making time.
Builders have had a record year from anecdotal reports and we can certainly confirm that builder prices have been increasing and buyer incentives decreasing in the face of strong results and limited listing inventory in new construction also. Buyers are encouraged to keep an eye on new lot or phase releases or in demand inventory homes. Also take your Realtor with you to the sales centre and consider asking for a “hold” or “reservation” for a short time from the builder, if possible.(though builders may also be tightening up on their willingness to accept such good “faith” agreements)
Bottom line and what to expect:
Though mortgage rates are creeping up with the Bank of Canada recent rate changes and there are continuing steps to tighten mortgage qualifications, our market appears pretty solid and poised for more growth.
Investors are still trying to figure out how new rental rules from the provincial government may affect them, so we could see some slackening in demand from this sector as a result.
As long as the federal government does radically alter their headcount and spending plans going in to the latter half of their mandate, our local economy should continue to be fairly buoyant and allow us to continue with the positive real estate trend lines which have been strengthening for the last 18 months.
This could be the best fall and winter in the last decade to be listing a property, given all the foregoing, so sellers should be reasonably confident they can find a buyer even in our historically seasonal hibernation between mid-November and mid-February.
Buyers should keep a close eye on the market as there may be some off season listing gems hit the market from sellers who have been awaiting a new build completion and have to list in the off season to accommodate their move in plans.
We recently ran in to an issue with a condo and a fairly cranky Property Manager.(at least initially) We had agreed with the seller that based on the location of the townhouse condo, it made good marketing sense to have 2 sets of “For Sale” signs; one right in front of the unit itself and the other at the entrance off the main road.
Immediate removal and repair of “damage”!
Little did we know that the condo had restrictions on where signage could be placed and both of our signs were inappropriate and required immediate removal or repositioning.
The condo limits the location of real estate signage to one small grassy area at the far end of the development from our listed property, so with the clients help we removed the incorrect signage and reinstalled the other one appropriately.
Why do condos have such rules?
The principal reason is to facilitate grass cutting, snow removal and other maintenance and perhaps cluttering up the common areas is an issue, too. (we would probably ban signage altogether but that is a topic for another day)
The Property Manager was 100% correct in saying that we either should have known or should have checked prior to installing our signs, so this is a good tip for both sellers and realtors when listing condos. Though not justification, in our defence: the seller was a new owner who had just purchased the property for renovation and resale purposes and we had not listed a property in this complex for some time, if ever.
Also, we had seen at least one other sign in place in front of another unit listed when our client originally purchased the property, so perhaps that influenced our thinking.
Other condo restrictions:
Placement and duration of lockboxes at condo apartment complexes is an ongoing issue for property managers and realtors alike. Take a look around at the proliferation of lockboxes on railings near condo entrances in larger complexes and just think: what could go wrong?
there may be parking limitations or restrictions that make it difficult for realtor showings and open houses
security may also play a role in limiting access, particularly for open houses, as some condos require visitors to be escorted, once inside the building.
Open Houses and signage:
there may be specific regulations aimed at Open Houses and open house signage which owners and realtors should know and support.
In building marketing or posting of flyers or promotional material:
I have seen marketing information posted on condo bulletin boards and also seen flyers dropped outside unit doors. Most condos will have some kind of guidelines for such practices.
Every condo is different:
Also remember that every condo is different and may have varying rules and restrictions, depending on ownership and Board wishes.
A word about property and building managers:
Property managers and in-building managers are very important resources for condo owners and realtors alike. They can be invaluable assets and sources of information and provide critical services, so it is always best to have a good relationship with them. So do everyone a favour and make sure to check out all condo rules, policies and procedures to facilitate the listing, marketing and sale of your condo property.
We are having the best year since 2010 in Ottawa real estate, with unit sales and prices up nicely and listing inventories dropping significantly from some historical highs in 2015.
Overall unit sales are up 10.8% and average prices are up 7.2% to $398,872 across the Ottawa Real Estate Board (OREB)
Builders are reporting an extraordinarily strong year with one report indicating a 44% hike in unit starts and one builder reporting that sales have doubled in the first half of the year!
