The 2021 Market in Durham Region
Tags: Durham Region, market update, 2021, home prices
Well, what a year it’s been already and it’s only the end of April! You may have noticed that sale prices are soaring, homes are selling for well above list price, and to be a buyer in this market is tough unless you are a downsizer. Having to bid against 5-10 other buyers (or more) to get a property in our region takes industriousness, patience, and a commitment to look and buy within your means. For example, buyers looking to spend about $900k means they need to be looking at homes priced around $700k-$750k depending on where in the region they are looking, as the average above list sale prices in some areas exceed $150k.
If you take a look at the graph below demonstrating the average sale prices per month from 2016-2021, the turquoise line represents the buoyed sale prices that have dominated the last four months in Durham. It’s not that difficult to appreciate that while we eclipsed the 2017 average sale price pinnacle in July of 2020, sale prices continued to rise and seem to have set a new bar, literally, and figuratively.
We are experiencing a pandemic that is unprecedented. Simultaneously, we are experiencing the most inflated market in Durham to date, which is also unprecedented. The only time in the recent past that came close was the seller’s market of 2017 (red line above). What is very unique about 2021 in direct comparison is that we don’t just currently have a supply problem (not enough people listing their homes happens during global pandemics), we have a ‘there are too many buyers’ problem amidst record low interest rates. What this means is that the consumption rate, or the rate at which homes are listing and quickly selling almost immediately thereafter is high because the number of buyers is also high at the same time that supply is low. Homes are being ‘gobbled up’ so to speak.
So just as fast as homes are listing, they are successfully selling because more and more buyers are looking to spread out, are interested in acreage, and maybe aren’t tied to Toronto workplaces 5 days a week anymore post-pandemic.
Easy to list, right? ‘I’m going to get lots of money no matter who I hire.’ Wrong. There has never been a better time to ensure that you minimize your risk at every turn. If you want to Hire Realtor A instead of Realtor B because you can save $5000 on commission that may have you potentially lose $50k as a consequence in a seller’s market. That is how crucial who you hire matters. Smart buyers get representation. Think you can look up a property on Realtor.ca, call the listing agent and go to see it on day 2 on the market? It will likely already be sold to buyers that had the good sense to hire a professional to guide them, have been looking in earnest for 3 months, potentially lost out on a few properties they tendered offers on already, and have now anted up what is necessary to secure the home of their dreams for themselves.
Feel free to reach out to ascertain how we are conducting real estate transactions SAFELY in the era of Covid.