Pickering House Prices, February 2015 - Detached Houses

By
Real Estate Sales Representative

image showing a scale with a house balanced by moneyHouse Prices in Pickering, Ontario, for February 2015 - Detached Homes

Real estate market data for Pickering, Ontario, for February 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)

 

Some Points of Interest for February 2015:

 image showing a house on a pile of money

ü The average price, for Detached Homes in Pickering in February 2015, increased from $531,157 in February 2014 to $580,302 in February 2015 – a big increase of $49,145 = 9.25%

 

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 The median price, for Detached Houses in Pickering in February 2015, increased from $494,000 in February 2014 to $545,143 in February 2015 – a big increase of $51,143 = 10.35%

 

ü 51 Detached Homes were sold in Pickering in February 2015; this is 14 more than the 37 sold in February 2014

 

ü There were 81 new listings for the month; 1 less than February 2014

 

ü There were 90 active listings at the end of the month, 4 less than February 2014

 

ü Average sold price was 100.56% of listed price; in February 2014 it was 99.79%

 

ü Average days on market was 15.7; in February 2014 it was 21.4 days

 

Buyers’ Market, Sellers’ Market or Balanced Market?

Explanation of these Markets

 

FOR DETACHED HOMES IN PICKERING IN FEBRUARY 2015:

image showing rising house prices 

·      Ratio of Sales to New Listings:

Sales = 51; New Listings = 81

Ratio is 51/81 = 0.63 = 63%

As this is above 60%, it indicates a Sellers’ Market

 

·      Absorption Rate – Ratio of Sales to Active Listings:

Sales = 51; Active Listings = 90

Ratio is 51/90 = 0.57 = 57%

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

 

·      Number of Months of Inventory:

Sales = 51; Active Listings = 90

90/51 = 1.76 months

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

 

·      Days on Market:

The average number of days that Detached Homes were on the market in February 2015 was a very low 15.7 days

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

 

·      Ratio of Sold Price to Listed Price:

The average ratio of Sold Price to Listed Price was 100.56%

This is congruent with a strong Sellers’ Market

 

image of a house surrounded by peopleThe above are clear indications that the existing Sellers’ Market, for Detached Homes in Pickering, was continuing strongly.

 

It is clear that, in February 2015, there was still strong competition among Buyers and little 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:

 “Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions.

Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live.

The overall supply of homes for sale, as measured by the count of active listings at the end of February 2015…. means that market conditions became tighter, leading to more competition between buyers.

 

Jason Mercer, Director of Market Analysis for TREB said:

 " The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned.”

 

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

Pickering Detached Houses

 February 2014 to February 2015

graph showing average sold price and number of units sold

 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, finishing at $580,302 in February 2015

 

·         the number of Detached Homes sold in Pickering in one month has ranged from 37 (February 2014) to 100 (May 2014), finishing at 51 in February 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.

 

At first glance, there appears to be a disconnect between the average sold price, in February 2015, of $580,302 compared with the median price, for the same period, of $545,143, a big difference of $35,159.

 

It is likely that this difference between the average sold price and the median price, in February 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 fact that, at the time of writing this report, there are 45 homes currently listed for sale above $700,000; 24 of those are above $1million &, of those, 5 are above $2million & 1 is just under $5million.

 

Average Ratio of Sold Price to Listed Price

Pickering Detached Homes

 February 2014 to February 2015

graph showing ratio of average sold price to listed price

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 $580,000 and it sells for $574,200, 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 98.76% in April 2014 to a high of 100.56% in February 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 100.56%, in February 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

 February 2014 to February 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 February 2014, the average days on market was a low 21.4 days. Except for the usually quiet months of December 2014 and January 2015, the average days on market was less than 21 days, finishing at a very low 15.7 days in February 2015.

 

This statistic of average days on market 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

image of a house and a SOLD signFebruary 2015

Summary:

All of the indicators, for Detached Houses in Pickering in February 2015, point to the conclusion that the existing strong Sellers’ Market conditions were continuing.

 

It is clear that, in February 2015, there was still strong competition among Buyers and there was little opportunity for Buyers to negotiate on price.

 

See 5 Essentials for a Buyer in a Sellers’ Market

 

Find Homes for Sale in Pickering, Ontario

image of houses beneath 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 Pickering

 

For photos and details of detached homes currently for sale in Pickering:

 

Under $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 person 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 (1)

Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Brian,

Excellent market report! Now question It is a seller's market in Pickering Ontario!

Apr 08, 2015 11:23 AM