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Durham Region Real Estate Market Report - August 2024

Durham Region Real Estate Market Report - August 2024

Durham Region Real Estate Monthly Market Update

Last updated September 5, 2024, 11:30 a.m.

The real estate market in Durham Region has finished August with lower sales volume and prices amid high inventory levels and increasing optimism from a buyer pool that has been waiting out better conditions on the interest rate and economic fronts.

The market is more balanced, as listing inventory has climbed in several areas and price points as sales volume lags. Inventory reached a high in Durham Region not seen since 2011 in mid-August, before easing off later in the month. The result is a market that gives buyers a short-term opportunity to enter the market before more buyers become active as interest rates drop and economic news becomes more positive.

Sellers should be realistic about expectations, especially in the middle and higher price ranges 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.

Sales volume aligns with seasonal expectations and is similar to the low levels experienced last year. At least some of that can be attributed to persistently high mortgage rates, combined with tough qualification rules, which eat into buyer budgets.

Listing inventory is climbing, though still somewhat low in south Durham relative to sales volume. 

Multiple offer situations are still 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 September 4 Bank of Canada announcement to cut the overnight rate to 4.25% helped further bolster consumer confidence. Economists and industry professionals are confident that rates will drop further as the year progresses. The next announcement is scheduled for October 23.

The chart below shows sale prices for all home types over the past year across Durham Region and areas to the north and east. Those on a budget may want to consider the outlying regions for their home search.

Supply ranges from low to moderate, with 3.3 months of inventory (MOI) (trend figure from TRREB is 2.1) for the entire region, and higher levels in north Durham. This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame.

Durham Region Sellers Market 2024

Durham Region Real Estate Market August 2024

In August, transactions reported had sale prices averaging 907,997 in Durham Region, with the average property selling at 100.2% of list price (SP/LP). This is a drop of 0.8% from last month and a 2.5% decrease from last August. 

Durham Region had the strongest market stats in the Greater Toronto Area regarding months of inventory (lowest) and affordability (lowest average sale price).

Real estate prices Durham Region 2024 chart

Here is a look at average detached home selling prices daily over the past 2 months: Prices have been stable over this period, though dropping slightly.

Durham Region Detached Home Prices Daily bar chart 2024

The average selling price of detached homes is just above 1,000,000, as reflected in the following map. 

Detached Home Prices Durham Region 2024 map

The following chart shows how market tightness slowed over most of 2022 and picked up in early 2023, before dropping recently.

Durham Region Market Report Selling Price to List Price Chart 2024

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.

Durham Region sale to list price ratio daily 2024

Also, SPLP (selling price to list price ratio) has averaged near the 100% mark, indicating that some 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 increase in blue bars in the chart, demonstrating SPLP averages below 100%, versus red bars, indicating averages above 100%. Those red bars are becoming less dominant, showing buyer competition on listings is dropping off.

Days on market (DOM) averaged 23 days this month. DOM is the number of days it takes for a property to be sold firm, or without any remaining conditions.

Free home evaluation Durham Region

This figure typically rises in the winter season and is lowest during the spring peak. It is now starting to creep back up.

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 the market closer to a balanced market.

Active listings dropped to seasonal low levels in January. They have climbed since then, though sales have been strong enough to keep inventory levels somewhat low compared to the rate of sales. Active listings are now near a high point since 2011.

Durham Region active listings 2024

The number of active listings also 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.

Sales volume Durham Region 2024

The sales rate decreased by 9.0% compared to last month and is down 8.6% compared to last year, with 709 transactions recorded.

The following chart shows the daily sales volume for the past 2 months. Sales volume is usually lower in the summer than in spring and autumn.

Durham Region real estate sales volume 2024
Durham Region Real Estate Local Stats Aug 2024
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Search Durham Region listings with sold prices

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 qualification rules under review, 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 their homes 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 if you wish to discuss this further without any obligation.

More Durham Region and Area Real Estate Articles

Durham Region Property Tax Rates - GTA and Ontario

Durham Region Market Report - July 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 RE/MAX Courtice Oshawa Clarington

John Owen, Broker, RE/MAX Impact

John is an award-winning broker with RE/MAX Impact Realty 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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