New Tecumseth Monthly Market Update - March, 2021

And I said January and February were going to be the peak of this crazy market, I was wrong!  These numbers for March are off the charts!  March 2021 saw another record high average sale price, just above the previous records from January and December.  Also, the number of local sales was also a record and double last months, which is an incredible turn around after months of low inventory.  The extremely strong Seller’s market continued and strengthened in March, being fueled by more inventory and very strong buying demand.  

There were 167(!) sales in March, almost double the 86 in February, up from the 70 in March 2020, and well above the 13-month average of 86 sales per month!  March is traditionally a busy month for sales and the start of the active ‘spring market”.  Its incredible to see such an increase in sales from February, especially when February doubled the sales from January!

Average sold price, $855k(!), is up significantly from March 2020, $643k, (+33% !), and above February 2021, $813k, and well above the increasing 13-month average of $736k.  Again, these are incredible price trends for a global pandemic.  But I am discouraged again to see another record setting month for average sale price because this growth is unsustainable.  Townhouse average sales prices, $703k (27 sales), was close to another record high, up significantly from last March 2020, $534k (+31%!), and well above the 13-month average of $612k.

Sale Price vs List Price ratio was 105.5%.  That was down from 107% for February.  That means, sales in March were selling for an average of 5.5% OVER asking price!  Which means on the average sale price of $855k each sale got approximately $47,000 over asking on average.

Active Listings, 73, is just below last month’s 74, below last years 120, and also below the decreasing 13-month average of 95.  This 74 Active Listings is a very welcome change from the near historically low number from the previous few months.  Active Listings is a measurement of the number of homes available at the end of the month.

Months of Inventory, 0.4, is well below last years 1.7, and below last months 0.9, and less than the decreasing 13-month average of 1.5.  0.4 may be the lowest measure I have seen.  This is the seventh month of the last eight 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 down to an average of 9 days!  That is lowest number I can ever recall!  And I said the same thing last month at 10 days! T his is a testament to the sales strategy widely used in March of holding offer dates a few days after listing a property.  And it was a very successful strategy.  This is another illustration of March’s very strong buying demand; even with pandemic pressures, almost all homes are selling at very fast rates.

Consecutive record or near record average sale prices and very fast sales are great for home sellers, but buyers have not had it easy over the last many months.  I am concerned because these record figures are unsustainable.  The questions is now: what’s next?  We didn’t think things could get any more out of control than January and February, but they did!   What effect will the dire third wave of Covid 19 have?

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.  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- March, 2021

Year- Over- Year- March, 2021

13 Month Update- March, 2021