Re-sale listing inventory is at a 10-year high for this time of year in Ottawa. It’s currently running at 34% higher than the five-year average for residential properties and 58% higher for condos.
Stittsville is no exception. We currently have almost a full year’s estimated sales already listed at $500,000+ with the heaviest listing months to come in April, May and June.
Listing inventory seems to be reasonably balanced for less expensive homes, with only about six months listing inventory in the less than $500,000 category in Stittsville. These sellers will want to consider competitive offerings in neighbouring areas and also the new home competition in the immediate area.
Stittsville is experiencing significant competition for available buyers in a market favouring buyers. While an extended frigid winter did not help, the combination of excess listing inventory and tremendous competition from new home builders have kept the re-sale market in check for the first quarter of the year.
Unit sales down and average prices are flat in all three main Stittsville MLS® zones. Here are the figures for residential housing from January-March, 2015, not including condos.
- 8211 North of Hazeldean Rd.
Home sales to date: 26 this year vs 38 last year -31.6%
Average selling price: $383,092 vs $379,761+.9%
- 8202 Between Hazeldean Rd and Abbott St
Home sales to date 23 vs 26 -11.5%
Average selling price: $391,474 vs $419,900 -6.8%
- 8203 South of Abbott St.
Home sales to date: 27 vs 32 -15.6%
Average selling price: $486,864 vs $483,900 + .9%
(Average selling price can be affected by the mix of housing sold and these are still pretty small sample sizes, so the average selling prices shown cannot necessarily be attributed to the overall market, although this pricing trend is similar to 2014 year end results where average selling prices in all 3 zones dropped: 8211 -3.9%, 8202: -1.4% 8203: -4.8%)
Builders provide tremendous competition
Stittsville and Kanata are overflowing with new builder developments and their bright and shiny sales centres. Business is pretty challenging for builders also right now and they are offering compelling buyer bonuses and incentives. These offerings compete with resale homes and also the builders have the advantage of designer showroom/model homes with the latest features and trends highlighted. Plus these models have never been lived in, unlike resale listings which can often show their age.
(Did you know? A Realtor can help assist buying a new construction home and you can benefit from their expertise at no cost to you.)
First time home buyers or those buying with less than 10% down payment can save an average of $1,500 in increased CMHC mortgage insurance premiums by buying before June 1, ask your Realtor or mortgage broker for details.
May is the #1 sales month of the year, followed closely by June and April. Sellers, especially those priced above $500,000 will want to be very careful with their list pricing strategy and have contingency plans for taking action should their property not sell in the first 30-45 days. Stay in close touch with your Realtor to be on top of daily changes in the fast moving spring market!
For a list of local Realtors see our business directory.
Gord McCormick is the Broker of Record for Oasis Realty Brokerage, a Stittsville based brokerage and is a Senior Member of the Ottawa Real Estate Board.