So how is Stittsville doing? Stittsville market is keeping pace with overall growth with the exception of areas north of Hazeldean Rd which is fairly flat in both sales growth and price increases.
Desperate need of more listing inventory north of Hazeldean Rd!
MLS® zone 8211
Unit sales are down 7.6% compared to midway in 2016 and average prices are pretty flat with an increase of .5% to $393,237.
Very limited listing inventory may be the cause of relatively fewer sales, for example, this area has only 22 total listings at time of writing and that is barely one month’s worth of sales! So this is a great time to be selling in Stittsville North (Fairwinds, Jackson Trails, Bryanston Gate, Timbermere, Poole Creek) especially.
One would have thought that this should push average prices higher but is not the case thus far. The other two Stittsville zones below have a more reasonable 3 months’ worth of listing inventory, although still much lower than in previous years.
Central Stittsville: (MLS® zone 8202 between Hazeldean Rd. and Abbott St.)
Unit sales are up 25.6% and average prices up 8.2% to $468,745. 55 residential properties currently listed.
South Stittsville: (MLS® zone 8203)
This area is also seeing strong results with unit sales up 21.7% and the average price up 5.8% to $512,666. 50 residential properties currently listed.
Builder competition: With so much new construction in Stittsville and Kanata, the resale market is always competing with builders. This can have an effect on those selling, particularly if the home is less than 5 years old and the builder still offers that particular model for sale.
Builders have been raising prices this year, along with the market overall.
Construction disruption: Some streets/neighbourhoods may have resale affected by new construction in adjoining parcels of land, particularly where that development may change the ambience or traffic patterns.
The military invasion continues! With the migration of DND HQ to DND Carling Campus at Moodie Dr., Stittsville and Kanata continue to be very popular for military families.
If you would like more information on this or any other neighbourhood and are not currently working with another Realtor by all means give us a call 613-435-4692 or check us out at our online co-ordinates below.
Our Ottawa market is showing some strong signals that we may be seeing a return of seller’s market conditions, with stronger demand, rising prices and the increase in the number of multiple offer situations. This can be a stressful experience for all parties, particularly buyers who have not experienced the process.
We recently competed in a multiple offer (representing a buyer) on a detached single home in the south end which attracted 5 offers within 48 hours of being listed on MLS®. We were not successful with our offer and our buyers were very disappointed but we gave it our best shot in the fast paced process surrounding these types of situations.
Here are some of the key challenges in the process:
Compressed timelines: The listing was just posted on MLS® later on Monday. We alerted our buyers to the new listing that evening and requested a showing directly via the listing agent that night. We actually viewed the property twice on Tuesday, once with one of our buyers and the 2nd time with both buyers. (one of our buyers was actually able to take the day off work to get in to see property as early as possible)
We submitted an offer on Tuesday evening that was slightly over asking price, as we expected that demand would be reasonably strong given the amount of showing activity on the listing. We were aware of the fact that another offer was pending and it had been submitted just prior to our own offer.
Our buyers revised their offer price upwards, based on the 2nd offer.
The listing salesperson had now established an offer presentation time for Wednesday later afternoon. By early-mid afternoon Wednesday, we were aware that there were now a total of 4 offers registered on the property. (there ultimately ended up being 5 offers submitted)
Our buyers revised their offer price upwards a 2nd time to their absolute maximum and we submitted revised documentation to the listing sales person.
Buyer roller coaster: Buyers are caught on a roller coaster of emotions: from the elation of seeing a property they both really want in their price range and area, to happily submitting an offer which is over the listing price and hoping there are not too many offers, to frustration from waiting around without any control of the situation, to stressing about how much one should offer and avoiding temptation to overpay or remove some important condition from the offer which may help “win” the property bid but prove costly later, to the anticipation of waiting and hoping your offer will make it to the top of the pile, to the disappointment that comes from finding out that it was a good offer but not quite good enough.
Sellers are happier but not stress free: Sellers are definitely the beneficiaries of the best possible market value in these scenarios but they are certainly not stress free. This young family was pretty much shut out of their home for the better part of 2 days while buyers and their agents toured the property.
