Ottawa Real Estate Inventory Increases, Market Balances in June 2010

Latest President's Pen Article: Inventory Increases, Market Balances in June

A weekly President’s Pen article appears in some editions of the EMC community newspapers, under the byline of the current Board President. Here is the latest article:

Members of the Ottawa Real Estate Board sold 1,615 residential properties in June through the Board’s Multiple Listing Service® system, compared with 1,897 in June 2009. That represents a decrease of 14.9 per cent. However, the number of sales last month was very close to the five-year average for June, so what this represents is a return to the stable, steady market conditions that Ottawa tends to experience.

Of those sales, 418 were in the condominium property class, while 1,197 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

For the first time in 2010, inventory increased year-over-year in June, by almost six per cent. The Ottawa housing market has begun moving towards balance, away from the seller’s market we have been in for most of the past year. The growth in inventory gives buyers more homes to choose from, and the slightly less frenetic pace of the market offers them a little more time to consider their choice of home. However, it’s by no means a slow market – homes that sold in June spent an average of just 29 days for sale before being snapped up by buyers.

Home sale prices continued to grow at a healthy rate in June. The average sale price of residential properties, including condominiums, sold in June in the Ottawa area was $326,572, an increase of 6.4 per cent over June 2009. The average sale price for a condominium-class property was $256,969, an increase of 8.3 per cent over June 2009. The average sale price of a residential-class property was $350,878, an increase of 7.4 per cent over June 2009. The Board cautions that average sale price information can be useful in establishing trends over time but 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.

Mortgage rates remained very reasonable in June and even decreased near the end of the month, though the Bank of Canada did nudge its overnight rate upwards by one-quarter of one per cent. Most analysts expect that this rate will continue to rise over the course of the next year or so, but that it will happen slowly. For buyers, that means there’s still time to take advantage of the current low rates if you’re hoping to find a new home soon. The Ottawa Real Estate Board has nearly 2,600 members who would love to help you buy or sell a home this summer. Find one today at www.OttawaRealEstate.org.


The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the july issue of the EMC community newspapers. The date of publication appears in the file name of the article.

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Stephen George

Stephen George

REALTOR®
CENTURY 21 Action Power Team Ltd., Brokerage*
Contact Me

Blog Archives

Tags