Scugog real estate has posted a drop in average sales price in November of 2016 versus last year of 3.2%. The Toronto Real Estate Board's (TREB) latest market stats put the average property selling at $577,663 - down from last year's 596,480.
It is noteworthy that the smaller number of properties sold in Scugog versus other regions makes it more important to review the details of specific neighborhoods when considering the value of homes in the current market.
The average selling price of homes in the GTA this November was $776,684. This represents a 22.7% increase over 2015. Sales volume was up 16.5% and new listings grew 10.3% from last year.
Active listings were down a huge 35.8%, which shows a tremendously strained inventory that makes for incredible demand on the listings out there and resulting in bidding wars galore on well-prepared and marketed properties.
The average detached home in Scugog sold for 580,170. This is very close to the overall average number, as there are relatively few other home types being sold in Scugog compared to the centres south of here. So few, in fact, that I typically won't report on them as a group.
The MLS Home Price Index helps to normalize the statistics, by adjusting sales statistics to represent typical homes within MLS areas. When using these numbers, Scugog showed a composite annual gain of 16.34%, compared to the TREB average of 20.3%. This shows that the typical home in Scugog reflected a more typical gain in value, than the overall stats show.
Inventory levels continue at very low levels with 1.2 months of inventory on hand across the board. This means that a current sales levels, all of the property would be bought up in the GTA in 1.2 months (if no new listings were added). Many areas within the GTA have similar figures, but unsurprisingly to those who read my reports, Durham Region still has the lowest inventory in the entire area. Overall, there is only 0.7 months inventory in the area. In Scugog, there are 1.4 months of inventory. This is actually quite low for the area, which typically shows a much higher level.
The average listing in Scugog spent 20 days on the market. The TREB average was 17 days. Again, given Scugog's market size, it is normal to be higher than average here, but this is a very low figure compared to the norm.
The average listing sold for 98% of asking, demonstrating that demand is still quite strong, and an indication that there are still multiple offers happening on a substantial number of listings.
In summary, the statistical drop in sales prices doesn't mean that the sky is falling, especially as the MLS Home Price Index is showing a gain in prices. We will see what happens in the coming months, as tighter mortgage qualification rules and rising mortgage rates may impact the market.
If you are interested in seeing values for an area not shown, or are interested in other figures, please comment below or send me an email - John@JohnOwen.Realtor As always, give me a call anytime if you would like to discuss further without any obligation.