By: Michael Tough Realty Group

July 2019 Market Update

Tags: #Aurorarealestate #Newmarketrealestate #Eastgwillimburyrealestate #Bradfordrealestate #Innisfilrealestate #Alconarealestate #Michaeltoughrealtygroup #Michaeltough

 

Happy Summer. As we dip into a seasonally slower time of the year for Real Estate, I wanted to explore the lower than normal activity we are seeing in the market.
 
One of the things that dictates price is the inventory level and the choices that buyers have when making a purchasing decision. Numerous homes available allows the buyers to be pickier in their selection. And negatively, too many homes create ‘analysis paralysis’.
 
Here is the scenario we see playing out in our current market. Realtor shows our listing. We call for feedback. They advise us buyer likes the home but wants to see more. The next morning, 10 more homes show up in that buyer’s auto home search and off they and their Realtor go to look at several more. Days and weeks of this creates enormous confusion. Suddenly, the home the buyer liked a week ago is a tree lost in the forest. And the cycle seems to create an endless loop.
 
So, how has inventory, and more specifically absorption rate, impacted our market over the past couple of months at the very peak of the listing season?
 
The absorption rate of homes is determined by the ratio of homes listed to homes sold. By calculating this ratio, we can determine the number of months of inventory we have. For example, if 100 homes are active in any given month and 50 of those homes sell, we have a two month supply of homes – meaning that if not one more home was listed, it would take 2 months to sell everything on the market.
 
Let’s look at each trading community we work in and the respective months’ supply of homes:
 
AURORA

TYPE/MONTH May June
  Active Sold Month’s Supply Active Sold Month’s Supply
Detached 258 63 4.1 240 65 3.4
Semi-Detached 9 8 1 12 3 4
Townhome 36 26 1.4 31 12 2.6

  
NEWMARKET
 
TYPE/MONTH May June
  Active Sold Month’s Supply Active Sold Month’s Supply
Detached 309 91 3.4 296 87 3.4
Semi-Detached 23 13 1.8 25 14 1.8
Townhome 36 26 1.4 31 12 2.6
 
 
EAST GWILLIMBURY
 
TYPE/MONTH May June
  Active Sold Month’s Supply Active Sold Month’s Supply
Detached 222 44 5.0 296 41 4.9
Semi-Detached 11 5 2.2 6 4 1.5
Townhome 25 15 1.7 12 21 0.6
 
 
BRADFORD
 
TYPE/MONTH May June
  Active Sold Month’s Supply Active Sold Month’s Supply
Detached 180 50 3.6 177 57 3.1
Semi-Detached 10 4 2.5 10 3 3.3
Townhome 11 7 1.6 8 6 1.3
 
 
INNISFIL
 
TYPE/MONTH May June
  Active Sold Month’s Supply Active Sold Month’s Supply
Detached 386 64 6 400 63 6.4
Townhome 41 9 4.6 42 9 4.7

 

Bottom line – if you own a townhome right now and you are thinking of moving up, your odds of selling quickly and for top dollar are pretty high in most markets; and your ability to find and secure a detached home at a great price is pretty darned good!

Alternatively, if you own a larger detached home, your motivation to sell needs to be pretty solid and you absolutely must be razor sharp on your price. With months and months supply of detached homes, the buyers have tons to choose from and more coming out each day.

As always, interpreting the data in relationship to your goals is likely the most significant value we can bring to our clients. We look forward to the opportunity of meeting with you and discussing your next steps.
 
Enjoy Summer!


 CURRENT LISTINGS

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259 Eric Street, Stayner
$450,000
3 Bedrooms, 2 Bathrooms, Detached Sidesplit - 4




198 Downey Circle, Aurora
$675,000
3 Bedrooms, 3 Bathrooms, Townhouse 2-Storey




60 Birkshire Drive, Aurora
$965,000
4 Bedrooms, 3 Bathrooms, Detached 2-Storey



EXCLUSIVE 



140 Prospect Street, Newmarket



273 Kirkvalley Crescent, Aurora
 

WHAT'S HAPPENING IN YOUR COMMUNITY?

  AURORA                         INNISFIL                     NEWMARKET               EAST GWILLIMBURY                  BRADFORD  

                                                      


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