Spring Real Estate Update April 2018
We’re coming close to the month where the massive drop in sales being reported will very likely stop. The end of last April is when the Fair Housing Plan took effect so it’s no surprise that sales in April YoY (year-over-year) are down 32.1%. I think there will be there will be another drop in May YoY but I expect June to be when sales will have finally increased YoY.
Yes, overall sales reported in the TREB system are down from last year, but they have trended up every month of 2018. Now that the warm weather is finally here, I am predicting the buyers to come out in droves. With the implementation of the new Stress Test, affordable homes are being scooped up pretty quickly and the more expensive homes have been taking much longer to sell. This is having quite an interesting affect on pricing.
Since the majority of people have been affected by a drop in affordability with the Stress Test, more buyers are vying for condos, towns and semis.
There used to be more of a distinction between prices of Towns and Semis but they now seem similar depending on the age and location. When factoring in condo fees, condo towns are very close behind. There is still a separation between those and detached but it seems that detached homes have been still trending down in price as the demand has still not returned where it was last year.
- In Brampton, detached homes in April averaged $823,963, Semis $632,762 and Towns $613,585.
- In Orangeville, detached averaged $627,951 in April. Semis $433,983 and towns $477,429
Days on Market
In Peel Region, the average days on market for detached homes is 21 days whereas Townhouses, 18. Links average 11 days and Semis are scooped up in 15.
In Orangeville, the average DOM for detached is 19, Link 15 DOM, Semi 11 DOM and Townhouses just 10.
Just for comparison sake, in March 2017, the month before the peak in a crazy sellers market, the average DOM for all house types in all of the TREB area was 10. Remember though, the numbers above were only for April 2018.
I knew this year would be an interesting one. The first quarter is over and we're about to enter the busy season. I see the next month trending the same way and likely continuing throughout the summer. The only big question that remains is what will happen with the June Provincial election and what affect will it have on the market. Regardless of which party wins, the shortage of affordable housing will be a topic of interest. I just hope whatever happens, more thought and preparation goes into it than the massive surprise last year.
Thanks for reading! Enjoy the weather and if you're thinking about making a move within the Orangeville area, including Caledon, Mono, East Garafraxa, Brampton, Shelburne, Grand Valley and Amaranth, don't hesitate to call, text or email anytime! I'm never too busy for referrals!