As we move deeper into the Spring market, we can see some trends emerging.
Single family home sales are relatively strong in terms of the volume of sales when compared to the last couple of years. But, much softer compared to pre-2008 levels. This is most likely the new normal – lower sales volume as the decreased level of real estate speculation continues. Even though volume is now similar to last years levels, prices are down about 5%. We are definitely seeing this play out as homes that sold last year, and which are on the market again now, are usually selling for less. Inventory is not quite as high as last year, but it is still climbing and could definitely touch those levels.
The condo market is facing a similar set of challenges. Volume is just fine, but to sell those units, sellers need to be more aggressive with their pricing than they had to be just a year ago.
One very interesting statistic to point out is that the number of days that it takes to sell a property is very short, and shrinking, while the average number of days on market for unsold properties is growing. It is clear that there is a disconnect between most sellers and buyers. Those sellers that price their homes properly are finding lots of eager buyers. But, with inventory levels so high, optimistically priced home are being passed by and are just sitting on the market. If your home has been on the market for over 30 days you need to have a conversation with your Realtor, and with yourself. You may have a pricing problem, that if not corrected, will likely cause your home to sell at less than market value, if it sells at all. In an unstable and challenging market like this, it is more important than ever to get advice from a knowledgeable, trustworthy expert.
Is there a portion of the market that is hot? The answer is yes, and it is the new home market. The $10,000 tax credit for first time home buyers combined with the increased HST rebate for higher end properties has convinced a lot of buyers that a newly built home is the way to go. I can’t speak for all new home projects, but our results at www.HomesAtHazelwood.ca, www.TheSummitAtThetis.com, and www.RainbowHill.ca show that there seems to be demand for well priced new properties.
Over the last 30 days, 303 single family houses were sold, up by 6 houses from last week. The median price is down $7,000 to $562,000. The average house was on the market for 35 days.
In the same time period, 172 condos were sold, down by 1 condos from last week. The median price is down $5,000 to $275,000. The average condo was on the market for 38 days.
There are now 2,182 houses for sale, up by 59 from last week. Condo inventory has risen by 17 to 992 suites.