House Prices in Ajax, Ontario, for January 2015 - Detached Homes
Real estate market data for Ajax, Ontario, for January, 2015 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Ajax 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 Ajax in January 2015, increased from $458,806 in January 2014 to $572,279 in January 2015 – a massive increase of $113,473 = 24.73%
ü The lowest average price for a month during the year was $443,117 in February 2014; the highest average price was $572,279 in January 2015
ü The average sold price rose steadily from February 2014 until a sharp spike up in the period November 2014 to January 2015
ü The median price, for Detached Houses in Ajax in January 2015, increased from $431,500 in January 2014 to $479,500 in January 2015 – a huge increase of $48,000 = 11.12%
ü 53 Detached Homes were sold in Ajax in January 2015; this is 4 more than the 49 sold in January 2014
ü There were 91 new listings for the month; 9 more than January 2014
ü There were 72 active listings at the end of the month, 10 more than January 2014
ü Average sold price was 98.25% of listed price; in January 2014 it was 98.91%
ü Average days on market was 20.1; in January 2014 it was 21.6 days
Buyers’ Market, Sellers’ Market or Balanced Market?
For Detached Homes in Ajax in January 2015:
· Ratio of Sales to New Listings:
Sales = 53; New Listings = 91
Ratio is 53/91 = 0.58 = 58%
As this is below 60%, it indicates a Balanced Market
· Absorption Rate – Ratio of Sales to Active Listings:
Sales = 53; Active Listings = 72
Ratio is 53/72 = 0.74 = 74%
As this is over 20%, it indicates a Seller’ Market
· Number of Months of Inventory:
Sales = 53; Active Listings = 72
72/53 = 1.36 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 20.1 days
As this is less than 120 days, it indicates a Seller’ Market
· Ratio of Sold Price to Listed Price:
The average ratio of Sold Price to Listed Price was 98.25%
Except for the Ratio of Sales to New Listings and the Ratio of Sold Price to Listed Price, the statistics indicate the continuation of the existing Sellers’ Market, for Detached Homes in Ajax.
However, the Ratio of Sales to New Listings and the Ratio of Sold Price to Listed Price indicate some softening towards a Balanced Market.
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.
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,"
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
Ajax 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 Ajax has ranged from a low of $443,117 (February 2014) to a high of $572,279 in January 2015
· the monthly average sold price steadily increased from February 2014 until a significant spike upwards in December 2014 and January 2015
· the number of Detached Homes sold in Ajax in one month has ranged from 185 (May 2014) to 48 (December 2014), finishing at 53 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.
The average sold price, for a Detached House in Ajax in January 2015, was $572,279 whereas the median price in that month was $479,500 – a difference of $92,779.
It is likely that this difference between the average sold price and the median price, in January 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 spike in average sold price from $502,865 in November 2014 to $572,279 in January 2015
· The fact that, in Ajax at the time of writing this report, there are 50 homes currently listed for sale above $600,000; 3 of those are above $1.5million
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
Ajax 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 Ajax ranged from a high of 100.12% (October 2014) to a low of 98.25% in 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%.
The drop in Ratio of Monthly Average Sold Price to Listed Price in January 2015, indicates opportunity for Buyers to negotiate on price.
This seems incongruent with the huge spike in average sold price for the month.
It is likely that this apparent disconnect is the result of higher priced homes selling during the month for prices well below listed price.
This is an indication that, in January 2015, there were some opportunities for Buyers of Detached Homes in Ajax to negotiate on price. However, this opportunity was probably limited to the higher priced homes.
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
Ajax 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 21.6 days. For the rest of the year, until November 2014, it was less than 20 days.
The average days on market increased slightly, not unexpectedly, in the quieter months of December 2014 and January 2015.
This record of average days on market throughout the period of less than 22 days is strong confirmation of the continuation of the Sellers’ Market.
Homes that are well priced for the current market tend to sell quickly and close to, or above, asking price.
Ajax Home Prices – Detached Homes
January 2015
Summary:
Although sales of detached houses in Ajax in January 2015 were about one-third of the average number of sales for the summer months, there are clear indications that the Sellers’ Market conditions were continuing, although there are some signs that those conditions may be softening.
See 5 Essentials for a Buyer in a Sellers’ Market
Find Homes for Sale in Ajax, 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 Ajax
For photos and details of detached homes currently for sale in Ajax:
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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