There is good news in the sales numbers for Ottawa’s real estate market for May.
According to a press release posted by the Ottawa Real Estate Board, (www.oreb.ca) the Ottawa market in May of 2015 had the best results for unit sales for the month of May since 2009.
The Board reports that its members sold 1,926 residential properties through the Multiple Listing Service system. That’s up from 1,789 properties in May of 2014, representing an increase of 7.7 per cent. It’s also above the five-year average for May sales, which is 1,812. The numbers for May were up more than 350 over Ottawa’s April sales.
The average sale price for a residential property in May was $411,791. Average sale price for a condo-class property was $266,940.
David Oikle, president of the Ottawa Real Estate Board, says in the release “the Ottawa housing market continued its strong performance in May…. units sold are up 357 since April, increasing in both the residential and condominium property class.”
Looking more closely at the numbers, the sales for May included 1,584 in the residential property class and 342 in the condominium property class. The board says “condominium property class” refers to any property, regardless of style, which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares.”
Looking at how long properties were on the market, the average cumulative days for the units that sold in May was 72 days, compared to 74 in April, the board reported.
“Properties are moving consistently and inventory remains plentiful; labelling the Ottawa market as a buyers’ market and allowing for average sale prices to remain very stable,” David Oikle says.
As I’ve been explaining to my buyer and seller clients for some time now, it’s important to note that Ottawa is currently in a buyers’ market. Whether you’re selling or buying, it’s crucial to understand what that means for you and how it can affect the process.
If you’re a buyer, the unusually large amount of inventory on the market means that the market favours you, and you are in the position to be choosier than you might be in a sellers’ market, and you are in a position to get a good price. If you are selling, it means you are facing a lot of competition from other sellers. It means you have to be realistic in setting an attractive price at the start, and if you want to compete with other sellers, you should ensure that your property is in immaculate, turnkey condition.
Comparing this year’s May sales with the sales for May of 2014, the average sale price of a residential-class property in May was $411,791. That’s an increase of 2.6 per cent over May 2014. The average sale price for a condominium-class property was $266,940. That’s a decrease of 4.9 per cent over the average price in May 2014.
The Board cautions that although average sale price information can be useful in establishing trends over time, it should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold in a given month.
As for which price ranges were the biggest sellers, the Board reports that the largest number of units sold in May were properties in the $300,000 to $400,000 price range. That was followed by properties in the $200,000 to $300,000 range, and then by properties in the $400,000 to $500,000 price range.
If you’re interested in buying or selling, I’ve love to hear from you. You can reach me through my website (www.nancybenson.com) or by calling my office at 613-788-2556.
In my next column, I’ll look more closely at what it means for you to be buying or selling in a buyers’ market, and I’ll offer some helpful tips for strategies for both buyers and sellers.