The market is back! Very hot and similar to the first quarter of 2017 with several multiple Offer sales transactions.
This February saw 20 sales greater than $2,000,000 with the highest sale going for $9.4 million! This of course inflates the average price for a detached 2-storey home to almost $1.7 million or, more specifically $1,696,000. That's up 25% from last February's $1,353,000 average sale price and this January's $1,350,000. And the time it takes to sell a home has been cut in half to 16 days.
Sales volumes have increased dramatically as well to 300 from 196. Up over 50%! Mind you we had 1 extra day with February 2020 being a leap year.
It also looks like there may be a rate cut coming soon and it may be as much as 1/2 a point. So that should spur on more activity.
So far the Coronavirus has not seemed to impact our Canadian housing market. It has however, effected China's housing market and North American stock market indices. This may likely cause a slow down in our real estate market if consumers portfolios continue to drop in value (on a paper basis) and decisions to move are shelved. Will have to wait and see.
Boomers anticipating a lifestyle change move will likely go ahead with their plans.
Monday, March 2, 2020
Sunday, February 2, 2020
January 2020
Welcome to a new decade! Let's hope for things to improve.
Prices are essentially flat year over year. Detached 2-storey homes for example sold for and average price of $1350000 down slightly from January 2019's $1356000. 2-storey selling prices had gone up to $1374000 during the 4th quarter of 2019 so there was positive price movement in 2019. The average time it took to sell a home was up 3 days to 42. Also not that many homes were (sold) closed this January compared to last January. However, a number of homes sold during the month that will close over the next few months. In many cases these homes were relisted at lower prices after being on the market for several months last year at a higher price and not selling. So it is nice to see the new life in the market this year. There were 56 pending detached 2-storey homes sold in January 2020. 51 sold over $1000000 and 14 sold over $2000000.
Volumes are still low, as is inventory/supply but we are starting to see more homes come to market. Not surprisingly when a home that appeals to the masses comes along we see multiple Offers.
I expect the market to become more active with more listings and sales. There are alot of buyers shopping around. You see them when a new listing hits the market, when you are out showing a home and another agent is also showing the same home at the same time, and at open houses. It looks like this Spring and the months leading up to it will be very busy.
On the rental side there were 97 sales closed in January compared to 174 a year ago, down 80%. Given the overall low sales volumes that is still a healthy number. In a few instances the owner was unable to sell a new luxury home and had to resort to renting it out until prices increase.
Interest rates are still very attractive and low. Banks are offering 5 year rates not much higher than shorter term money (about 30 basis points) which tells you they are not foreseeing any immediate major increases to the prime lending rate and are looking to secure more longer term mortgages to increase their profit margins.
Prices are essentially flat year over year. Detached 2-storey homes for example sold for and average price of $1350000 down slightly from January 2019's $1356000. 2-storey selling prices had gone up to $1374000 during the 4th quarter of 2019 so there was positive price movement in 2019. The average time it took to sell a home was up 3 days to 42. Also not that many homes were (sold) closed this January compared to last January. However, a number of homes sold during the month that will close over the next few months. In many cases these homes were relisted at lower prices after being on the market for several months last year at a higher price and not selling. So it is nice to see the new life in the market this year. There were 56 pending detached 2-storey homes sold in January 2020. 51 sold over $1000000 and 14 sold over $2000000.
Volumes are still low, as is inventory/supply but we are starting to see more homes come to market. Not surprisingly when a home that appeals to the masses comes along we see multiple Offers.
I expect the market to become more active with more listings and sales. There are alot of buyers shopping around. You see them when a new listing hits the market, when you are out showing a home and another agent is also showing the same home at the same time, and at open houses. It looks like this Spring and the months leading up to it will be very busy.
On the rental side there were 97 sales closed in January compared to 174 a year ago, down 80%. Given the overall low sales volumes that is still a healthy number. In a few instances the owner was unable to sell a new luxury home and had to resort to renting it out until prices increase.
Interest rates are still very attractive and low. Banks are offering 5 year rates not much higher than shorter term money (about 30 basis points) which tells you they are not foreseeing any immediate major increases to the prime lending rate and are looking to secure more longer term mortgages to increase their profit margins.
