The world of real estate is filled with data. This data, and the statistical analysis done on it, can be incredibly valuable to you as a buyer or seller.
Not a fan of numbers? Not a problem! That’s where working with a knowledgeable realtor can help. They can help to not only provide you with the data but also help to interpret it and apply it in a way that best serves you. We’re breaking down some key statistics that can be super helpful in your buying or selling process.
Keeping a pulse on your neighbourhood stats
There are many wonderful neighbourhoods throughout the City of Ottawa to call home and keeping an eye on the real estate market in your specific neighbourhood (or a neighbourhood you’re looking to move into) can be beneficial. Neighbourhood stats help you better understand the landscape at a very localized level which is valuable intel for your pricing strategy, offer strategy, negotiations and decision making.
The Ottawa Real Estate Board divides the city into communities. These communities are made up of various neighbourhoods and sub-neighbourhoods that correspond to MLS districts.
Each month, the Ottawa Real Estate Board reports on the overall Ottawa market as a whole (compared to the previous month) as well as specific stats for communities across the city. These stats focus on two key pieces of data: units sold and average sale price.
Units Sold
Seeing the number of units sold in your community and comparing this to past months and the previous year provides an indication of the volume of transactions. This is helpful because a continuous increase in the number of units sold suggests more inventory which is a good sign for buyers.
If the number of units sold is trending downwards, this provides an indication of fewer transactions and less inventory which is favourable for sellers.
Average Sale Price
Looking at the average sale price can help to assess property value in a specific community and how that community compares in relation to the city as a whole. If the average sale price is increasing, especially compared to all of Ottawa, it indicates that the area is a desirable one.
A decreasing average sale price hints that the properties in the area are selling for less, which can be beneficial if you’re looking for a future investment. This is appealing because properties are more affordable to buy, and you’ll be able to take advantage of the appreciation in value.
Analyzing Historical Sales Data
Not only will working with a realtor help to interpret the stats in your area, but they’ll also have access to sales history. For buyers, you’ll want to pay close attention to any previous sales history on the property you’re looking to purchase, and both buyers and sellers will want to know about the sales history for comparables in the area. Comparables are properties that you identify as similar to yours, which your realtor can help to identify, that act as a helpful benchmark.
List Price and Sale Price
Knowing the list price and sale price of comparables is incredibly helpful information. For example, learning the most recent list price and sale price of a similar style house that sold one street over from yours can help you ballpark what you might expect to sell for. Alternatively, if you’re looking to buy and there has only been one property listed in the whole area in the last six months, and it sold for well over asking, will give you a heads up that there will likely be some competition.
Days on Market
Another interesting but also helpful piece of data is days on market. Are properties in the area moving quickly? Has a particular property been sitting on the market for a while? If the seller isn’t getting their price, it creates an opportunity for more negotiation. Alternatively, if properties in the area are going quickly it’s a good indication that you’ll need to come in with a strong, compelling offer. Days on market can help in your pricing or offer strategy. If the offer date has come and gone and the seller has received no offers, it’s also a great opportunity to put in an offer on a home that you’ve been watching and get a better price.
As a client of Melanie Wright Real Estate, you’ll regularly receive helpful stats for your specific community and style of home. When it’s time to buy or sell, Melanie can provide you with the historical data and a strategy to leverage the data that benefits you best.
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