Even with the changes driven by COVID-19, the market remains tight in Durham Region, with selling prices near or above list price in most communities.
We are now seeing a strong recovery in both sales volume and price.
Inventory was rising and is now shrinking - now at 1.7 months for the region, with those areas in south Durham at the lowest levels.
Given that many transactions happen on the weekend, we also will see some fluctuation as more new listings hit the market on weekdays and more sales happen on the weekends.
Thus far in May, prices averaged 648,097 in Durham Region, with the average property selling at 98.7% of list price (SP/LP). South Durham areas showed the highest ratios. This is a 5.8% increase from last month, and a 4.1% 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 above.
This may also be indicative of stronger buyer activity and competition as COVID-19 restrictions are starting to relax.
Lower price bands are still making up the vast majority of sales right now.
Higher priced homes (over 800,000) are starting to move faster and with more volume (127 units, 33.7 DOM, 96.2% SP/LP), likely as families looking for higher-priced detached homes are becoming more active.
Many of the ones that are at the lower end of the price curve (under 800,000) are still selling at more than list (579 units, 20.5 DOM, 99.7% SP/LP), indicating that there still is a large demand out there.
Days on market (DOM) averaged 22.9 days, with south Durham showing lower numbers (21.0 days).
Inventory levels are starting to come down again, compared to last month when increases were indicative of the slowdown in activity due to COVID-19 mitigation efforts.
Pace of sales was at 25.2 units per day - up 52.7% compared to last month (17.1) but well below last May (37.8, -33.3%).
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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