Wednesday, January 1, 2020
4th Quarter 2019
The average sale price for a detached 2-storey home was $1374000 and it took 39 days on average to sell a home during this quarter. That is the lowest 4th quarter average selling price over the last 2 years when they sold for $1646000 and $1476000 in 2018 & 2017, respectively. Those average days on market were 37 and 30.
Condo apartment average selling price was $520514 which is down from last year's $535000 and up from 2017's $492000. Similarly detached bungalows sold for $989571 down from $1018000 and $1268000 when compared to 2018 and 2017.
Sales volumes improve to 376 this quarter from last years 248, for all types of housing, but are still down from 2017's 549 sales.
The rental market has show some strength with 432 properties rented compared to 2018's 260.
Here's hoping the economy for 2020 will experience positive price growth with the continued low interest rate environment, a brand new decade to look forward to and the expected settling down of the political and economic policy.
Condo apartment average selling price was $520514 which is down from last year's $535000 and up from 2017's $492000. Similarly detached bungalows sold for $989571 down from $1018000 and $1268000 when compared to 2018 and 2017.
Sales volumes improve to 376 this quarter from last years 248, for all types of housing, but are still down from 2017's 549 sales.
The rental market has show some strength with 432 properties rented compared to 2018's 260.
Here's hoping the economy for 2020 will experience positive price growth with the continued low interest rate environment, a brand new decade to look forward to and the expected settling down of the political and economic policy.
Wednesday, October 16, 2019
3rd Quarter 2019
There are 35% more homes/THs and apts on the mkt than there were at this time last year.
858 compared to 636.
Of those 70% are listed at a million dollars or more. Here is the breakdown;
$4000000+ 35
$3-$4mm 40
$2-$3mm 134
$1-$@mm 387
198 properties sold for $1,000,000 or more during this quarter.
The average price of a detached 2-storey homes was $1387600 down 8.5% from last years $1505000 average. Don't be alarmed by that as the mix of price points varies from year to year.
The average price of a detached bungalow was $955,700 up 5% from an average of $912000 last year. Sidesplits fared a little better with an average sale price of $1074000.
The rental market has 253 properties available for lease ranging from a modern 2-storey in Southeast Oakville which is asking $14000/mth to $1600 for an upstairs apt in a low rise building in Bronte.
Many Seller's are experiencing low activity from potential buyer's for open house activity and showings and this is testing their patience.
858 compared to 636.
Of those 70% are listed at a million dollars or more. Here is the breakdown;
$4000000+ 35
$3-$4mm 40
$2-$3mm 134
$1-$@mm 387
198 properties sold for $1,000,000 or more during this quarter.
The average price of a detached 2-storey homes was $1387600 down 8.5% from last years $1505000 average. Don't be alarmed by that as the mix of price points varies from year to year.
The average price of a detached bungalow was $955,700 up 5% from an average of $912000 last year. Sidesplits fared a little better with an average sale price of $1074000.
The rental market has 253 properties available for lease ranging from a modern 2-storey in Southeast Oakville which is asking $14000/mth to $1600 for an upstairs apt in a low rise building in Bronte.
Many Seller's are experiencing low activity from potential buyer's for open house activity and showings and this is testing their patience.
Monday, July 8, 2019
2nd Quarter 2019 vs 2018
On the bright side prices were up just over 5% for detached 2-storey home sales. Also the rental market is going crazy with many accommodations receiving multiple Offers to Lease, and the actual number of Leases has doubled.
The doom and gloom is the actual number of sales. For all types of properties, condo's, semi's, THs... there were approximately 400 sales compared to about a 1000 in 2018. Detached 2-storey homes dropped to 181 sales from 522. That is significant.
Buyer's have more choice but still have to deal with tight lending rules and high prices which makes acquiring a property difficult.
It's difficult to forecast the remainder of the year so we will just have to wait and see.
