As the weather heats up the real estate market has cooled slightly. This is a reflection of the mortgage rule changes that occurred in late 2012 and were designed to have just this impact on the real estate market. It's also the impact of the uncertainty in the job market, specifically the Federal Government in Ottawa.
But it's by no means doom and gloom. The unit sales for all property classes is down 4.6% compared to May 2012 but with 1804 units sold is above the 5 year average of 1802. Nobody has been complaining about the down real estate market for the past 5 years and there is no reason to start now. To see the full Ottawa Real Estate Board Market Report for May 2013 click here.
Condominium sales are down 9.9% and prices are down 2.3% but this is most likely a reflection of intense competition from new condo developments many of which don't get sold through the MLS system. Older condo buildings are having to compete with more modern buildings offering higher ceilings, in unit laundry, modern facilities and modern features. It makes it more challenging to sell the older units but people who want space for a more reasonable price will be buying in the older buildings.
The average sale price for residential units excluding condos is up 2.3% over May 2012, again emphasizing that the real estate market is ok. With interest rates remaining low, many Canadians stating that they plan to buy and a good inventory of homes to choose from, I expect the market to remain balanced but for sellers this will mean that homes sales will take a little longer to happen and you must price your home competitively, stage it well and be prepared to negotiate when a buyer steps up or your home may sit on the market.
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