Prices for Detached Homes in Ajax, Ontario, for October 2014
Real estate market data for Ajax, Ontario, for October, 2014 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Ajax Home Prices for Detached Homes
Some points of Interest:
ü The average price, for detached homes in Ajax in October 2014, increased from $451,399 in October 2013 to $484,891 in October 2014 – an increase of $33,492 = 7.42%
ü The median price, for detached homes in Ajax in October 2014, increased from $435,000 in October 2013 to $470,000 in October 2014 – an increase of $35,000 = 8.05%
ü There were 107 sales of detached homes in Ajax in October 2014
ü There were 140 new listings during October 2014 and only 96 active listings remained at the end of the month
Buyers’ Market, Sellers’ Market or Balanced Market?
An accepted method of determining whether a specific area is in one of these markets is to calculate the ratio between Sales and Active Listings.
The ratio, expressed as a percentage, is an indication of the following:
55% or more = Sellers’ Market
36% to 54% = Balanced Market
35% or less = Buyer’s Market
For October 2014, the ratio of sales to active listings was 107/96
= 111%.
This is an indication that, for detached homes in Ajax, in October 2014 it was still a VERY STRONG Sellers’ Market.
The fact that it is still a Sellers’ Market in confirmed by two other statistics:
(1) The average number of days that detached homes in Ajax were on the market in October 2014 was a very low 14.4 days; and
(2) The average ratio of Selling Price to Listing Price for detached homes in Ajax in October 2014 was a very high 100.12%.
This means that some homes sold for significantly higher prices than their listing price, due to competition among buyers.
This is a clear indication that there was very strong competition among Buyers during the month leaving little opportunity for Buyers to negotiate on price.
It is at times, like these, that a Buyer needs an agent, independent of the Seller’s agent, who is a skilled negotiator.
Jason Mercer, Director of Market Analysis for Toronto Real Estate Board says:
“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned. The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well.”
In a seller’s market, buyers have to:
· make quick decisions
· have, already, done adequate research
· know exactly what they are looking for
· know how much they can afford to pay by having arranged pre-approval of finance
· have a real estate agent working for them who:
ü knows and understands the market
ü through listing alerts, will bring the buyer’s attention homes that meet the buyer’s criteria immediately they are listed for sale (in a Sellers’ Market, it is important for Buyers, who are ready to buy, to know immediately a home, that meets their criteria, comes on to the market)
ü can show the buyer the prices that are generally being paid, compared to listing prices, in the current market
Do you know that, as a potential buyer, in almost every case, you can have an agent working for you, without you having to pay for their service & advice.
This is because the buyer’s agent is usually paid by the seller’s agent.
It is advisable for buyers to use an agent who is totally independent from the seller’s (listing) agent. This avoids any conflict of interest during negotiations for a purchase.
Monthly Average Price and Number of Homes Sold
Ajax Detached Homes, October 2013 to October 2014
You will see that, over the last 12 months:
· the monthly average selling price for a detached home in Ajax has ranged from a low of $429,704 (December 2013) to a high of $504,959 (July 2014), with a drop back in October 2014 to $484,891
· the number of detached homes sold in Ajax in one month has ranged from 48 (December 2013) to 185 (May 2014).
Average Ratio of Sold Price to Listing Price
Ajax Detached Homes, October 2013 to October 2014
The average ratio of price sold to price asked (list price) is an indication of demand for homes related to the listing price.
If a home is listed for $450,000 and it sells for $445,500 the sold price to ask price ratio is 99%.
You will see, from the above graph, that over the past 12 months, the monthly average selling price to market price ratio for detached homes in Ajax ranged from a low of 97.95% (November 2013) to a high of 100.12% in October 2014.
This information is helpful when you are intending to make an offer on a home as it gives a general guideline on the price you may have to end up paying. However, it is a guideline only as the figures can vary significantly for individual properties.
Homes that are well priced for the current market tend to sell quickly and close to, or above, asking price.
Average Days on Market
Ajax Detached Homes, October 2013 to October 2014
The average number of days that homes are on the market is an indication of:
· the average number of days from the time a home is listed for sale until it is Sold Firm (unconditional);
· the relationship between supply (sellers) and demand (buyers) – the number of potential buyers compared to the number of homes listed for sale
You will notice, from the above graph, that, in November 2013, the average days on market was 24.3 days and it reduced to 13.6 days in March 2014. At the end of October 2014, it was, still, a very low 14.4 days.
An average of 30 days or less is a clear indication that the number of buyers is more than the number of homes for sale. This is another indication of a Sellers’ Market.
Homes that are well priced for the current market tend to sell quickly and close to, or above, asking price.
Ajax Home Prices - Detached Homes - October 2014
Summary:
In October 2014:
· 107 detached homes were sold in Ajax; this is an increase of 5 above the 102 that sold in October 2013
· Average price was $484,891 this is an increase of $33,492 above October 2013
· Median price was $470,000; this is an increase of $35,000 above October 2013
· There were 140 new listings for the month; a decrease of 4 below October 2013
· There were only 96 active listings at the end of the month; a decrease of 38 below October 2013
· Average selling price was a very high 100.12% of listing price; in October 2013 it was 98.87%
· Average days on market was a very low 14.4 compared to 18.3 in October 2013
Find Homes for Sale in Ajax, Ontario
YOU ARE INVITED to visit my website, at any time and as often as you like, to find pictures & details of homes for sale in Ajax:
For photos and details of homes currently for sale in Ajax:
You can also arrange to be notified when Ajax homes, that meet your criteria, come onto the market.
These services are available to you without obligation.
If you are thinking of selling, you can also search on my website for homes, similar to yours, that would be competition for your home, if you list it for sale.
Obtain an indication of the market value of your home.
For answers to your questions, email me; or call 905-723-5944.
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