Market Report - May 2021
The historical trend report for York Region dramatically shows the recent increase in property values despite the shut-down of other aspects of the economy due to COVID-19. The temporary downturn in prices at the beginning of the pandemic has been regained, plus more! We have surpassed the peak of the 2017 seller’s market by a fair proportion.
The charts below show the number of sales, the average price which are familiar measures of market conditions. The forecasted trend continues to be modest gains in prices through all market segments, with detached properties continuing to see the highest gains, followed by townhouses and semi-detached. The condo market shows much more volatility in both sale price and number of transactions, although the overall forecast remains bright as lower interest rates continue to bring first-time buyers into the marketplace.
Also included are lesser-known statistics of “Months of Inventory” and “Average Days on Market.” MOI indicates whether the market favours sellers, buyers or is balanced. Generally, it is a seller’s market if there are less than four months of inventory, a balanced market if there are four to six MOI, and a buyer’s market if there are six or more months of inventory. With fewer than two months of inventory of detached homes, it is a strong seller’s market currently.
DOM indicates the average number of days it takes for all properties listed to sell. The huge decrease in the time to sell is suggestive of the recent Realtor* practice of encouraging sellers to refuse to accept Offers until a date (usually 7 to 10 days after first hitting the MLS*). All the Offers are then negotiated on that one day, usually resulting in a firm sale (ie: without conditions) and an above-list selling price. Noteworthy, however, is the more recent uptick in Days on Market as some listing agents resume the regular practice of accepting Offers at any time in response to buyer’s refusing to make Offers on properties that are likely to sell in so-called “bidding wars.” In an “Offers anytime” marketplace, properties often take longer to sell. Still, detached homes are selling in an average of under two weeks!
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