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Prices for Detached Homes in Pickering, Ontario, for October 2014

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Real Estate Sales Representative

Prices for Detached Homes in Pickering, Ontario, for October 2014

Real estate market data for Pickering, Ontario, for October, 2014 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage

 

Pickering Home Prices for Detached Homes

Some points of Interest:

ü The average price, for detached homes in Pickering in October 2014, increased from $506,015 in October 2013 to $606,638 in October 2014 – a huge increase of $100,623 = a massive 19.89%

 

ü The median price, for detached homes in Pickering in October 2014, increased from $465,000 in October 2013 to $586,500 in October 2014 – a huge increase of $121,500 = a massive 26.13%

 

ü There were 67 sales of detached homes in Pickering in October 2014

 

ü There were 101 new listings during October 2014 and only 115 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 101/115

= 87.83%.

 

This is an indication that, for detached homes in Pickering, 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 Pickering were on the market in October 2014 was a very low 16.1 days; and

 

(2)  The average ratio of Selling Price to Listing Price for detached homes in Pickering in October 2014 was a very high 99.37%.

This means that a number of homes must have sold at, or above,  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 only marginal 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

 

Pickering Detached Homes, October 2013 to October 2014

Graph showing monthly prices & sales numbers

You will see that, over the last 12 months:

 

·         The monthly average selling price for a detached home in Pickering has ranged from a low of $506,015 (October 2013) to a high of $606,638 (October 2014)

 

·         In October 2014 the average selling price increased by a huge $52,508 from the previous month

 

·         The number of detached homes sold in Pickering in one month has ranged from 33 (January 2014) to 100 (May 2014).

 

Average prices can be misleading, especially when the number of sales is relatively low.

If there are not many sales, a few high quality homes, selling for above average prices can skew the average figure up for the particular month.

Similarly, a few lower quality homes, selling for below average prices can skew the average figure down for a particular month.

 

When there is a significant increase, or decrease, in average selling price, it is worth comparing the average price with the median price for the same period.

 

In Pickering in October 2014, the median selling price increased by $121,500 over the October 2013 figure.

 

This increase is congruent with the substantial increase in the average price. It is an indication that the reason for the large increase in average selling price was not due to a few high price sales skewing the average for the month.

 

Average Ratio of Sold Price to Listing Price

 

Pickering Detached Homes, October 2013 to October 2014

Graph showing sale price to listing price ratio

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 $550,000 and it sells for $544,500 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 Pickering ranged from a low of 97.49% (November 2013) to a high of 99.79% in February 2014, finishing at 99.37 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

 

Pickering Detached Homes, October 2013 to October 2014

Graph showing days on market

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 December 2013, the average days on market was 33.1 days and it reduced to 17 days in March 2014. At the end of October 2014, it was a very low 16.1 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.

 

Pickering Home Prices - Detached Homes - October 2014

Summary:

In October 2014:

·      67 detached homes were sold in Pickering; this is a decrease of 12 below the 79 that sold in October 2013

 

·      Average price was $606,638 this is a huge increase of $100,623 above October 2013

 

·      Median price was $586,500; this is a huge increase of $121,500 above October 2013

 

·      There were 101 new listings for the month; a decrease of 12 below October 2013

 

·      There were only 115 active listings at the end of the month; a decrease of 39 below October 2013

 

·      Average selling price was a very high 99.37% of listing price; in October 2013 it was 98.85%

 

·      Average days on market was a very low 16.1 compared to 27.2 in October 2013

 

Find Homes for Sale in Pickering, 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 Pickering

 

For photos and details of homes currently for sale in Pickering:

$300,000 to $400,000

$400,000 to $500,000

$500,000 to $600,000

$600,000 to $700,000

Over $700,000

 

You can also arrange to be notified when Pickering 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.

 

 

Comments (1)

John Pusa
Glendale, CA

Brian - These are very helpful detailed list of stats on prices for detached homes in Pickering, Ontario for October 2014.

Nov 25, 2014 05:57 AM