July Market Update?
The market in Durham Region continued to cool in July as vacation time and higher borrowing costs combined in creating more balanced market conditions. The entrance fee for First Time Buyers, however, remains prohibitive to too many people. We receive a lot of requests to view homes in the 300K - 500K in the Durham Region and frankly, it’s impossible to find decent housing below the half-million dollar mark. I think my colleagues in the industry would agree that while we’ve had a market correction, we certainly haven’t had a crash.
Sales for the month of July came in at 700 units, a decrease of 36.5% over July of 2021 and a drop of 27.6% from June. New listings coming onto the market also dropped by 26% from the previous month of June. Depending on how events unfold over the next month or two, the contraction of existing inventory could again lead to price pressures in the fall market, should buyers return from the sidelines.
Months of Inventory increased across the Region, from 1.5 months in June to 1.9 months in July while the Average Days on Market increased 25% from the previous month, to 15 days on average. That’s more than double the 7 Days on Market recorded back in February.
The Sales To New Listings Ratio clocked in at 47.9%, comfortably in a Balanced Market range but a far cry from the 86.3% a year ago. The Sale Price to List Price Ratio came in at 101% which is the lowest I’ve seen in a couple of years, even though it still tops 100%. Last month that ratio was 104% and in February, at the height of the market, it registered a whopping 129%!
The Average Sale Price across the Region was $901,412, down 7% from June’s Average Sale Price of $969,424. Some of this drop is attributed to borrowing costs however it’s also due to “seasonality.” Looking at historical data is easy to spot the best months to purchase a home; July/August and December/January in most cases.
With so many people going online to begin their home search, the first stop any buyer should make is with a lender, whether it be your own bank or a mortgage broker. Do not even waste the time until you determine whether or not you can meet down-payment requirements, stress-test qualifications and credit score, debt level, and employment qualifications. Once these obstacles have been overcome, you’ll then know what you can afford. If you can not qualify presently, your lender can put you on the right path to get into that position, but it all starts with this important first step.
We can help. It’s easy to reach us and really, it’s what we do! The first step is determining your financing. There are no costs or obligations to you to get this information! Call us today! 905-442-5847.