Durham Region's real estate market is anything but normal due to the health crisis that has affected virtually all aspects of life. While sales volume has significantly dropped since the mid-point of March, the local market is in surprisingly good condition overall.
Inventory has increased, though new listings are now hitting the market at a pace close to sales, thereby keeping prices relatively in line with March levels. Prices did come down 6.7% from March, but given that sales volume dropped 53.4%, it's quite remarkable that prices held like they did, and they are trending higher as we head into May.
With COVID-19 protocols in place, there are no longer open houses, and in-person showings are being discouraged. That doesn't change the fact that some people still need to buy and sell homes - for many reasons.
Real estate brokerages (and supporting services) continue to operate, with most offices closed to the public, and business being conducted using technology instead of in-person where possible.
Prices in Durham increased by 0.1% since April 2019 and dropped 6.7% since March 2020.
The latest market statistics show the average Durham property at $612,563 - down from last month's 656,211 by $43,648 (-6.7%).
Active listings in Durham Region were 1183 at the time this report was compiled. That is a 41.0% decrease from last year and a 3.7% decrease from March.
Currently, there are 1.8 months of inventory (trend figure, per TRREB), decreasing buyer competition for the time being, on average - note that there is competition on properties below 500,000 and also with specific types and/or locations, where we are seeing average properties selling above list price.
When the COVID-19 situation eases, expect listings (and sales) to rise sharply, as pent-up demand creates a surge in activity.
Sales volume in Durham Region decreased 52.4% from last year with 512 units sold versus 1075 last April. It was down from March by 53.5%.
Normally, we would be seeing a sharp rise in volume this time of year, as the spring market emerges, and this was the case for the first half of March. Things have tapered off substantially since then.
The time a property takes to sell is called DOM or days on market. It was 17 in April, showing a considerable decline in pace of sales. This figure has remained remarkably resilient, considering the affects of COVID-19 on showings and sales overall.
Another indicator of demand is sale price compared to list price. It was 99% in Durham in April, again showing considerable levels of buyer demand, as the average property sold for very close to list price.
These factors combined are a good barometer for sellers, as it shows that not only is current inventory moving at a rapid pace, but it is also selling at a price that is very close to or over asking.
Durham Region Prices by Home Type
Durham Real Estate Market Statistics by City
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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