House Prices in Clarington, Ontario, for February 2015 - Detached Homes
Real estate market data for Clarington, Ontario, for February 2015, provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Clarington House Prices – Detached Homes
(See explanation of 5 different house types)
Some points of Interest for February 2015:
ü The average price, for Detached Homes in Clarington in February 2015, increased from $366,364 in February 2014 to $413,414 in February 2015 – a massive increase of $47,050 = 12.84%
ü The lowest average price for a month during the year was $358,813 in March 2014; the highest average price was $431,336 in January 2015.
ü The median price, for Detached Houses in Clarington in February 2015, increased from $346,750 in February 2014 to $395,000 in February 2015 – a massive increase of $48,250 = 13.91%
ü 87 Detached Homes were sold in Clarington in February 2015; this is 28 more than the 59 sold in February 2014
ü There were 156 new listings for the month; 28 more than February 2014
ü There were 159 active listings at the end of the month, 4 less than February 2014
ü Average sold price was a high 99.68% of listed price; in February 2014 it was 98.32%
ü Average days on market was a low 20.7; in February 2014 it was 27.4 days
Buyers’ Market, Sellers’ Market or Balanced Market?
FOR DETACHED HOMES IN CLARINGTON IN FEBRUARY 2015:
· Ratio of Sales to New Listings:
Sales = 87; New Listings = 156
Ratio is 87/156 = 0.56 = 56%
As this is below 60%, it indicates a Balanced Market
· Absorption Rate – Ratio of Sales to Active Listings:
Sales = 87; Active Listings = 159
Ratio is 87/159 = 0.55 = 55%
As this is over 20%, it indicates a strong Seller’ Market
· Number of Months of Inventory:
Sales = 87; Active Listings = 159
159/87 = 1.83 months
As this is less than 4 months, it indicates a strong Seller’ Market
· Days on Market:
The average number of days that Detached Homes were on the market in February 2015 was a low 20.7 days
As this is less than 120 days, it indicates a strong Seller’ Market
· Ratio of Sold Price to Listed Price:
The average ratio of Sale Price to Listed Price was a high 99.68%
This, too, is an indication that, in February 2015, it remained a strong Sellers’ Market
Except for the Ratio of Sales to New Listings, there are clear indications that the existing Sellers’ Market, for Detached Homes in Clarington, was continuing. There was still strong competition among Buyers, and only limited opportunity for Buyers to negotiate on price.
However, the Ratio of Sales to New Listings may be an indication that there will be less competition among Buyers in the Spring and Summer months.
In commenting on real estate statistics for Toronto Real Estate Board (TREB), the Board’s Jason Mercer, Director of Market Analysis for TREB said:
" The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned.”
See 5 Essentials for a Buyer in a Sellers’ 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.
See 5 Reasons Why a Buyer SHOULD NOT Talk to a Listing Agent
Monthly Average Price and Number of Homes Sold
Clarington Detached Houses
February 2014 to February 2015
You will see, from the above graph, that:
· the monthly average sold price for a detached house in Clarington has ranged from a low of $358,813 (March 2014) to a high of $431,336 in January 2015, finishing at $413,414 in February 2015
· the number of Detached Homes sold in Clarington in one month has ranged from 158 (May 2014) to 47 (December 2014), finishing at 87 in February 2015
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 sold price up for the particular month.
Similarly, lower quality homes, selling for below average prices can skew the average sold price down for a particular month.
The average sold price, for a Detached House in Clarington in February 2015, was $413,414 whereas the median price in that month was $395,000 – a difference of $18,414.
It is likely that this difference between the average sold price and the median price, in February 2015, was due to a significant number of high priced sales in that month which skewed the average sold price up compared to the median price for the same period.
That this is the probable cause is confirmed by the fact that, in Clarington at the time of writing this report, there are 45 homes currently listed for sale above $700,000; 17 of those are above $1million & 1 of those is above $3million.
It doesn’t take many sales of high priced listings to significantly skew the average sold price above the median price.
Average Ratio of Sold Price to Listed Price
Clarington Detached Homes
February 2014 to February 2015
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 $400,000 and it sells for $396,000, the sold price to ask price ratio is 99%.
You will see, from the above graph, that over the period, the ratio of monthly average sold price to listed price for Detached Homes in Clarington ranged from a low of 97.14% in the usually quiet month of December 2014 to a high of 99.68% in February 2015.
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, 98%.
This is an indication that, in February 2015, there were limited opportunities for Buyers of Detached Homes in Clarington 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
Clarington Detached Houses
February 2014 to February 2015
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 February 2014, the average days on market was a low 27.4 days. For most of the year it was 28 days, or less.
The average days on market increased, not unexpectedly, in the quieter months of December 2014 and January 2015, before dropping back to 20.7 days in February 2015.
This statistic of average days on market throughout the period is confirmation of the continuation of the strong Sellers’ Market.
Homes that are well priced for the current market tend to sell quickly and close to, or above, asking price.
Clarington Home Prices – Detached Homes
February 2015
Summary:
All of the indicators, for Detached Houses in Clarington in February 2015, except for the Ratio of Sales to New Listings, point to the conclusion that the existing strong Sellers’ Market conditions were continuing. There was still strong competition among Buyers and there was limited opportunity for Buyers to negotiate on price.
See 5 Essentials for a Buyer in a Sellers’ Market
For Buyers, the good news is that the Ratio of Sales to New Listings indicates that, during February 2015, there was an increase in quality homes being listed for sale in Clarington.
If this trend continues, it could make it easier for Buyers to find the home they are looking for during the coming Spring and Summer months.
Find Homes for Sale in Clarington, 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 Clarington
For photos and details of detached homes currently for sale in Clarington:
You can also arrange to be notified when 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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