The real estate market in Durham Region is heating up, with selling prices above list price in most communities.
We are now seeing a strong surge in prices from lows experienced during the COVID-19 economic shutdown. Sales volume has tapered off somewhat from the strong numbers in June, though that is normal for summer.
Figures are very early in the month thus far - expect them to fluctuate for several more days before the number of sales provide enough data to provide a reliable indicator for prices.
Supply remains tight with 1.3 months of inventory (MOI) for the region, with those areas in south Durham at the lowest levels. (This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame).
Thus far in July, prices averaged 707,374 in the region, with the average property selling at 102.1% of list price (SP/LP). South Durham areas showed the highest ratios. This is a 3.2% increase from last month, and a 16.9% increase from last year.
The rise in average prices reflects a higher number of properties selling at higher price points, combined with multiple offer situations at lower price points. If you look at the selling price to list price ratios in the above chart, most communities are showing sales happening very close to asking, but not substantially above.
This may also be indicative of stronger buyer activity and competition as COVID-19 restrictions continue to relax.
Higher priced homes (over 800,000) are now selling faster and with more volume (74 units, 24.2 DOM, 100.4% SP/LP), likely as families looking for higher-priced detached homes have now become more active.
Most of the ones that are at the lower end of the price curve (under 800,000) are selling at more than asking (196 units, 14.3 DOM, 103.2% SP/LP), indicating that there still is very strong demand out there.
Days on market (DOM) averaged 17.0 days. This figure has been trending lower as the market has picked up in pace.
Inventory levels are much lower now compared to late March and April when increases were indicative of the slowdown in activity due to COVID-19 mitigation efforts.
Pace of sales was at 38.6 units per day - down 6.7% compared to last month (42.7) and up 15.4% from last July (33.4).
Buyers will now find multiple offer scenarios increasingly common right now, at least in south Durham communities and lower price points. They are highly advised to get prepared - have their mortgage preapproval ready before looking at homes, and be prepared to view homes via photos and virtual tours as soon as they reach the market. Speak with your agent to discuss the process to move forward while being respectful of COVID-19 physical distancing and spread avoidance protocols.
Sellers should be considering getting on the market now or soon, and to work with their agent to implement mitigation protocols for COVID-19. Many brokerages are now using tools to enable showings virtually, via video call, as well as conducting client meetings and signings remotely, using digital tools.
If you are interested in seeing values for an area not shown or are interested in other figures, please comment below or contact me. As always, give me a call anytime if you would like to discuss further without any obligation.
Broker, REALTOR®, RE/MAX Impact Realty
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* - shading in the top chart signifies buyer or seller leaning stats - red is seller, blue is buyer with more intense shading signifying stronger impact.
Statistics are compiled from TRREB MLS® system, and may change as more sales are reported, errors corrected and deals that do not close are removed.