House Prices in Pickering, Ontario, for January 2015 - Detached Homes
Real estate market data for Pickering, Ontario, for January, 2015 provided by Brian Wiseman LL.B., CIPS of Keller Williams Energy Real Estate Brokerage
Pickering 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 Pickering in January 2015, increased from $545,809 in January 2014 to $628,947 in January 2015 – a massive increase of $83,138 = 15.23%
ü The lowest average price for a month during the year was $531,157 in February 2014; the highest average price was $628,947 in January 2015
ü 38 Detached Homes were sold in Pickering in January 2015; this is 5 more than the 33 sold in January 2014
ü There were 71 new listings for the month; 1 less than January 2014
ü There were 86 active listings at the end of the month, 14 more than January 2014
ü Average sold price was 100.31% of listed price; in January 2014 it was 98.22%
ü Average days on market was 25.7; in January 2014 it was 30 days
Buyers’ Market, Sellers’ Market or Balanced Market?
FOR DETACHED HOMES IN PICKERING IN JANUARY 2015:
· Ratio of Sales to New Listings:
Sales = 38; New Listings = 71
Ratio is 38/71 = 0.54 = 54%
As this is below 60%, it indicates a Balanced Market
· Absorption Rate – Ratio of Sales to Active Listings:
Sales = 38; Active Listings = 86
Ratio is 38/86 = 0.44 = 44%
As this is over 20%, it indicates a Seller’ Market
· Number of Months of Inventory:
Sales = 38; Active Listings = 86
86/38 = 2.26 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 25.7 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 100.31%
This is congruent with a Sellers’ Market
The above are clear indications that, except for the Ratio of Sales to New Listings, the existing Sellers’ Market, for Detached Homes in Pickering, was continuing strongly.
It is clear that, in January 2015, there was still strong competition among Buyers and very limited opportunity for Buyers to negotiate on price.
However, the Ratio of Sales to New Listings shows indications of a trend towards a Balanced Market which could result in an increase in listings of homes for sale compared to sales made.
If this trend continues, it will be good news for Buyers because that would indicate less competition among Buyers during the Spring and Summer months.
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
Pickering Detached Houses
January 2014 to January 2015
You will see, from the above graph, that:
· the monthly average sold price for a detached house in Pickering has ranged from a low of $531,157 (February 2014) to a high of $628,947 in January 2015
· the number of Detached Homes sold in Pickering in one month has ranged from 33 (January 2014) to 100 (May 2014), finishing at 38 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.
Average Ratio of Sold Price to Listed Price
Pickering Detached Homes
January 2014 to January 2015
The ratio of average 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 $600,000 and it sells for $594,000, 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 Pickering ranged from a low of 98.22% in January 2014 to a high of 100.31% 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 Ratio of Average Sold Price to Listed Price of 100.31%, in January 2015, indicates that, in that month, there was very little opportunity for Buyers of Detached Homes in Pickering 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
Pickering 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 30 days. For the rest of the year, it was less than 26 days, finishing at 25.7 days in January 2015.
This statistic of average days on market of 30 days, or less, 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.
Pickering Home Prices – Detached Homes
January 2015
Summary:
Although the sales of Detached Houses in Pickering in January 2015 were about half the average number of sales for the summer months, there are clear indications that the strong Sellers’ Market conditions were continuing.
See 5 Essentials for a Buyer in a Sellers’ Market
However, the Ratio of Sales to New Listings could point to a possible easing of the market more towards a Balanced Market during the Spring and Summer months.
If this trend continues, it will be good news for Buyers.
Find Homes for Sale in Pickering, 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 Pickering
For photos and details of detached homes currently for sale in Pickering:
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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