Hey guys, on today’s blog we’re going to be reviewing the market update numbers for Durham Region as of April 2019. As always, please keep in mind that this is a general overview for all of Durham Region. Every single city as well as every neighbourhood within those cities are going to have varying numbers.
If you’re interested in finding out what your home is worth and you’re thinking about selling, never hesitate to get in touch with us. We offer free, no-obligation market evaluations for you all. If you don’t want to meet with a real estate agent just yet, we’ve got a solution for you as well. Click here, type in your information and we’ll send you a free online market evaluation. Like I said, there is not cost or commitment for any of this.
Now let’s jump right into the numbers. When we look at the total number of new listings that came to market in Durham Region, we had almost 2,000. That’s almost a 4.5% increase from a year ago. Whitby is the leader of the pack with 19% from a year ago and Clarington is down almost a full percent when it comes to new listings that came to market.
Total number of sales in Durham Region has actually cracked the thousand mark and is at 1,075. This is a 15% increase from 2018, which is great news. Ajax leads the way with almost a 25% increase in total number of sales that they saw a year ago. Clarington is at the very bottom with an increase of just 2.5% from last year.
When we look at average sales price, what is really at the end of the day what most people care about, the average sales price is $612,195 for Durham Region. That is a 0.5% increase from a year ago. This is not shocking; this is actually good news. What this means is we’re noticing that the prices have stabilized. You’re going to see seasonal changes month over month, but a $612,000 average sales prices in Durham Region is extremely healthy.
When we look at the total days on market, we’re sitting at just under three weeks at 20 days. That’s actually pretty good. This is an average, so that means there’s quite a few homes that are actually selling quite a bit quicker than that, but 20 days is still fairly quick.
Days on market is what is helping result in our months of inventory sitting at 1.9. What’s months of inventory? If we were to stop listing today, but we kept selling at the current rate we’ve been selling for, how long before we run out of inventory? It’s a great way to gauge the amount of inventory versus activity. We’re at 1.9 months which is actually a sellers’ market. Anything under four months of inventory is a sellers’ market, it’s four to six that is a balanced one. Anything over six months is a buyer’s market, so we’re not anywhere close to that.
Another interesting stat that the real estate board is starting to keep track of is sales to new listings ratio. This means that out of all the homes that come on the market, how many of those are actually selling? Believe it or not, Durham Region’s rate is 53%. This means that 53 out of 100 homes are selling when they come on the market, but 47 people who are listing their homes are not selling. That is quite a high number of people not selling.
This month we had a client who purchased a home who didn’t want to put an inspection condition on her offer. This is one thing that I get all of the time, “do I really need a home inspection?” Buying a home is expensive, I understand that. You’ve got land transfer taxes, lawyer fees, moving costs and you’re trying to cut corners wherever you can. The home inspection is the most important aspect of buying a home. It’s only $400-$500, which is still a lot of money, but in the grand scheme of things with how much you’re already spending when it comes to purchasing the home, it’s a drop in the bucket. You would never buy a car without taking it for a test drive so you should definitely never buy a home sight unseen. Always get an inspection. There are ways around it to make sure you’re still competitive in a multiple offer situation. The client ended up doing the inspection and everything was clear. She said, “there goes $400.” It’s $400 that is peace of mind to understand that you’re buying something that doesn’t have any defects and it’s not going to be a money pit for you down the road. At the end of the day you might get excited about the real estate search and you don’t want to lose out on a home, but you have to keep in mind that it’s still your most expensive asset and it’s an investment and you want to make sure you’re making money on this purchase.
Sellers, you do have a lot of competition right now. Average sales price is still fairly high so people are getting good bang for buck for their property, but you have to make sure you’re priced well. Staging and marketing are going to support your property, they are going to make sure you’re going to get a lot of exposure and your home shows very well. But you want to make sure you’re priced in line with these. If you’re not getting a lot of activity you want to figure out why. Are you priced too high? If you’re sitting there in your neighbourhood and you’re the only one that’s been on the market and you’ve seen a bunch of homes come up on the market and sell, that right there tells you there’s something either pushing the buyers away from your home, but more than likely it’s just overpriced. It’s not at the right price point it needs to be at to make it enticing enough for these buyers to want to come in.
Where is the market headed? Everyone is going to give you a different prediction as to what’s happening with the real estate market and I can make for the fact that the markets going to crash and I can make a case for the fact that the market is going to do well. I was just at an economic update that was held by the city of Oshawa and TD Canada Trust. That’s just one of the main banks and they believe that we’re in a consolidation phase right now for Canada and I agree. I think we’re going to go through some sort of a correction. We are very unique when it comes to Durham Region though. Durham is this nice little pocket of undervalued real estate when you look at all of the different areas around the GTA. You’ve got Peel, York, all of these different areas that are so overvalued compared to us. In addition to that we have a ton of government investments coming our way. The Metrolinx is expanding all the way to Bowmanville, you’ve got the 407 expansion and you’ve got all private sector companies really making heavy investments in Durham Region.
So over the next 5-10 years I truly do believe that the real estate in Durham Region is going to continue to grow. Our employment is strong, our population growth is strong. These are all fundamentals to having a long sustainable growth in the real estate industry in the particular area. What’s going to happen in the next 3-6 months? I have no idea, but you shouldn’t be buying a home if you’re not willing to stay there at least 3-5 years. For a 3-5-year outlook, I would guess that we’re going to be doing okay, but again you never know. There could be a lot of things happening outside of our control, but when it comes to real estate demand values and what we offer I believe Durham Region is going to continue to see explosive growth and I won’t be surprised to see the average sales prices hits $700,000 in the next couple of years.
I want to mention that there is a buyer seminar taking place May 29th at the Cork & Bean in Oshawa. We’re going to be doing this every couple of months and there is no cost or commitment for this. We’re going to be talking about the home buying process, things you’ve got to watch out for and pitfalls you have to avoid that could end up costing you thousands of dollars, as well as answering any of your unique questions. If you’d like to attend, send me a message and we’d love to put you on the list. Everyone who attends is also going to get a home buyer guide which is going to be what we are talking about in print form. If you cannot attend, you can get your free copy here.
I hope you guys enjoyed reading the market update for April 2019, if you have any questions or comments please leave them below or don’t hesitate to contact me.