DURHAM REGION MONTHLY HOUSING REPORT
Summarized for all Durham Region residents by Jacob Asparian, Broker
Hey, what is going on everybody! Welcome back to our monthly real estate market update. This month we're going to be reviewing the numbers for Durham Region as of June 2019. As always, please keep in mind that this is just a general overview. Every single city and even the neighborhoods within those cities, are going to have varying numbers. 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. Now having said that, lets jump right into it!
I’d like to mention that DREB (Durham Real Estate Board) focuses on reviewing the numbers of past year-to-date and comparing it to this year to date. So what that means is if we're looking at the numbers for June, they're actually adding everything from January 1st cumulatively until the end of June and comparing it to the same time this year. Now this is a great way to compare year-over-year stats, however, it does not take into consideration the seasonality of our business as well as any drastic monthly changes. That is what I like to focus on when I'm looking at more of a micro, month-to-month basis. I like comparing the month to the same time period a year ago along with other metrics.
My main takeaways for June:
- 3 months straight of double digit M18/M19 growth in sales for Durham Region!
- 2 consecutive months of growth when comparing PYTD/YTD
- 2 consecutive months of average sales price being above $620,000
- Inventory has also been increasing but not able to keep up with the pace of sales
- MOI is still dictates we are in a sellers market
Average sales price has dipped a couple thousand dollars since May be we are still holding steady above the $620,000 mark. This is almost 10% higher than the average sales price of $577,935 that we started the year with.
Now when we take a closer look at activity, things are definitely heating up compared to a year ago. We have seen an increase of almost 23% more listings in Durham Region this June, than the same time period a year ago. When we look on a YTD basis, listings are up 3% in 2019.
Additionally, sales have seen an increase of 19.6% from this time a year ago and when we compare PYTD/YTD we still have a double digit increase of 13%.
The average sale price to list price ratio was 98% and SNLR (sales to new listing ratio) is 47.1%. This means that 47.1 out of every 100 listings actually sells (which also means 52.9 listings are NOT selling!) An SNLR between 40-60% is considered a balanced market. As we can see, we are getting closer to 40% and if we dip below that benchmark, we will officially be in a buyers market.
Now the average days on market in Durham Region was 24 this month but keep in mind that this is the average of every property that has sold. I am still hoping DREB will start keeping track of cumulative days on market since listings that cancel and relist will skew these numbers. 24 is a fairly healthy number as just this January the average days on market was 34! Regardless, our goal here is to have our listings sell within the first 7-10 days on-market.
These are all very promising numbers as it is showing buyer confidence is steadily returning and sellers have started to understand prices have stabilized. Now we are still having difficult conversations with sellers who are still holding out hope for 2017 prices but any seller who list their homes well above the market value will quickly see activity and interest to be extremely low. Pricing is the most important aspect when it comes to selling and buying real estate.
No matter what is happening in the market, no 2 listings are the same. Our goal is to educate our clients and create a custom game plan best suited for them to get them the maximum amount of money for their largest asset. If you ever have any real estate related questions or would like to know more of what your home is worth in the current market, never hesitate to reach out. Our goal is to be your go to real estate source in Durham Region. Until next month, have a good one!