The spring market seems to be in full swing, with a huge spike in month over month sales, likely fuelled by the hopes near future interest rate cuts.
Only time will tell if this is evidence of strength returning to the market, or seasonal spring market growth.
Year over year activity: Durham Region saw a 3% increase in average selling price, 36% new listings, 24% more homes sold comparing with February 2023.
Month over month: February closed with a total of 2.7% increase in selling price, 47% increase in new listings, and 38% more sales than in January.
TIME ON THE MARKET
Interestingly, the average time it takes for a property to sell firm has increased by 3 days comparing with February of 2023. This could be given to an increase in available inventory giving buyers more choice and possibly due to the unrealistic price expectations by some home sellers. Homes priced too high end up staying on the market longer. Another reason is an increase in condo properties across Durham Region – condo sales have longer time on market due to the extra time required for the review of the condo documents.
BIDDING WARS
Multiple offers are intensifying. While a lot more common in freehold market, even condo purchasers in Durham Region should prepare for competing with other buyers this spring.
The average list to sale price ratio in Durham Region in February was at 102%, meaning, on average properties sell for 2% more than the asking price. “On average” needs to be emphasized as for some properties it’s significantly higher and for others significantly less. The difference depends on the listing pricing strategy.
HOME SELLERS
The return of home buyers offers a more robust market and much more favourable selling conditions than we had seen last year. Proper preparation and marketing strategy will result in hassle free sales with a choice of competing offers. Average selling prices have increased by 147% in the last 10 years (since Feb 2014). It’s an excellent time anyone with equity who is ready to move up or cash out on their investment.
HOME BUYERS
For those shopping in a competitive market it’s important to view the asking price as a marketing tool, rather than an indication of value. Low “bait” price is meant to attract multiple buyers. Be prepared with a solid pre-approval, research on selling prices of similar properties, and avoid placing low bids driven by hopes. Low ball offers often end up only fuelling up the competition, driving up prices.
INTEREST RATES
At the latest announcement, The Bank of Canada decided to hold onto it’s current policy rate, resulting in status quo for variable rate mortgages. The next announcement is scheduled for April 10th.
With many rumours, hopes, and speculations on rate cuts this year, each announcement will no doubt be highly anticipated by many. What are your thoughts on the next BOC move? Reply to the email to let me know!