Durham Region Real Estate Monthly Market Update
Last updated July 4, 2024, 1:00 p.m.
The real estate market in Durham Region has reached the end of June with very strong new listing activity and optimism from a buyer pool that has been active but cautious so far this year.
The market currently favours sellers, though listing inventory is climbing rapidly in several areas and price points as sales volume is trying to keep up.
Sales volume is performing in line with seasonal expectations, though it is still down from a low volume 2023. At least some of that drop can be attributed to persistently high mortgage rates, combined with tough qualification rules, which eat into buyer budgets.
Listing inventory is climbing, though still relatively low in south Durham relative to sales volume.
Multiple offer situations are now the norm 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 close to the 103% mark now. Improved buyer confidence looks to be driving the change.
The June 5 Bank of Canada announcement to cut the overnight rate to 4.75% should further boost confidence in the market. The consensus among economists and industry professionals is that rates should drop further as the year progresses. The next announcement is scheduled for July 24.
Supply ranges from very low to moderate, with 2.6 months of inventory (MOI) for the entire region, and higher levels in north Durham communities. This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame.
Durham Region Real Estate Market June 2024
In June, transactions reported thus far had selling prices averaging 95,428 in Durham Region, with the average property selling at 103% of list price (SP/LP).
Here is a look at average detached home selling prices daily over the past 3 months: Prices have been relatively stable over the past few months.
The average selling price of detached homes in Durham was just over 1,060,000, as displayed by location in the following map.
Townhouses in Durham averaged 832,000 in June. That figure is substantially lower than other areas of the GTA.
Condo apartments averaged 578,000 in Durham in June.
Most communities in south Durham showed sales at levels above list price. The following chart shows how market tightness slowed over most of 2022 and picked up in early 2023, before dropping recently.
Many listings at low to 1 million plus 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.
Also, SPLP (selling price to list price ratio) has averaged near the 103% mark, indicating that most homes sell above their list price. In those cases, more than one offer is being placed on properties, signalling that bidding situations are still in the mix - just not with the same frequency as before the recent downturn.
Note the lack of blue bars in the chart, demonstrating SPLP averages below 100%, versus red bars, indicating averages above 100%. Those red bars are now overwhelmingly dominant, showing buyer competition on listings is the norm.
Days on market (DOM) averaged 15 days. 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 in the spring. It is now at a very low level.
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 low compared to the rate of sales. Active listings are now at a high point since 2019.
The number of active listings also makes competitive actions 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 has decreased by 3.3% compared to last month and is down 2.3% compared to last year, with 877 total transactions.
The following chart shows the daily sales volume for the past 3 months.
Buyers will find multiple offer situations in many locations and price ranges, 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 being volatile, and mortgage qualification rules under review, locking in a rate is more important than ever. Speak with your agent to discuss the process to move forward.
Sellers should be planning to put their homes on the market soon and working with their agent to set their home apart from competing listings while reaching the widest possible audience.
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 this further without any obligation.
More Durham Region and Area Real Estate Articles
Northumberland Real Estate Market Report
Peterborough Real Estate Market Report
Durham Region Property Tax Rates - GTA and Ontario
Durham Region Market Report - April 2024
About the Author
John Owen, Broker, RE/MAX Impact
John is an award-winning broker with RE/MAX Impact Realty in Courtice, ON, and was their number one agent in GCI for 2022.
Direct - 905-434-0067
Email - johnowen@remax.net
Member, 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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