May 2022 Market Update
The real estate market in Durham Region continued it’s transition from a historically strong Seller’s market to a more balanced market; good news for Buyers who had been regulated to the side-lines during the days of fierce competition. Supply and demand is the name of the game and the softening in prices can be attributed to an
increase of homes being listed for sale (supply) and rising interest rates slowly tempering (demand).
There were 1,025 properties sold in Durham in May; down 5.9% from April and down 34.9% from May of 2021. The Average Sold Price dipped below 1 million dollars for the first time in a while, down 7.4% from $1,075,332 in April to $995,668 in May. This caps one quarter of price decreases in each of March, April and May. The trend has also caused some buyers to sit on the sidelines, hoping to time the market bottom before they jump in. Unfortunately, that strategy is going to be tempered by rising costs of borrowing. Even though we are still seeing competition and numerous homes selling above the asking price, the Sales to New Listings ratio is strongly in balanced market territory at 45.3%.
A balanced market is when this ratio is between 40% & 60%. Another key metric, Sale Price to List Price, came in at 108% so, on average, Sellers got 8% over their asking price. At the height of the market this ratio was in the range of 138% - 140% as a comparison and, in many cases, it was higher. Months of Inventory has also increased giving Buyers more choice, and Sellers, more time on the market. Relative to this development, the strategy of pricing far below market value and holding offers for offer day is beginning to dissipate in certain price ranges. Months of Inventory increased in May to 1.4 months or roughly, 6 weeks. In the heyday, this number was at 5 days.
A client recently asked what had change in the market. I replied “absloutely nothing.” What I meant was nothing had changed in how we prepared, listed, marketed and negotiated our properties. At the height we still put a ton of effort into presentation which creates desirability, we marketed the kajeebees out of our properties and we negotiated relentlessly. We still do that with great success. Nothing has changed. A strong foundation doesn’t sway, and that’s what we bring to your table.
To meet us at Coffe Time for a chat, just email, text, call or carrier pigeon to
team@williamsandfollows.com or call 905-442-5847! See you soon!
The real estate market in Durham Region continued it’s transition from a historically strong Seller’s market to a more balanced market; good news for Buyers who had been regulated to the side-lines during the days of fierce competition. Supply and demand is the name of the game and the softening in prices can be attributed to an
increase of homes being listed for sale (supply) and rising interest rates slowly tempering (demand).
There were 1,025 properties sold in Durham in May; down 5.9% from April and down 34.9% from May of 2021. The Average Sold Price dipped below 1 million dollars for the first time in a while, down 7.4% from $1,075,332 in April to $995,668 in May. This caps one quarter of price decreases in each of March, April and May. The trend has also caused some buyers to sit on the sidelines, hoping to time the market bottom before they jump in. Unfortunately, that strategy is going to be tempered by rising costs of borrowing. Even though we are still seeing competition and numerous homes selling above the asking price, the Sales to New Listings ratio is strongly in balanced market territory at 45.3%.
A balanced market is when this ratio is between 40% & 60%. Another key metric, Sale Price to List Price, came in at 108% so, on average, Sellers got 8% over their asking price. At the height of the market this ratio was in the range of 138% - 140% as a comparison and, in many cases, it was higher. Months of Inventory has also increased giving Buyers more choice, and Sellers, more time on the market. Relative to this development, the strategy of pricing far below market value and holding offers for offer day is beginning to dissipate in certain price ranges. Months of Inventory increased in May to 1.4 months or roughly, 6 weeks. In the heyday, this number was at 5 days.
A client recently asked what had change in the market. I replied “absloutely nothing.” What I meant was nothing had changed in how we prepared, listed, marketed and negotiated our properties. At the height we still put a ton of effort into presentation which creates desirability, we marketed the kajeebees out of our properties and we negotiated relentlessly. We still do that with great success. Nothing has changed. A strong foundation doesn’t sway, and that’s what we bring to your table.
To meet us at Coffe Time for a chat, just email, text, call or carrier pigeon to
team@williamsandfollows.com or call 905-442-5847! See you soon!
