The lack of supply and the increased demand certainly continued in the month of April.
For single family homes the number of listings compared to last April was up by 4% however the number of sales in comparison was up 30%. The result being that the Active Inventory at the end of April was down 32% in comparison to April 2015 (197 versus 290).
In addition the Day on Market has declined dramatically to an average of 25 versus 57 last year. A good percentage of the listings have an offer within days of coming on the market.
As everyone expects, this results in increased prices. The average sale price of homes sold this April was $479,214 versus $429,458 in April 2015.
What does this mean for Buyers?
- It is best to know what you are looking for and be familiar with market values so that you are ready to act as soon as something comes on the market
- Ensure that you are on Preferred Client Services so you are getting notifications of new listings that meet your criteria as soon as they are in the Real Estate Board system (this is always in advance of realtor.ca) so you know about it immediately. This way you may be aware even before your agent is aware, depending who is viewing their computer 1st
- Financing certainly needs to have been arranged, may still be conditional on bank approval of the property, and be ready to make immediate decisions
- Be prepared that there may be competing offers and therefore know how you may approach such a situation
- Be prepared that though you may view and write immediately the seller may wait a few days before considering an offer in order to give their home some exposure to the market. On most occasions they are not willing to entertain the 1st offer if there has not been time for additional showings
We welcome your inquiries to discuss your specific situation and assist you in making the right decisions for you. Keep in mind the above statistics are with a broad brush and if you would like more specific details (specific sub-regions or specific style of housing) contact us.
Rudi & Trish