Durham Region Real Estate Daily Market Update
Last update Sep 27, 2023, at 2:45 p.m.
The real estate market in Durham Region is approaching the end of September with conditions that still favour sellers in most price points and locations, even though there are signs that the market has relaxed. Inventory levels are at a high for the past year, and multiple offer situations are receding.
Inventory has risen over the last several weeks, and sales volume that had tapered off for the summer shows signs of rebounding. We are starting to see stats that show things improving for buyers, though an increase in sales volume may put things back in seller territory.
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Mortgage rates are back on the rise recently, making pre-approval (and rate lock) critical steps for buyers who haven’t purchased yet.
Multiple offer situations are still commonplace in low to mid-price ranges, as buyers scramble to compete for homes within their budgets.
Supply is low to moderate, with 2.7 months of inventory (MOI) for the entire region, with higher levels in some 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).
In September, transactions reported thus far had selling prices averaging 924,093 in Durham Region, with the average property selling at 102.1% of list price (SP/LP). This is a 0.7% decrease from last month and a 1.1% increase from last year.
Here is a look at average detached home selling prices each day over the past 3 months: The trend shows prices climbing at a healthy pace over the first several months of the year, then turning lower over the summer. They are now levelling off.
The average selling price of detached homes is just under 1,040,000, as summarized in the following map.
If you look at the top chart's selling price to list price ratios, communities in south Durham show sales at levels above list price. The following chart shows the trend - another key indicator of why the market had slowed over the last year and had picked up in early 2023.
As of late, many listings at low to middle 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 has averaged above the 100% mark, indicating that most homes sell above their list price. This shows that a common scenario is for there to be more than one offer on properties, signalling that bidding situations are still in the mix - just not with the same intensity as earlier in the year.
Days on market (DOM) averaged 16.2 days. DOM is the number of days it takes for a property to be sold firm, or without any remaining conditions.
This figure had dropped substantially in the spring and has been higher over the summer. It is now dropping again.
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 had dropped in the winter months. They have risen to the highest levels since 2020, though sales have been strong enough to keep inventory levels low compared to the pace of sales.
The level of listings also makes all the steps taken to compete among selling properties more essential. 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 have pressure in competitive situations to remove conditions on their offers.
The sales rate has decreased by 22.2% compared to last month and is down 7.8% compared to last year, with a current pace of 20.1 units sold daily.
The following chart shows the daily sales volume for the past 3 months.
Buyers will still 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 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.
More Durham Region and Area Real Estate Articles
Northumberland Region Real Estate Market Report
Peterborough Region Real Estate Market Report
Durham Region Property Tax Rates - GTA and Ontario
Durham Region Market Report - August 2023
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.
Office - 905-240-6777
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: detached, semi-detached, condo townhouse, condo apartment, link, att/row/townhouse, co-op apartment, detached condo and co-ownership apartment.
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