House Prices in Oshawa, Ontario, for December 2014 - Detached Homes
Real estate market data for Oshawa, Ontario, for December, 2014 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Oshawa House Prices – Detached Homes
(See explanation of 5 different house types)
Author’s Note:
In reviewing the market statistics for the month of December, it is relevant to note that, due to preparations for the holiday season, the holiday period itself (and the weather!), real estate activity is usually significantly lower than at other times of the year.
This should be kept in mind when considering the information in this Market Report.
Some points of Interest for December 2014:
ü The average price, for Detached Homes in Oshawa in December 2014, increased from $322,779 in December 2013 to $337,548 in December 2014 – a substantial increase of $14,769 = 4.58%
ü The lowest average price for a month during the year was $322,779 in December 2013; the highest average price was $359,544 in January 2014.
ü The median price, for Detached Houses in Oshawa in December 2014, increased from $305,000 in December 2013 to $330,050 in December 2014 – a big increase of $25,050 = 8.21%
ü 94 Detached Homes were sold in Oshawa in December 2014; this is 17 more than the 77 sold in December 2013
ü There were 87 new listings for the month; 23 more than December 2013
ü There were 119 active listings at the end of the month; 1 more than December 2013
ü Average selling price was 98.49% of listing price; in December 2013 it was 98.13%
ü Average days on market was 31.9; this is a significant increase from 19.3 days in the previous month, but similar to the 30.3 days in December 2013
Buyers’ Market, Sellers’ Market or Balanced Market?
For Detached Homes in Oshawa in December 2014:
· Ratio of Sales to New Listings:
Sales = 94; New Listings = 87
Ratio is 94/87 = 1.08 = 108%
As this is over 60%, it indicates a Seller’ Market
· Absorption Rate – Ratio of Sales to Active Listings:
Sales = 94; Active Listings = 119
Ratio is 94/119 = 0.79 = 79%
As this is over 20%, it indicates a Seller’ Market
· Number of Months of Inventory:
Sales = 94; Active Listings = 119
119/94 = 1.27 months
As this is less than 4 months, it indicates a Seller’ Market
· Days on Market:
The average number of days that Detached Homes were on the market in December 2014 was 31.9 days
As this is less than 120 days, it indicates a Seller’ Market
· Ratio of Sold Price to Listed Price:
The average ratio of Selling Price to Listing Price was 98.49%
This is consistent with the other indicators and confirms a Sellers’ Market
The above are clear indications that, the existing Sellers’ Market for Detached Homes in Oshawa, was continuing.
In commenting on real estate statistics for Toronto Real Estate Board (TREB), the Board’s President Paul Etherington said:
“While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments.
Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month. Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment."
Jason Mercer, Director of Market Analysis for TREB said:
"The strong price growth we experienced in 2014 can be explained with two words: listings shortage. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses. The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased. This situation resulted in more competition between buyers and more aggressive offers,"
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
ü has excellent negotiation skills
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.
See 5 Reasons Why a Buyer SHOULD NOT Talk to a Listing Agent
Monthly Average Price and Number of Homes Sold
Oshawa Detached Houses
December 2013 to December 2014
You will see that, over the last 12 months:
· the monthly average selling price for a detached house in Oshawa has ranged from a low of $322,779 (December 2013) to a high of $359,544 (January 2014), finishing at $337,548 in December 2014
· the number of Detached Homes sold in Oshawa in one month has ranged from 77 (December 2013) to 250 (May 2014), finishing at 94 in December 2014
Average prices can be misleading, especially when the number of sales is relatively low.
High quality homes, selling for above average prices can skew the average selling price up for the particular month.
Similarly, lower quality homes, selling for below average prices can skew the average selling price down for a particular month.
When there is a significant increase, or decrease, in average selling price, it is worth comparing the average selling price with the average median price for the same period.
At first glance, there appears to be a disconnect between the increase of $14,769 in the average selling price compared with the much higher $25,050 increase in the average median price for the same period.
This can be explained by the fact that the average selling price in December 2013 was $322,779 but the average median selling price at that time was only $305,000.
It is likely that this difference between the average selling price and the average median price, in December 2013, was due to a significant number of higher priced sales in that month which skewed the average selling price up compared to the average median price for the same period.
Average Ratio of Sold Price to Listed Price
Oshawa Detached Homes
December 2013 to December 2014
The average ratio of sold price to price asked (listed price) is an indication of demand for houses related to the listed price.
If a home is listed for $340,000 and it sells for $336,600, the sold price to ask price ratio is 99%.
You will see, from the above graph, that over the past 12 months, the ratio of monthly average selling price to listed price for Detached Homes in Oshawa ranged from a low of 98.13% (December 2013) to a high of 99.36% (June 2014), finishing at 98.49% in December 2014.
You will note that, because of the scale of the graph, the range appears to be much wider than this. In fact, in most months, the ratio was above, or just fractionally below, 99%.
This is a clear indication that there was competition among Buyers during the month but some opportunity for Buyers to negotiate on price.
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 compared to the listing price.
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
Oshawa Detached Houses
December 2013 to December 2014
The average number of days that homes are on the market is an indication of:
· the period from when a home is listed for sale until it is Sold Firm (unconditional);
· the level of competition between potential buyers
You will notice, from the above graph that, in December 2013, the average days on market was 30.3 days. For most of the year it remained below 23 days. At the end of December 2014 it was 31.9 days, continuing the 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.
Oshawa Home Prices – Detached Homes
December 2014
Summary:
Although the sales of detached houses in Oshawa in December were about half of the average number of sales for the summer months, there was clear indication that the Sellers’ Market conditions are continuing.
For Buyers, this means that
· quality homes that are well priced will not be on the market for very long
· Buyers have to be in a position to make quick decisions when they find a home that is right for them
· Buyers should work with a real estate agent, independent from the listing agent, who will inform the Buyer immediately a home, that meets their criteria, is listed for sale
See the section, earlier in this article, headed “In a seller’s market, buyers have to:”
Find Homes for Sale in Oshawa, 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 Oshawa
For photos and details of detached homes currently for sale in Oshawa:
You can also arrange to be notified when Oshawa 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:
ü Search on my website for homes, similar to yours, that would be competition for your home, if you list it for sale
ü Obtain an indication of the market value of your home
For answers to your questions, email me; or call 905-723-5944.
About the Author:
Brian Wiseman LL.B., CIPS, is a Sales Representative with Keller Williams Energy Real Estate Brokerage in Oshawa & Whitby, Ontario, Canada.
In his past lives, Brian was a Partner in Legal Practices, specializing in Real Estate and Business Law in Australia and a Principal of a successful Financial Planning Practice in Australia.
After the sale of his business interests in Australia, Brian started a new adventure by relocating to Canada with his Canadian wife.
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