Real Estate News

New Tecumseth Monthly Market Update - April, 2021

New Tecumseth Monthly Market Update - April, 2021

April 2021 was another very strong month for the local market with better
than average measurements in all metrics.  April was again high month for
average sale prices, just below the other record months this year.  Also,
the number of local sales was high in the month, and one of the highest of
the last 13 months.  The strong Seller's market continued in April, being
fueled by more inventory and very strong buying demand. 

There were 118 sales in April, down significantly from 167 in March, above
the 13-month average of 90 sales per month, but PLUS +350% from April 2020's
26 sale (the depths of the first wave and lockdown).  April is traditionally
a busy month for sales as its part of the active 'spring market".  Its great
to see April was such a dynamic month, but I'm glad to see its down from the
crazy market in March.

Average sold price, $822k, is up significantly from April 2020, $622k, (+32%
!), and just below March 2021, $855k (record high), and well above the
increasing 13-month average of $750k.  Again, these are incredible price
trends for a global pandemic.  But I am relieved to see April was not
another record setting month for average sale price because the recent
growth is unsustainable.  Townhouse average sales prices, $701k (20 sales),
is less than the last two months but still the third highest recorded month,
and well above the 13-month average of $626k.  There were zero townhouse
sales in April 2020, so nothing to compare to this time last year.

Sale Price vs List Price ratio was 102.5%.  That was down from the last two
months of 107% for February and 105% in March.  That means, home sales in
April were selling for an average of 2.5% over asking price.  Which means on
the average sale price of $822k each sale got approximately $20,000 over
asking on average.

Active Listings, 96, is above last month's 73, below last Aprils' 124, but
just above the 13-month average of 94.  This 96 Active Listings is a another
very welcome change from the historically low numbers from the beginning few
months of the year.  Active Listings is a measurement of the number of homes
available at the end of the month.

Months of Inventory, 0.8, is well below last years 3.3, above last months
0.4, and less than the decreasing 13-month average of 1.4.  0.8 is a relief
from last months record low 0.4.  This is the eighth month of the last nine
with MOI of less than 1.  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 to an average of 11 days.  That is the third lowest
number ever perhaps!  This number is rising because more homes are available
now so some of the less desirable homes are now sitting longer because
buyers finally have some choice. 

Decreases from consecutive record or near record average sale prices is a
great change from the overheated market we have had recently. I am hopefully
that these trends will continue and the market will be coming closer to
balanced.  The questions is always: what's next?  It's a reprieve to see
these decreases, but will they continue?

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 easier with more inventory coming available.  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- April, 2021

Year- Over- Year- April, 2021

13 Month Update- April, 2021

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Brian Lafazanos
Brian Lafazanos
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