Oshawa House Prices, January 2015 - Detached Houses

By
Real Estate Sales Representative

image showing scale with house balanced by cashHouse Prices in Oshawa, Ontario, for January 2015 - Detached Homes

Real estate market data for Oshawa, Ontario, for January, 2015 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 January, 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.

 

image of house on moneySome points of Interest for January 2015:

 

ü The average price, for Detached Homes in Oshawa in January 2015, decreased from $359,544 in January 2014 to $354,003 in January 2015 – a small decrease of $5,541 = 1.54%

 

ü The lowest average price for a month during the year was $325,828 in May 2014; the highest average price was $359,544 in January 2014.

 

ü The median price, for Detached Houses in Oshawa in January 2015, increased from $332,500 in January 2014 to $350,000 in January 2015 – a significant increase of $17,500 = 5.26%

 

ü 109 Detached Homes were sold in Oshawa in January 2015; this is 24 more than the 85 sold in January 2014

 

ü There were 159 new listings for the month; 6 more than January 2014

 

ü There were 119 active listings at the end of the month; 20 less than January 2014

 

ü Average sold price was 99.90% of listed price; in January 2014 it was 98.64%

 

ü Average days on market was 20.4; in January 2014 it was 27.7

 

Buyers’ Market, Sellers’ Market or Balanced Market?

Explanation of these Markets

 image of rising house prices

For Detached Homes in Oshawa in January 2015:

·      Ratio of Sales to New Listings:

Sales = 109; New Listings = 159

Ratio is 109/159 = 0.69 = 69%

As this is over 60%, it indicates a Seller’ Market

 

·      Absorption Rate – Ratio of Sales to Active Listings:

Sales = 109; Active Listings = 119

Ratio is 109/119 = 0.92 = 92%

As this is over 20%, it indicates a Seller’ Market

 

·      Number of Months of Inventory:

Sales = 109; Active Listings = 119

119/109 = 1.09 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 January 2015 was 20.4 days

As this is less than 120 days, it indicates a Seller’ Market

 

·      Ratio of Sold Price to Listed Price:

The average ratio of Sale Price to Listed Price was 99.90%

This is consistent with the other indicators and confirms a Sellers’ Market

 

image of a  house surrounded by peopleThe above are clear indications that the existing Sellers’ Market, for Detached Homes in Oshawa, was continuing and that, in January 2015, there was limited opportunity for buyers to negotiate on price.

 

In commenting on real estate statistics for Toronto Real Estate Board (TREB), the Board’s President Paul Etherington said:

The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs.”

 

Jason Mercer, Director of Market Analysis for TREB said:

 " Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well.”

 

See 5 Essentials for a Buyer in a Sellers’ Market

 

image of a question mark inside a headDo 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

 January 2014 to January 2015

graph showing average sold price and units sold

You will see that, over the last 12 months:

·         the monthly average sold price for a detached house in Oshawa has ranged from a high of $359,544 (January 2014) to a low of $325,828 (May 2014), finishing at $354,003 in January 2015

 

·         the number of Detached Homes sold in Oshawa in one month has ranged from 85 (January 2014) to 250 (May 2014), finishing at 109 in January 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.

 

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

 

At first glance, there appears to be a disconnect between the decrease of $5,541 in the average sold price compared with the significant increase of $17,500 in the average median price for the same period.

 

This can be explained by the fact that the average sold price in January 2014 was $359,544 but the median selling price at that time was only $332,500.

 

It is likely that this difference between the average sold price and the median price, in January 2014, was due to a significant number of higher priced sales in that month which skewed the average sold price up compared to the median price for the same period.

 

In fact, the average sold price in January 2015 of $354,003 is quite congruent with the median price for that period of $350,000.

 

Average Ratio of Sold Price to Listed Price

Oshawa Detached Homes

 January 2014 to January 2015

graph showing ratio of sold price to listed price

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 $350,000 and it sells for $346,500, 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 Oshawa ranged from a low of 98.49% (December 2014) to a high of 99.90% (January 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, 99%.

 

This is a clear indication that there was competition among Buyers during the month and limited 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

January 2014 to January 2015

graph showing average days on market

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 January 2014, the average days on market was 27.7 days. For most of the year it remained below 23 days except for a spike to 31.9 days in the usually quiet month of December 2014. At the end of January 2015 it was back down to 20.4 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

image of house and sold signJanuary 2015

 

Summary:

Although the sales of detached houses in Oshawa in January 2015 were about half of the average number of sales for the summer months, there is a clear indication that the Sellers’ Market conditions were 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 5 Essentials for a Buyer in a Sellers’ Market

 

For Buyers, the good news is that anecdotal evidence indicates that, during February 2015, there has been an increase in quality homes being listed for sale in Oshawa.

 

If this trend continues, it should make it easier for Buyers to find the home they are looking for during the coming spring and summer.

 

Find Homes for Sale in Oshawa, Ontario

image of a magnifying glass over homesYOU 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:

 

Under $300,000

 

$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 homes, that meet your criteria, come onto the market.

These services are available to you without obligation.

image of a figure and the words  

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:

photo of Brian WisemanBrian 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.

 

 

 

Comments (2)

Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

Exceptionally good report on this market, very clear and comprehensive. Thank you for posting this.

Feb 27, 2015 05:54 PM
Brian Wiseman LL.B. CIPS
Oshawa, ON
The WiseMan of Real Estate

Thanks, Kathleen.

I really appreciate the feedback!

Feb 28, 2015 04:16 AM