Let’s take a look at the Inventory of Homes for Sale in Ottawa, with a primer here’s Sean Tassé to explain what we mean by inventory.
At the beginning of January we had 5368 homes and condos for sale in Ottawa.
With 640 sales in December it would take 8 Months and 12 days for them to sell at the same rate. Now December is typically the slowest sales month of the year…
…so if we look at the 13,928 homes sold in 2014, an average of 1160 sales a month would give us an absorption rate of 4 month and 20 days, if no new homes came on the market.
In 2014 29,132 homes and condos were listed for sale,if we assume this year would be similar (it will probably be higher) then we can estimate there will be 34,500 listings for sale this year.
At a rate of 1160/month it would take 2.5 years to sell all those listings.
However we know that some properties hang around the market for months if not years, some times being listed 2 or 3 times and some give up, let’s take that into account.
There were 4,863 on the market to start the year, 29,132 new listings and 5,368 remaining at the end of the year for a net of 29,637 listings offered for sale in 2014.
29,637 listings for sale/13,928 homes and condos sold gives us a sales rate of 46.9%
So of the 34,500 listings I estimate will be available for resale in Ottawa this year we can expect this represents 16,180 saleable properties.
16,180 homes & condos / 1,160 sales a month represents approximately 14 months of inventory throughout 2015, assuming new homes are coming on the market at the same rate as 2014 (i think it will be more.)
Welcome to a buyers market.
In conclusion, “How’s the inventory of real estate in Ottawa these days?
“We got a lot of homes for sale! You want one?”