Let’s jump right into the numbers. We saw a fairly significant increase in activity for May across the board. (Click here to read last month's market update) Keep in mind when comparing ourselves to May 2018 we were at that point less than 12 months away from the market taking a complete dive off a cliff. Property values have come down 20%, buyer and seller confidence were at an all-time low and everyone was just kind of waiting on the sidelines to see how things were going to play out. So yes we’ve seen and uptick, but it’s an uptick compared to that point in time. When we look at the total number of listings that came to market, we saw an increase of about 6.5% in Durham Region. Ajax was the leader of the pack with almost 20% more listings this May than 12 months ago. Funnily enough, Oshawa was in last place with a decrease of 3.5% less listings this year than we did last year.
When we look at total number of sales we see an increase of about 36% more sales this month than we did 12 months ago. This shows that buyer confidence is returning and people who have been waiting on the sidelines have realized that property values have stabilized and are now starting to increase month over month and it might be a good time to get into the real estate market. Ajax and Whitby are at the front lines with an increase of 53% and 50%, Clarington is lagging behind with only a 12.5% increase with total number of sales.
Now when we look at the average sales price, which let’s be honest it’s the most important number people want to keep their eye on, we seen a 4.2% increase in property values from a year ago. The average sales price in Durham Region is at $622,000, which is an increase from $597,000 a year ago. Pickering is still at the front line with an average sales price of $708,000, but they’ve seen a drastic decrease from a year ago where their average sales price was $730,000.
Some of the other numbers we like to take into consideration when we’re reviewing any market is the months of inventory. Right now we are sitting at 2. What does months of inventory mean? If we were to stop listing today, but kept selling at the current rate, how long would it take to run out of inventory? Anything under 4 months is a seller’s market, 4-6 is a balanced market, and 6 and above is buyer’s market so we are nowhere near a buyer’s market right now. Ajax is actually the hottest market with a months of inventory of only 1.4 and Clarington is lagging behind at around 2.3, but it’s still again a seller’s market. This is what’s actually attributed to the days on market being really low. The average days on market for Durham Region is 19. That means it’s taking the average person less than 3 weeks to sell their home. Keep in mind this is an average, there’s quite a few homes selling with under a week on the market and quite a few higher than that.
When we look at the sales to new listings ratio we’re sitting at around 49% for Durham Region. That means that almost half of all the listings coming to market are selling. It is a seller’s market, but even in a seller’s market that also means that 51% of sellers or people who are listing their homes are actually not selling. That is a fairly significant number. 1 out of every 2 people are listing their home and just sitting there helping the other listing across the street from the sell.
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