I hope this email finds you well. The April Monthly Stats released from TRREB this week as pretty much as expected. The sales are down but prices are remaining constant. We are seeing a drop in showings and that many of those "holding offers" are not getting close to what they expected nor are they getting half as many as we were seeing in February and March. The simple reason for this is "Supply and Demand".... Listings are now coming out fast and furious. Everyone is trying to cash in their investment properties and or move further out so they can sell when the market is high. Please keep in mind if you are selling - you are also buying in this market. Buying is getting easier but not without struggles for some. It truly depends on what you are buying and where. It still appears Oshawa and Clarington are getting high numbers.
Pickering we are seeing properties over the $1M sitting a bit longer than before... but, yes I recently sold one and held offers and had 13 offers. It worked out exactly as we hoped for and my Sellers are thrilled. Most of it is presentation and marketing and then just hoping to appeal to the right group of buyers. Price also is a factor. If you price your home "too high" you will only sell everyone's house around you. Agents know which homes are prices high and will use them when showing homes to perspective buyers ... ALWAYS work with someone you trust. Always use someone local to the Durham market when buying. Out of Region agents do not have the same access to SOLDS and do not know the areas. It would be the same as me showing someone a house in Brampton... I don't know Brampton, I don't have access to the Brampton Board and I wouldn't do that. I would refer them to an agent I trust that works in Brampton. Then I would know my clients are being well taken care of.
As for offers, I get asked this all the time. What should I offer? I cannot give you a number. I can you the latest solds prices and advise you of the averages etc. but I cannot give you a number. Understand when in multiple offers, the buyers agent does not see all the offers. Only the Listing Agent and Seller sees all the offers. This is where it is important for you work to work local. Local agents know the values. They will advise you when to "rethink" this. Everyone's situation is different. Some buyers have sold a home in Toronto and have the $$$ to spend and they come here and purchase a home and blow everyone out of the water. It depends on the pool of buyers offering on that home and if that home has anything "special" to offer.
Right now with many working from home, distance doesn't seem to put people off. They are going further and further out for affordability but as the business start to re-open, is this distance going to be a factor when they are called back into the office setting or is "bricks and mortar" as we once knew it, soon going to be a thing of the past? That we are yet to see. Many businesses have found ways to cut down on office space with everyone working remotely... and maybe many will continue to do so. We have learned that big is not always better in this situation. The amount of local business that are suffering through this is horrendous. Will they be able to recover? We are yet to see but my guess is, even with government help, they are going to fail. You can't keep businesses closed down like this with no income and expect them to recover. It's too long. Its a fact many will face. Once that happens, I beleive we will see job losses and once the true effects of Covid take place, this will come to a screeching halt !!! That is my take on it anyway. LOL.
June 1st, the new "Stress Test" comes into effect. That will also take away a small bit of purchaser's buying power. So they will need to be approved on 5.25 instead of 4.75 if they are putting 20% down. Conventional mortgages only.
So here are some numbers :
In April we saw 13,663 home sales vs. 2,957 in April 2020 (keep in mind April 2020 was the first initial lockdown and everyone was extremely scared)
New Listings - April 2020 we saw 6,180 and in April 2021 we saw 20,825 - a whopping 237% increase in listings... so this is where we are starting to see huge supply.
Average Price - April 2020 approx 820 and in April 2020 approx. $1,090 - That's nuts... 33% increase over year - but keep in mind that is NOT a true comparison because most of April 2020 there were NO sales and that would skew the averages. Everyone needs to look at the full picture not just what the media presents.
I have attached the full report if you are interested. Take a peak. It's always interesting to see.
As always, I appreciate your referrals and your businesses. The calls and questions are always nice and please feel free to reach out if you have any real estate related questions, now or in the future. Your business matters to me.
Have a great Mother's Day weekend out there everyone. Stay safe and be well.
Your friend in Real Estate