Latest update - Sep 18, 2020 at 9:00 am
The real estate market in Durham Region is still on fire, with low inventory and prices rising above all-time record levels set last month.
We are now seeing a strong surge in prices from lows experienced during the COVID-19 economic shutdown. Sales volume has eased slightly from record levels in July, though it is still much higher than what we experienced in April and May,
Supply is very tight with 0.9 months of inventory (MOI) for the region, with those areas in south Durham at the lowest levels. (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 738,007 over Durham Region, with the average property selling at 103.2% of list price (SP/LP). South Durham areas showed the highest ratios. This is a 4.0% increase from last month and a 20.2% increase from last year.
The rise in average prices reflects a higher number of properties selling at higher price points, combined with multiple offer situations at low and mid-range price points. If you look at the selling price to list price ratios in the above chart, most communities are showing sales at levels above asking.
This may also be indicative of stronger buyer activity and competition as COVID-19 restrictions continue to relax.
Higher priced homes (over 800,000) are now selling faster and with more volume (218 units, 18.0 DOM, 101.2% SP/LP), as families looking for higher-priced detached homes have now become active.
Most of the ones that are at the lower end of the price curve (under 800,000) are selling for much more than asking (481 units, 12.0 DOM, 104.7% SP/LP), indicating that there still is very strong demand out there.
Days on market (DOM) averaged 13.9 days. This figure has been easing higher as we head into cooler weather.
Inventory levels are much lower now compared to late March and April when increases were indicative of the slowdown in activity due to COVID-19 mitigation efforts.
Pace of sales was at 46.6 units per day - down 8.7% from last month and up 38.5% from the same period last year.
Buyers will now find multiple offer scenarios increasingly common right now, at least in south Durham communities and low to mid-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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* - shading in the top chart signifies buyer or seller leaning stats - red is seller, blue is buyer with more intense shading signifying stronger impact.
Statistics are compiled from TRREB MLS® system, and may change as more sales are reported, errors corrected and deals that do not close are removed.