With only a couple of weeks left in 2019, a lot of speculation is coming out from media outlets and industry on how they expect 2020 to do for the real estate market.
Unsurprisingly, there are a number of 'experts' foretelling yet another crash of the market. If the recent market performance as winter descends upon us is any indicator, expect a strengthening of the market. Let me explain what is going on.
For the first half of December, Durham Region showed a drop in sales volume from the same period in November. That's to be expected, as the cold weather brings on the slowest volume of the year. What's not typical is what is going on with prices and inventory.
Prices are holding at near year-highs and inventory is exceptionally low in most areas. As a result, we are seeing listings selling at very close to list price, and with a days-on-market average that is very low for this time of year.
The highest price point of the year for the region was in May, where the average selling price was $622,292. So far this month, we are at $644,666. Last December, the average was $587,200 (well below the 2018 high of $610,728 in June).
This is exciting news for sellers considering a move before the spring market. With inventory low, they have an opportunity to enter the market with little competition (compared to spring) and high demand.
On the other hand, buyers need to be well-armed with information and be prepared to act quickly when they find a home that they like.
*** - note that the information in this chart was originally sent to my newsletter subscribers on Dec 17. Six additional transactions have been reported since, and are reflected in the chart above.