New Tecumseth Monthly Market Update - June, 2021
New Tecumseth Monthly Market Update - June, 2021
June 2021 was another strong month for the local market with further increases in average sale prices, low inventory, and most homes selling for over asking price and quickly. What I thought a couple months ago was a cresting of the peak of this market or a plateau was incorrect. The hot, sellers’ market is just continuing on because of continuingly low inventory and strong demand.
The number
of monthly sales declined in June to 104, which is just about equal to the 13
month average.
Average sold
price is another incredible, record high and basically at $900k! Detached
average sale price is close to $1M(!) and townhouse prices are up again
to an average of $700k.
Sale Price
vs List Price ratio was 103.4%. That means all home sales in June were
selling for an average of 3.6% over asking price. Again, a function of
low inventory and strong demand. But this is also a result of some
sellers’ strategy to list for below “market value” and sell for more.
Active
Listings, 78, is remaining steady around 80 for the last few months, but it is
still not enough to satisfy this high demand. Active Listings is a
measurement of the number of homes available at the end of the month.
Months of
Inventory, 0.8, is just up from last month and continues to be very low and
below 1.0. Months of Inventory refers to the number of months it would
take for the current inventory of homes on the market to sell given the current
sales pace. Values below 4.0 are said to be a seller’s market and means
prices should be rising, and they certainly have been!
Days on
Market are up slightly to an average of 14 days. This is another
illustration of the hot market, as any homes come on the market, most sell very
quickly.
In summary,
this hot Sellers’ market is continuing with no significant change in sight, I
believe. The very low inventory will be difficult to correct unless a
rush a people decide to sell. But is unlikely because this market is too
expensive for most people to buy and sell in. Demand also continues on
strong. That may be reducing as the reality of buyer, seller and realtor
fatigue continues, and as peoples focus shift as the world begins to open post
pandemic. But interest rates are low and will likely continue to be for
another year. The questions as always: what’s next?
If you’ve
been considering selling, don’t delay, prices have never been higher. If
you have been trying to buy or waiting to buy, things appear to be getting
slightly easier with steady inventory coming available and demand decreasing a
little. If you’re buying for the long term, you may be buying at a high
point, but over the long run it won’t matter. If you’re planning on
buying and selling again soon i.e. flipping, now is a risky time to buy.
I have been
tracking and sharing weekly sales statistic on my social media and blog because
things are changing so quickly.
Stay safe
and be well everyone.
Weekly Snapshot- June, 2021
Year- Over- Year- June, 2021
13 Month Update- June, 2021