MARCH MARKET WATCH 2022
How interesting it is to watch the numbers pivot from, what has been, the never-ending status quo of
increasing prices and competition for homes! Just as we’re starting to hear about a market “shift,” so do the
underlying numbers reflect that fact. This particular shift isn’t quite as fast (overnight) as it was in 2017 when
government intervened with the stress test but it has occurred, primarily as an organic event, over the past 2-
3 weeks.
Sales were up, from 1,125 units in February to 1,390 in March BUT, average price declined about 6.5%, from
$1,228,900 to $1,148,685 in March. This is the first decline we’ve seen in a while but to lend some
perspective, that average price is still higher by 27.4% from March of 2021.
Here’s the meat of it, however. New listings increased by a whopping 53% in March over February. Sellers all
had the same idea, at the same time. This is the one major factor that eased the never-ending pressure on
home buyers and it was completely organic, not government induced. Buyers had more homes to choose from
and in many cases, did not experience the same kind of pressure from other buyers as they have over the past
year.
So what did we experience in the trenches? Some properties did not receive any offers on offer day, while
others received fewer offers than in prior months. We saw more listing terminations/relists and more price
changes. We also saw, for the first time in ages, offers with conditions in them. In fact, many of our newer
agents have never dealt with conditions and had to scramble with their mentors and brokers to learn how to
deal with them. Things continue to shift as I write this and it will be interesting to see if the one, last vestige of
our heated markets changes, and that is the practice of pricing way below market value to encourage foot
traffic. At this point Buyers seem genuinely exhausted competing with each other and bidding way over the
list price.
Keeping in mind, we are still seeing plenty of multiple offers and strong competition for some properties;
especially those in the lower price ranges and those in areas where comparable listings are in short supply.
The market is still in strong, seller territory with a Sales to New Listing Ratio of 78.4%, though that dipped
slightly from 80.6% in February.
The number of Active Listings also increase from February to March, from 605 to 978, an increase of 61.6%.
This increase, along with the 53% increase in New Listings in March over February explains the changes in
Buyer behavior. The Average Sale Price to Listing Price also decreased from 129% in February to 123% in
March, reflecting less competition amongst Buyers.
With all the movement in markets, it’s even more critical to drill down as far as possible when analyzing your
home’s potential value. Location, type of home, price range, upgrades, show ability, local market activity as
well as the broader community market activity all need to be taken into account when analyzing a home’s
potential in a changing market.
If you need information and expertise, please call us at 905-442-5847 direct and we’ll be happy to schedule a
consultation!
How interesting it is to watch the numbers pivot from, what has been, the never-ending status quo of
increasing prices and competition for homes! Just as we’re starting to hear about a market “shift,” so do the
underlying numbers reflect that fact. This particular shift isn’t quite as fast (overnight) as it was in 2017 when
government intervened with the stress test but it has occurred, primarily as an organic event, over the past 2-
3 weeks.
Sales were up, from 1,125 units in February to 1,390 in March BUT, average price declined about 6.5%, from
$1,228,900 to $1,148,685 in March. This is the first decline we’ve seen in a while but to lend some
perspective, that average price is still higher by 27.4% from March of 2021.
Here’s the meat of it, however. New listings increased by a whopping 53% in March over February. Sellers all
had the same idea, at the same time. This is the one major factor that eased the never-ending pressure on
home buyers and it was completely organic, not government induced. Buyers had more homes to choose from
and in many cases, did not experience the same kind of pressure from other buyers as they have over the past
year.
So what did we experience in the trenches? Some properties did not receive any offers on offer day, while
others received fewer offers than in prior months. We saw more listing terminations/relists and more price
changes. We also saw, for the first time in ages, offers with conditions in them. In fact, many of our newer
agents have never dealt with conditions and had to scramble with their mentors and brokers to learn how to
deal with them. Things continue to shift as I write this and it will be interesting to see if the one, last vestige of
our heated markets changes, and that is the practice of pricing way below market value to encourage foot
traffic. At this point Buyers seem genuinely exhausted competing with each other and bidding way over the
list price.
Keeping in mind, we are still seeing plenty of multiple offers and strong competition for some properties;
especially those in the lower price ranges and those in areas where comparable listings are in short supply.
The market is still in strong, seller territory with a Sales to New Listing Ratio of 78.4%, though that dipped
slightly from 80.6% in February.
The number of Active Listings also increase from February to March, from 605 to 978, an increase of 61.6%.
This increase, along with the 53% increase in New Listings in March over February explains the changes in
Buyer behavior. The Average Sale Price to Listing Price also decreased from 129% in February to 123% in
March, reflecting less competition amongst Buyers.
With all the movement in markets, it’s even more critical to drill down as far as possible when analyzing your
home’s potential value. Location, type of home, price range, upgrades, show ability, local market activity as
well as the broader community market activity all need to be taken into account when analyzing a home’s
potential in a changing market.
If you need information and expertise, please call us at 905-442-5847 direct and we’ll be happy to schedule a
consultation!
