Durham Region Real Estate Monthly Market Update
Last updated November 5, 2024, 5:30 p.m.
Graphics updated 5:30 p.m.
October stats will be updated as more transactions are reported.
Durham Region Real Estate Market Report - September 2024
The real estate market in Durham Region is showing signs of a fall rally as we wrap up October.
Buyers have become more active. Inventory levels are lower than recent highs. For now, buyers may have a short-term opportunity to enter the market with an advantage over sellers in some locations and price ranges. That window appears to be narrowing rapidly.
Sellers should be realistic about expectations, especially in the higher price ranges, northern communities and condo apartments in all price ranges. Sale prices are far closer to list prices than just a few months ago, and price reductions are commonplace when listings do not sell within market norms.
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Sales volume is rising and far outpacing the low levels experienced last year.
Listing inventory is easing from the highs reached last month.
Multiple offer situations are becoming more common in lower and middle price ranges, as buyers scramble to compete for homes within their budgets. Read on for more details on how average selling prices are now close to parity with list prices.
The October 23 Bank of Canada announcement to cut the benchmark overnight rate to 3.75% helped further boost consumer confidence. Economists and industry professionals anticipate that rates will continue to drop in the coming months. The next announcement is scheduled for December 11.
Mortgage rates have been volatile recently. If you are shopping for a home, or have a mortgage renewal coming up, keep a close eye on rate offerings, and check with your mortgage broker regularly, as there have been frequent changes.
The maximum purchase price of a home for insured mortgages will increase to 1.5 million (was 1 million), effective Dec 15. This change will substantially affect homes listed above the one million dollar price point, as consumers who were limited to that cap because of limited down payment funds can now purchase above that point.
Supply ranges from low to moderate, with 2.6 months of inventory (MOI) for the entire region. This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame. It also makes Durham Region a seller’s market.
Durham Region Real Estate Market October 2024
In October, transactions for all types of homes reported thus far had sale prices averaging 891,002 in Durham Region, with the average property selling at 100.0% of list price (SP/LP). This is down 0.4% from last month and down 4.4% from last October.
Durham Region currently leads the Greater Toronto Area based on buyer competitiveness (highest sale price to list price ratio) and affordability (lowest average sale price).
Here is a look at average detached home selling prices daily over the past 2 months: Prices have dipped slightly over this period.
This month's average selling price of detached homes is just above 985,000, as reflected in the following map.
Looking at the top chart's selling price to list price ratios, a few communities in south Durham show sales at levels above list price. The following chart shows how market tightness rose over the early part of 2024, before dropping this summer.
Some listings at low to mid price points are posted with offer dates, where no offers will be considered until that date. This is intended to pressure buyers (given the shortage of listings) and generate multiple offers.
The selling price to list price ratio (SPLP) has averaged near the 100% mark, indicating that about half of homes sell above their list price. In those cases, more than one offer is being placed on properties, signalling that multiple offer scenarios are still in the mix - just not with the same frequency as before the recent downturn.
Note the blue bars in the chart, demonstrating SPLP averages below 100%, versus red bars, indicating averages above 100%. Those red bars are less dominant than earlier in the year, showing buyer competition on listings has come down (except at low price points).
Days on market (DOM) are averaging 23.5 this month. DOM is the number of days it takes for a property to be sold firm, or without any remaining conditions.
This figure typically rises in the winter season and is lowest during the spring peak.
Should new listings rise at a pace that is faster than current sales, then there would be more inventory for the pool of buyers to choose from, which will have the effect of reducing the sale price to list price ratio, then months of inventory stat, which leans us closer to a balanced market.
Active listings dropped to seasonal low levels in January. They have climbed since then, creating more balance in the marketplace. Active listings have come down substantially from a 13-year high in Durham Region reached last month.
The high number of active listings makes competitive strategy more essential when selling a property. When listings were more scarce, (including now but at lower price points) prospective buyers were compelled to reduce expectations on location, property condition, etc. They also will be pressured in competitive situations to remove conditions on their offers.
The sales rate is up by 19.9% compared to last month and 47.3% compared to last October, with 27.8 daily transactions.
The following chart shows the daily sales volume for the past 2 months.
Buyers will find multiple offer situations in some locations, particularly at 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. With interest rates dropping and mortgage rules changing, knowing your options is more important than ever. Speak with your agent to discuss the process to move forward.
Sellers should plan to put their homes on the market soon and work with their agents to set them apart from competing listings while reaching the widest possible audience. This is particularly important at mid to high price points.
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, reach out anytime to discuss this further without obligation.
More Durham Region and Area Real Estate Articles
Durham Region Property Tax Rates - GTA and Ontario
Durham Region Market Report - September 2024
Durham Region Property Tax Calculator
Market reports and information for surrounding areas can be found on my other blogs - see the menu for details.
About the Author
John Owen, Broker, RE/MAX Impact
John is an award-winning RE/MAX broker based in Courtice, ON.
Direct - 905-434-0067
Email - johnowen@remax.net
Member - RE/MAX Hall of Fame, Canadian Real Estate Association (CREA), Ontario Real Estate Association (OREA), Toronto Regional Real Estate Board (TRREB).
The figures shown are for the following property types unless otherwise specified: detached, semi-detached, condo townhouse, condo apartment, link, att/row/townhouse, co-op apartment, detached condo and co-ownership apartment.
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