Durham Region Real Estate Daily Market
Latest update - January 28, 2022 at 10:00am
The real estate market in Durham Region continues to outperform most GTA markets, with historically low inventory, low interest rates, and strong buyer demand resulting in selling prices near all-time record levels.
Supply is extremely low, with 0.6 months of inventory (MOI) 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).
Ajax and Whitby have 0.5 MOI.
In January, transactions reported thus far had selling prices averaging 1,172,674 in Durham Region, with the average property selling at 125.9% of list price (SP/LP). This is an 13.5% increase from last month and a 34.2% increase from last year.
The average selling price of detached homes has surpassed 1.1 million dollars in every Durham Region city, and 1.3 million overall, as summarized in the above map.
Townhouse sale prices are now averaging over 1 million across the region.
If you look at the selling price to list price ratios in the top chart, most communities are showing sales at levels well above list price. The following chart shows the trend - another key indicator of why the market is so hot right now.
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.
During the drop-off in sales volume due to the first wave of COVID, active listings remained high as sales volume dropped and prices fell off substantially. More recently, sales volume has been more in line with the number of active listings, which is why prices have increased or stayed stable.
The pace of sales was at 20.9 units per day - down 3.4% from last month and up 0.7% from the same period last year. Given that the average property sold at over 25% above list price, the slow pace of sales isn't due to low buyer demand. It is clearly due to a shortage of inventory.
There is some positive information for buyers to take from the regional figures. In northern Durham communities (Scugog, Uxbridge and Brock) average days on market range from 18 to 41 compared to under 8 for the southern areas. Also, sale prices are ranging from 100.1 to 108.5% of list price versus at least 123% in the south.
This means that listings in the north are on the market for longer, and are selling without nearly as much buyer competition, resulting in sale prices much closer to list price. For buyers looking to avoid bidding wars, the takeaway is to expand your search to the north.
Buyers will find multiple offers common through most 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.
For those of you considering selling, 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 brand name for sales in January.
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.