DURHAM REGION REAL ESTATE MONTHLY HOUSING REPORT
Summarized by Jacob Asparian, Broker
Hey what's going on everybody! Welcome back to our monthly real estate market update. Now that the summer is over, kids are back to school everyone starts focusing in on their real estate needs. If theyre thinking of making a move before the winter/new year, now is the time to do it.
My name is Jacob Asparian and I run a real estate team in Durham Region and today we are going to review the real estate market update numbers for August 2019. I put this together for everyone out there, whether youre thinking to buy, thinking to sell, or youre just interested to know whats happening in the market, my team and i are always here to help or answer any questions you have.
To try and get a sense of what is happening in the market, we are going to look at the total number of listings, sales, and average market price in Durham Region.We will also do a bit of a deeper dive by looking at current inventory benchmarks and then a few key takeaways from the current market.
The basics! In every market, the 3 most important numbers we look at are listings, sales and average sales price
We saw a total of 1542 new listings come to the market in Durham Region this August, which was an increase of 5.18% more than the 1466 that came to market last August.
Now that is inline with the 5% increase when you look at past year to date numbers compared to this year to date. Overall, we are generally seeing more listings coming to the market than a year ago.
We had 1046 homes sell in Durham Region in August and that is a significant increase of over 24% on the 843 that were sold in August 2018
This is an 18% increase in sales when you look at the numbers on a year over year basis.
AVERAGE SALES PRICE
So what does this mean for sales prices? The average sale price in Durham Region in August 2019 was $614,362.
This is an increase of 4% from the 2018 average of $590,706. This includes a bump of $10,000 from the average sale price that we had just last month but we are still just shy of the highest monhtly sale price on the year. These types of fluctuations can be expected due to seasonality and if you look at average prices over the last 12 months they have stayed quite stable.
Now the total months of inventory in Durham Region is currently at 1.8 which means we are still in a fairly tight sellers market. This is even less inventory than what we had a year ago when we were sitting at 2.4 months of inventory. What does months of inventory means? If we stopped listing homes and kept selling at the current pace, it is how long the inventory would last for.
Anything under 4 months of inventory is considered a sellers market while anything over 6 is a buyers market and everything in the middle is balanced.
Days on market have stayed fairly consistent at just over 4 weeks.
The average sale price to list price ratio was 98% and SNLR (sales to new listing ratio) is 67.8.0%. This means that 68 out of every 100 listings actually sells (which also means 32 listings are NOT selling!)
An SNLR between 40-60% is considered a balanced market with 50 being perfectly balanced. Over 60 is considered a sellers market and under 40 is a buyers. Technically we are in a tight sellers real estate market again in Durham Region.
My main takeaways from August:
Will we hold above $600,000? This was the first time since 2017 that we have maintained an average sale price of $600,000 for 6 months in a row. The last time that happened, the following month property values began its 3 month plummet of 20%
6 consecutive months we have had more listings come to market than the same period a year ago. Seller confidence has returned
5 months in a row of over 1000 sales a month, first time since 2017!
So what does that mean? Is this just a false rebound and are we going to see another correction in property values? Or is the bottom behind us and are we going to see fairly consistent growth moving forward? No one knows for sure. There are so many variables out of our control that can affect our market that we really dont know whats going to happen in 30 days ,let alone 6-12 months.
However, in my opinion,I think we should be maintaining the current trajectory of the market. Property prices should see a steady increase over the coming months in Durham Region. Total sales should top 1000 in September. Buyer and seller confidence has come back in full force.
Having said that, this update is for all of Durham region and every single city, neighbourhood and property type is going to be affected differently. Just ask a 4 bedroom homeowner in Bowmanville or a 3 bedroom bungalow homeowner in Oshawa, and they would tell you that we're actually in a buyer's market as there's quite a bit of inventory than buyers for this market segment.
Every single city and even the neighborhoods within those cities, are going to have varying numbers. If you would like a more specific market update for your city, we have an online mailing list where we will send you your cities breakdown so you can stay in the know!
As always, please keep in mind that this is just a general overview. If you are ever curious to know what your home is worth in the current real estate market, please never hesitate to reach out. We offer no cost, no obligation market evaluations for all of you out there if you are thinking of selling or want a second opinion. If you don’t necessarily want to meet with an agent just yet, no problem! Visit the link and we will send you a free online market evaluation. There is no cost or obligation for any of this.
If you enjoyed this please like and share with anyone else you think would enjoy this and be sure to like/subscribe to be kept up to date for all upcoming vlogs and blogs. Thank you so much for reading and please never hesitate to let me know if you have any questions. Until next time, have a good one!