Durham Region Real Estate Market Report - June 2022
Read - Daily Market Report
Latest update - July 6, 2022 at 10:30am
The spring real estate market in Durham Region is now finished, with a large number of active listings - now at their highest level in the past year.
There has been some easing of key metrics that measure the intensity of the market. Interest rates have begun to rise, 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 low, with 0.7 months of inventory (MOI) for the region (trend figure, per TRREB). (This means that at the current pace of sales, with no new listings, all inventory would be sold within this time frame).
Here is how detached home prices were reported for major regions in the Greater Toronto Area. It shows why Durham Region has been so busy by offering dramatically lower average prices for family homes. The gap between GTA regions has widened in recent months, offering even more motivation for home buyers to look in Durham.
In June, transactions for all residential property types had selling prices averaging 969,424 in Durham Region, with the average property selling at 104% of list price (SP/LP). This is a 2.6% decrease from last month and a 5.7% increase from last year.
Here is a look at average detached home selling prices each day over the past 3 months:
Here are the selling prices for homes in the GTA by different home types:
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, then re-listed at a 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 comparable sales.
Days on market (DOM) averaged 12 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 weeks, providing more options for buyers. 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.
Buyers will continue to find multiple offers common in many listings. 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.
Durham Region Real Estate - City Reports June 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 brand since March 30:
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