DURHAM REGION REAL ESTATE MONTHLY HOUSING REPORT
Summarized by Jacob Asparian, Broker
Hey what's going on everybody! Hope youre all doing well. My name is Jacob and I’m the team lead for Asparian & Co, a team focused on all things real estate in Durham Region. Today we are going to review the market update numbers for January 2020.
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 deeper dive by looking at current inventory benchmarks and then talk about what this all means with a few key takeaways.
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 944 new listings come to the market in Durham Region this December, which was a noticeable decrease of 20% from the 1181 that came to market last year at this time.
We had 586 homes sell in Durham Region this January and that is a significant increase of almost 16% from the 508 that were sold in January 2019.
AVERAGE SALES PRICE
So what does this all mean for sales prices? The average sale price in Durham Region in January 2020 was $655,781. This is an increase of 13.5% from the 2019 average of $577,935!
Now the total months of inventory in Durham Region is currently at 1.5 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 2.7 months of inventory.
What does months of inventory mean? 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 jumped up to 34 which is more than the 32 DOM we were at last year at this time.
The average sale price to list price ratio was 99% and SNLR (sales to new listing ratio) is 62.1%. This number has actually cooled off from December number but we are still in a sellers market and will be keeping a close eye on how things progress.
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 the midst of a tight sellers real estate market again in Durham Region but we will see if the trend will continue.
My main takeaway from January:
Average sales price has only been higher 3 other months in Durham Region history!
While sales are at the same level of 2017 we have had inventory like 2018 levels. Not enough, but still no where near as tight as 2016/2017. We are in a “mini-2017” market repeat
-Buyers. You have competition out there especially under $600,000. Inventory is extremely tight. It is very important to have a knowledgeable realtor working for you to help you navigate and guide you through the anticipated multiple offer bidding wars you will come across. If you are buying in higher sales price, you have some more options.
-Seller. To get your home sold for top dollar, make sure you still put the time in to showcase the property to its full potential. You have one shot at a first impression. The last thing you want in a busy market like this is for buyers to pass on your property to keep looking.
Prices fluctuate drastically throughout Durham Region, every single city and even the neighborhoods within those cities, are going to have varying numbers. If you are curious to know what your home is worth, we offer free, no obligation market evaluations.
There are so many variables out of our control that can affect our market that we really dont know what is going to happen in 30 days ,let alone 6-12 months, however, I genuinely believe Durham Region still has a lot of room for growth. With our proximity to Toronto and continued investment by all levels of government and businesses in the area, it is becoming no brainer for people who are looking for somewhere to establish roots. While we have seen strong growth over the last year, we are still quite undervalued compared to other municipalities around the GTA.
The biggest drivers of real estate values are population growth and employment. Both are extremely strong when it comes to Durham Region. We see no reason why demand or prices will slow down in the long term, however, the drastic increases shows that volatility is coming back.
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.
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Whether you’re thinking of buying, selling, or just interested to know what’s happening in the market, my team and I are always here to help answer any questions that you may have. Make sure you go give us a follow on FB, IG or LinkedIn to stay connected and to sign up for our weekly newsletters to be the first to get our new content/and listings.
Until next month, have a good one!