Oshawa House Prices, January 2015 - Semi-Detached Houses

By
Real Estate Sales Representative

image of a scale with a house balanced by moneyHouse Prices in Oshawa, Ontario, for January 2015 - Semi-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 – Semi-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 showing house on moneySome points of Interest for January 2015:

 

ü The average price, for Semi-Detached Homes in Oshawa in January 2015, increased from $234,380 in January 2014 to $280,708 in January 2015 – a huge increase of $46,328 = 19.77%

 

ü The lowest average price for a month during the year was $230,910 in April 2014; the highest average price was $280,708 in January 2015.

 

ü The median price, for Semi-Detached Houses in Oshawa in January 2015, increased from $230,000 in January 2014 to $265,700 in January 2015 – a big increase of $35,700 = 15.52%

 

ü 13 Semi-Detached Homes were sold in Oshawa in January 2015; this is 7 less than the 20 sold in January 2014

 

ü There were 19 new listings for the month; 5 less than January 2014

 

ü There were 10 active listings at the end of the month; 1 more than January 2014

 

ü Average sold price was 103.36% of listed price; in January 2014 it was 99.22%

 

ü Average days on market was 17.9; in January 2014 it was, also, 17.9

 

Buyers’ Market, Sellers’ Market or Balanced Market?

Explanation of these Markets

 

image showing rising house pricesFor Semi-Detached Homes in Oshawa in January 2015:

·      Ratio of Sales to New Listings:

Sales = 13; New Listings = 19

Ratio is 13/19 = 0.68 = 68%

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

 

·      Absorption Rate – Ratio of Sales to Active Listings:

Sales = 13; Active Listings = 10

Ratio is 13/10 = 1.30 = 130%

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

 

·      Number of Months of Inventory:

Sales = 13; Active Listings = 10

10/13 = 0.77 months

As this is less than 4 months, it indicates a Seller’ Market

 

·      Days on Market:

The average number of days that Semi-Detached Homes were on the market in January 2015 was 17.9 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 103.36%

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

 

image showing house surrounded by peopleThe above are clear indications that the existing Sellers’ Market, for Semi-Detached Homes in Oshawa, was continuing and that, in January 2015, there was extremely 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 Semi-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 Semi-Detached house in Oshawa has ranged from a low of $230,910 (April 2014) to a high of $280,708 (January 2015)

 

·         the number of Semi-Detached Homes sold in Oshawa in one month has ranged from 13 (December 2014 and January 2015) to 41 (June 2014), finishing at 13 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 average sold price, in January 2015, of $280,708 compared with the median price, for the same period, of $265,700.

 

You will notice that the average sold price in January 2015 increased significantly above the fairly stable prices of previous months.

 

It is likely that this difference between the average sold price and the median price, in January 2015, was due to higher priced sales in that month which skewed the average sold price up compared to the median price for the same period.

 

Average Ratio of Sold Price to Listed Price

Oshawa Semi-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 $250,000 and it sells for $247,500, 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 Semi-Detached Homes in Oshawa ranged from a low of 97.90% (December 2014) to a high of 103.36% (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 extremely 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 Semi-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 17.9 days. For most of the year it remained below 18 days except for a spike to 27.1 days in the usually quiet month of December 2014. At the end of January 2015 it was back down to 17.9 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 – Semi-Detached Homes

January 2015

 image of house and SOLD signSummary:

Although the sales of Semi-Detached houses in Oshawa in January 2015 were less than 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 houses under a magnifying glassYOU 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 and Semi-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 "What is my home worth?"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)

Kona Home Team (LUVA LLC) Lance Owens (RB-24133)
Kona Home Team (luva llc) - Kailua-Kona, HI
2024 Real Estate Expert - Hawaii Island

Looks like you guys are doing pretty good up there. Better than the national average, and I have to tell you - FANTASTIC report, tons of information there and lots of good links. 

Mar 02, 2015 12:58 AM
Brian Wiseman LL.B. CIPS
Oshawa, ON
The WiseMan of Real Estate

Thanks for your feedback, Lance!

It is REALLY appreciated.

Of course, there is always two sides to a story.

In a Sellers' Market, it's great for those of us who can get listings. It is tough on Buyers' Agents when properties are selling firm in just a few days!

Mar 02, 2015 05:17 AM