These sellers also have a home they are buying, so until their own property sells and firms up, they are not 100% sure of securing their own dream home. Even if it looks pretty good right now, it is still not over until the final paperwork is done with any buyer conditions satisfied.
Buyer representatives have a lot of conflicting pressures: All buyer representatives want the right property for their buyers and at the right price. While one-on-one negotiations with a listing agent and seller have one set of challenges and variables, multiple offer situations are completely different and the buyer representative has far less control or influence over the outcome.
Price, closing date and conditions are the critical factors and we want our buyers to win but not pay too much or sacrifice important conditions. i.e. like foregoing a home inspection or not including a financing condition.
Add to this the uncertainty of knowing what the “winning” price might be and how to properly advise buyers is a challenging task.
No “cake-walk” for the listing salesperson, either: The listing sales person has their own set of pressures in professionally representing the seller, co-ordinating access for showings, communicating on a timely basis with all interested parties and running a well-organized and credible multi offer submission, advising sellers on bid selection, negotiations and debriefing all who have submitted offers. This is a pressure packed process for them as well. In this case, we had a very professional listing salesperson who very ably managed all of these from our vantage point.
Everyone’s life is “on hold”: All parties to these situations are pretty much “on call” as the dynamics of these situations unfold and the process lurches towards a conclusion. Don’t miss out on a phone call, text or email-as you may lose out on timely information or ability to act upon that information. When the ultimate prize is so important, everything is circumspect and under a microscope. Did we do everything we could? Was there more information we should have had? Should we have been more aggressive? How much risk should we take?
This is definitely starting to look like a “you snooze…you lose” kind of market: What about the buyer representative who missed the listing or the buyer who wasn’t quick enough to even get in to see it? What about the buyer representative who wasn’t available to get their buyers in to see the property? What about the buyer who said: “let’s wait for an Open House”?
Bottom Line: It is always disappointing to “lose” but our buyers did everything they possibly could and are moving on to the next one. Our job is to find them an even better one than the one that got away and it’ll happen for them!
Though January is typically the lowest sales month of the year, (along with December) there are some very positive trends in the current market.
Strong residential sales in January 2017:
Unit sales have been trending up steadily since April 2016 and January continued that trend. Unit residential sales were up a solid 16.6% for the month and overall residential and condo sales were 8.6% higher than the 5 year average for January. Condo unit sales were flat in January but did sell at a higher price than a year earlier.
Listing inventory trending down:
This is a key category and indicator of overall market activity. We experienced several years (2013-2015) of increasing inventory levels which led to a supply/demand imbalance favouring buyers. Starting in spring 2016 this indicator started moving in the opposite direction and moved in to a balanced position during 2016. See chart: https://public.chartblocks.com/c/5895b4b79973d295631e48dc via @chartblocks
January 2015 listing inventory is 15.2% lower for residential listings and 10.7% lower for the number of condo listings, compared to a year ago.
New listings in January were 11% lower than a year ago and condo listings for the month 4.6% lower.
Balanced market or seller’s market?
If we continue the combination of higher unit sales with lower numbers of new listings and total listing inventory, then we may see more pressure on buyers and higher prices and move more towards a seller’s market. This is what can occur when demand outstrips supply and can be characterized by shorter selling times, higher prices and the existence of more multiple offers on listings. We have not had sellers market conditions (except perhaps at a neighbourhood level) for 4 or 5 years now, here in Ottawa.
We have also had reports of strong sales from builders on new construction and inventory homes.
Overall average prices are not leaping forward, as has been the case for the last number of years but the trend suggests this could change if supply limitations drive prices up.
This is a very important time of year for both buyers and sellers, as market activity grows on a daily and weekly basis from now through peak season in May and June, so it is a good idea to get one’s plans in place and existing properties ready to sell.
These overall numbers may not apply to all neighbourhoods, so if you would like to get an analysis done for your own property or area, feel free to give us a call or call your Realtor. 613-435-4692
Gord McCormick, Broker of Record
Dawn Davey, Broker Oasis Realty Brokerage
613-435-4692 or mobile 613-371-9691 email@example.com oasisrealtyottawa.com
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