Thursday, May 23, 2019
1st Quarter 2019 vs 1st Quarter 2018
The market remains a Buyer's market with thin inventory levels. It also requires you to be patient as properties are taking longer to sell. With this late Spring we expect the summer period to more active than usual as families scurry around to relocate their homes.
The average sale price for a detached 2-storey homes was $1391500 down 2% from 2018's $1421000. This is similar to the average price back in 2016.
Sale volumes were up 8.25% for detached 2-storey homes with 287 sales compared to 263 in 2018. Volumes were up 4% overall for all sales types of housing; condo's, semi's...
Price, in this market, is surprisingly not necessarily tied to a quick sale. I know of an instance where a home initially on the market in the $1.3mm range for a couple of months tried to auction it off by reducing the asking price to below a million dollars and wound up reverting it back to their higher price after not securing an acceptable Offer. That home was on at the lower price for 2 weeks.
Interest rates should remain flat with the possibility of a slight reduction to stimulate the housing market and aid the growing mounds of personal debt.
The average sale price for a detached 2-storey homes was $1391500 down 2% from 2018's $1421000. This is similar to the average price back in 2016.
Sale volumes were up 8.25% for detached 2-storey homes with 287 sales compared to 263 in 2018. Volumes were up 4% overall for all sales types of housing; condo's, semi's...
Price, in this market, is surprisingly not necessarily tied to a quick sale. I know of an instance where a home initially on the market in the $1.3mm range for a couple of months tried to auction it off by reducing the asking price to below a million dollars and wound up reverting it back to their higher price after not securing an acceptable Offer. That home was on at the lower price for 2 weeks.
Interest rates should remain flat with the possibility of a slight reduction to stimulate the housing market and aid the growing mounds of personal debt.
Sunday, January 6, 2019
4th Quarter 2018 compared to 2017
Many homes are languishing on the market and taking a lot longer to sell, requiring price reductions in many cases to achieve a sale. Days on market are up one week to 37 days on average from 30 days during the same period in 2017. And many unsold homes have been on the market for months.
Interestingly, the average price of a detached 2 storey home sold for $1646000 compared to $1476000, up 11.5%. Condo apartment prices were also up to $535000 on average up 8.5% from $492000 in 2017. Bungalows did not fare as well and had an average sale price of $1018000 down 25% from $1268000. There were more expensive bungalow sales in Southeast Oakville in 2017 compared to those which sold in 2018 which attributed to this change.
The big news is sales volumes continue to be low and were off 110% fourth quarter over fourth quarter from 549 sales in 2017 to 248 sales in 2018. That's a significant difference.
Rental sales were down 13% to 204 from 231.
Like 2018 it looks like 2019 will be another difficult year especially with the current turmoil in the stock market, Trump shenanigan politics and the forecast of more interest rate increases. But we will know more in a couple of months as to how the year will unfold.
If the economy turns to a more positive tone we could see a number of the baby boomers who have been sitting on the fence wondering whether to sell/cash out, come to market. Were that to happen we will have an onslaught of inventory and a buyer's market! And there are many buyer's waiting for more choice properties to hit the market.
Interestingly, the average price of a detached 2 storey home sold for $1646000 compared to $1476000, up 11.5%. Condo apartment prices were also up to $535000 on average up 8.5% from $492000 in 2017. Bungalows did not fare as well and had an average sale price of $1018000 down 25% from $1268000. There were more expensive bungalow sales in Southeast Oakville in 2017 compared to those which sold in 2018 which attributed to this change.
The big news is sales volumes continue to be low and were off 110% fourth quarter over fourth quarter from 549 sales in 2017 to 248 sales in 2018. That's a significant difference.
Rental sales were down 13% to 204 from 231.
Like 2018 it looks like 2019 will be another difficult year especially with the current turmoil in the stock market, Trump shenanigan politics and the forecast of more interest rate increases. But we will know more in a couple of months as to how the year will unfold.
If the economy turns to a more positive tone we could see a number of the baby boomers who have been sitting on the fence wondering whether to sell/cash out, come to market. Were that to happen we will have an onslaught of inventory and a buyer's market! And there are many buyer's waiting for more choice properties to hit the market.
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