MARKET UPDATE From Frenzy to Balance


From Frenzy to Balance

It took a while for many Sellers to realize the high demand in York region was serious business.  Reviewing the first quarter of 2016 in Aurora when average home values were $850,055 that was absolutely fantastic growth for the time.  Still many Seller’s hesitated to place their home for sale and Buyer demand escalated further as did the average home prices by over 40 per cent to $1,190,850 by first quarter of 2017 making for some very pleased Seller’s who sold with great results.  

In the first three months of the 2017 there were 420 homes sold, that’s 13 per cent more homes sold than there were homes on the market in the same time frame of 2016; a 50 per cent rise in home sales from the year prior.  With 762 homes placed for sale during that time an increase of over 104 per cent from 2016.  The average days on market decreased in 2017 by 35 per cent taking on average 11 days for homes to sell and when they did Seller’s on average accepted 11 per cent higher offers than their asking sale price.  There were also 32 per cent more homes still available for sale by the end of March 2017. 

By the time April ended more homes remained for sale due to higher supply and that trend  continued through May.  Since the Easter Break it seems no matter where you go you can’t escape seeing a multitude of sale signs, open house signs and mail about real estate.

There has been a shift in the real estate market from a high demand Seller’s market with low supply to a balanced new reality of more market supply of all home descriptions coupled with demand. On a daily basis REALTORS® are seeing more homes with price reductions, more homes being taken off the market to be reintroduced at a later date or reintroduced at a new lower price.  The latest trend of a balanced market will be illustrated clearly in detail once the 2nd quarter statistics are revealed in summer. 

With greater selection of homes for sale Buyer’s shift their mindsets to be more selective, with more caution taken and conditions added and negotiation on pricing in their offers.  There are less offers being delayed on homes for sale and home values remain high or at least higher than in 2016 but growth in average pricing stabilizes.  More time for investigation before Buyer action takes place to be sure shoppers feel confident in the value of the home for sale.

At the time this article was written May 2017 Toronto Real Estate Board Statistics were not released.

-written by Connie Power  

Connie Power is a Real Estate Sales Representative CNE® SRS® ABR® SRES®, Mentors and Develops New Real Estate Sales Representatives for RE/MAX Hallmark York Group Realty Ltd.,  Brokerage serving York region and beyond. 

EmPOWERing YOU in Real ESTATE, Call Connie today to make an appointment to discuss your next move at (905) 726-0856.

*The statistics provided herein were obtained from the Toronto Real Estate Board; Aurora Community Breakdown; Summary of Existing Home Transactions; All Home Types, First Quarter of 2016 and 2017.

***Not intended to solicit those currently under a real estate contract.