Sales in Durham Region for the month of April were 17% lower than the same month last year while inventory, the achilles heel of our market, was down 47% for the same time period. These two percentages tell the story. I could seriously end this market update right here with these two numbers. But I won’t. People tell me that prices seem to be going up. They’re right. It’s more tempered than it was a year ago, but each month this year there’s been an incremental increase in the
Average Sold Price.
Jan. $886,849
Feb. $888,448
Mar. $926,142
Apr. $956,240
Average Sold Price.
Jan. $886,849
Feb. $888,448
Mar. $926,142
Apr. $956,240
The increase in Average Price from Jan. to April is 7.8%. Even with higher financing costs, the rather substantial decrease in available homes for sale is pushing prices higher. Realtors are back to last year’s strategy of under-pricing the home to get more foot traffic while holding offers to get more competition. Sellers are benefitting. The Average Sales to New Listing percentage rang in at 73.8%; firmly a Seller’s Market. The Sale Price to List Price percentage increased from 103% in March to 107% in April. Is this a good time to sell your home? Absolutely. We’re currently sitting at 1 month of inventory in the Region however areas like Whitby, Ajax and Clarington are actually below a month. Whitby sits at just over 2 weeks of inventory. Why are buyers buying? Price. Prices in April were 11% lower than in April of 2022.
The Average Price in April 2022 across Durham Region was $1,075,332 and this month it was $956,240. This has revigorated some of the buyer pool that has been on the sidelines. Back to the inventory question. In April of 2022 there were 2,338 new listings in Durham compared to just 1,223 April, 2023. The number of new listings, year to date, is down 41% from last year at this time. Going forward, there may be some softening in the summer months due to seasonality however it’s not a guarantee with this awkward inventory situation.
The Feds predict an increase in the unemployment rate and a softening in output plus the potential for a soft recession leading into 2024. It’s anybody’s guess. Don’t try to time your real estate activity based on projections and headlines. Keep it simple and see if pricing and market conditions work for your particular situation. If so, take the leap. It’s a great time for move-up buyers, lateral buyers and sellers.
If you’d like to review your situation, please reach out to us at: team@williamsandfollows.com or
call directly at 905-930-9250.
