What a difference a month makes!
Durham Region's real estate market made an epic rebound from the dramatic drop in volume we experienced in April due to the drastic changes COVID-19 brought to the market.
Check out the Daily Market Update.
New listings did not keep up with the increase in sales volume, resulting in a drop in inventory. This created more demand for the remaining listings, helping to drive a price recovery to near-highs for the year.
Prices in Durham increased by 4.7% since May 2019 and jumped 6.4% since April 2020.
The latest market statistics show the average Durham property at $651,590 - up from last month's 612,563 by $39,027 (+6.4%).
Active listings in Durham Region were 1149 at the time this report was compiled. That is a 50.2% decrease from last year and a 2.9% decrease from March.
Currently, there are 1.7 months of inventory (trend figure, per TRREB), once again increasing buyer competition - although less so on properties at the high end of the price spectrum.
Sales volume in Durham Region decreased 34.5% from last year with 770 units sold versus 1176 last May. It was up from April by 50.1%.
What is significant is the jump in volume from April. COVID-19 restrictions on real estate business activities have only just started to ease, with offices opening, but the change in monthly sales shows a strong pent-up demand.
The time a property takes to sell is called DOM or days on market. It was 22 in May, which should come down in June as we see listings moving much faster in recent weeks.
Another indicator of demand is sale price compared to list price. It was 99% in Durham in May, 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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