Durham Region Real Estate Market Report - August 2022
Latest update - September 2, 2022 at 2:30pm
The real estate market in Durham Region has transitioned to the final stage of summer, with a changing market dynamic that is now much more buyer-friendly.
There has been an easing of key metrics that measure the intensity of the market. Interest rates are rising, active listings are increasing, sales volume has dropped, and the ratio of selling price to list price has declined along with average sale prices.
Supply is moderate, with 0.9 months of inventory (MOI - trend figure, per TRREB) for the region. (This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame).
In August, transactions reported thus far had selling prices averaging 920,269 in Durham Region, with the average property selling at 100% of list price (SP/LP). This is a 7.2% decrease from last month and a 1.1% decrease from last year. It is also 25.1% lower than the peak we hit in February (1,228,962).
The following chart shows detached home sale prices in GTA regions in July. Durham Region averaged 1.012M, while the other major regions were substantially higher.
The chart below shows selling prices for all types of residential listings over the last year. The peak was in February.
Here is a look at average detached home selling prices each day over the past 3 months:
The average selling price of detached homes is just under 1,010,000 overall, as summarized in the above map.
Townhouse sale prices are now averaging just under 810,000 across the region.
If you look at the selling price to list price ratios in the top chart, most communities in south Durham are still showing sales at levels above list price. The following chart shows the trend - another key indicator of why the market had been so hot, and also illustrates how things are easing this spring.
Of particular note is how the sale price to list price ratio has dropped at a much sharper rate than selling prices. This is due to two factors. First, more listings are being pulled off the market after not getting the results they wanted on the offer date published (with a lower than market list price), then re-listed at a (more realistic) higher price with no offer date. Second, more listings are being posted with no offer date at all, and a list price that is more in line with recent comparable sales.
Days on market (DOM) averaged 17 days. DOM is the number of days it takes for a property to be sold firm, or without conditions.
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 have jumped sharply in the past few months, providing more options for buyers. Note that they are still below 2019 levels.
It also makes all the steps taken to compete among selling properties more important. When listings were scarce, buyers were compelled to reduce expectations on location, property condition, etc. Those properties that have issues should now see challenges in attracting strong offers and competition.
The pace of sales was at 24.7 units per day - up 9.3% from last month and down 26.7% from the same period last year. Given that the average property sold at above list price, the slower pace of sales versus 2021 isn't solely due to decreased buyer demand. There is still a shortage of supply, although that factor has diminished as the year progresses.
Buyers will continue to find multiple offers in some situations 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 rising, locking in a rate is more important than ever. Speak with your agent to discuss the process to move forward.
Prices by property type across the GTA for August 2022
Durham Region Real Estate - City Reports August 2022
For those of you considering selling (or buying), brand makes a big difference. When marketing a property, the size of the company and its network combined with the productivity of its agents can make a huge difference in the outcome. The following chart shows listing sales by major brands over the last 3 months:
Here is a look at market share for buyer agents, (also referred to as selling or co-operating).
Sellers should be considering getting on the market now or soon, and working with their agent to set their home apart from competitive 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.
About the Author
John Owen is an award-winning Broker with RE/MAX Impact Realty in Courtice, ON.
Office - 905-240-6777