House Prices in Whitby, Ontario, for January 2015 - Detached Homes
Real estate market data for Whitby, Ontario, for January, 2015 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Whitby 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.
Some points of Interest for January 2015:
ü The average price, for Detached Homes in Whitby decreased from $529,024 in January 2014 to $501,338 in January 2015 – a significant decrease of $27,686 = 5.23%
ü The lowest average price for a month during the year was $451,380 in August 2014; the highest average price was $529,024 in January 2014.
ü The median price, for Detached Houses in Whitby in January 2015, increased from $422,500 in January 2014 to $469,900 in January 2015 – a big increase of $47,400 = 11.22%
ü 73 Detached Homes were sold in Whitby in January 2015; this is 11 more than the 62 sold in January 2014
ü There were 126 new listings for the month; 13 more than January 2014
ü There were 106 active listings at the end of the month; 2 less than January 2014
ü Average sold price was 99.58% of listed price; in January 2014 it was 98.49%
ü Average days on market was 23.9; in January 2014 it was 20.4
Buyers’ Market, Sellers’ Market or Balanced Market?
For Detached Homes in Whitby in January 2015:
· Ratio of Sales to New Listings:
Sales = 73; New Listings = 126
Ratio is 73/126 = 0.58 = 58%
As this is slightly under 60%, it indicates a Balanced Market
· Absorption Rate – Ratio of Sales to Active Listings:
Sales = 73; Active Listings = 106
Ratio is 73/106 = 0.69 = 69%
As this is over 20%, it indicates a Seller’ Market
· Number of Months of Inventory:
Sales = 73; Active Listings = 106
106/73 = 1.45 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 23.9 days
As this is less than 120 days, it indicates a Seller’ Market
· Ratio of Sold Price to Listed Price:
The average ratio of Sale Price to Listed Price was 99.58%
This is consistent with a Sellers’ Market
The above, except for the Ratio of Sales to New Listings, are clear indications that the existing Sellers’ Market, for Detached Homes in Whitby, was continuing.
The Ratio of Sales to New Listings was 58%, just under the 60% indicator of a Sellers’ Market.
It is clear that, in January 2015, there was strong competition among Buyers and only 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
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
Whitby Detached Houses
January 2014 to January 2015
You will see that, over the last 12 months:
· the monthly average sold price for a detached house in Whitby has ranged from a high of $529,024 (January 2014) to a low of $451,380 (August 2014), finishing at $501,338 in January 2015
· the number of Detached Homes sold in Whitby in one month has ranged between 47 (December 2014) and 186 (May 2014), finishing at 73 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 $27,686 in the average sold price compared with the big increase of $47,400 in the average median price for the same period.
This can be explained, in part, by the fact that the average sold price in January 2014 was $529,024 but the median selling price at that time was only $422,500 – a difference of $106,524.
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.
It will be noted that, at the end of January 2015, there was, still, a significant difference ($41,438) between the average selling price of $501,338 and the median price of $469,900. However, the difference is much smaller than in January 2014.
Average Ratio of Sold Price to Listed Price
Whitby Detached Homes
January 2014 to January 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 $500,000 and it sells for $495,000, 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 Whitby ranged from a low of 98.40% (December 2014) to a high of 100.20% (February 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 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
Whitby Detached Houses
January 2014 to January 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 January 2014, the average days on market was 20.4 days. For most of the year it remained below 22 days except for an increase to just above 23 days in the usually quiet months of December 2014 and January 2015.
These figures confirm 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.
Whitby Home Prices – Detached Homes
January 2015
Summary:
Although the sales of detached houses in Whitby 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 Whitby.
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 Whitby, 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 Whitby
For photos and details of detached homes currently for sale in Whitby:
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 Whitby & 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.
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