THE NUMBERS: BUYERS MARKET OR SELLERS MARKET?

Tuesday, November 6, 2018 Written by Emmanuelle in News

A Buyer’s market is when there are less Buyers than supply (cf : houses, condos…), and the opposite being the Sellers’ Market (creating bidding wars as we all remember).

Are we in a balanced Market? A balanced market, doesn’t favour the seller or the buyer. A balanced market is somewhere in the four to six months range to sell. For example, if there were 300 active homes on the market at the end of October and there were 100 sales during October, it would take 3 months for all those homes on the market to sell, assuming there are no new listings. We divide 300 active listings by 100 sales in the month, which gives us 3 months.

Let us have a look at what is happening depending on local markets and specifics as detached, condominiums…etc.
As we are trying to understand in what market we are the key indicator for us professionals is the Months of inventory (MOI).

Let us have a look at the statistics:


OAKVILLE

Single Detached

MOI: 4.87
Days on the market : 33
MLS Home Price Index, sept 2018: 1,126,100$
Change in a year: -3.13%
 
Single Family Attached

MOI: 2.875
Days on the market: 39
MLS Home Price Index, sept 2018:777,600 $
Change in a year: +0.25%
 
Condominium Townhouse

MOI: 2.20
Days on the market: 31
MLS Home Price Index, sept 2018: 526,000 $
Change in a year: + 2.36%
 
Apartment

MOI: 3.37
Days on the market: 42
MLS Home Price Index, sept 2018:498,700$
Change in a year : + 8.35%
 

MILTON

Single Detached

MOI: 3.56
Days on the market: 28
MLS Home Price Index, sept 2018: 873,500 $
Change in a year +0.91%
 
Single Family Attached

MOI: 3.33
Days on the market: 25
MLS Home Price Index, sept 2018:622,800$
Change in a year: 2.26%
 
Townhouse

MOI: 2.66
Days on the market
MLS Home Price Index, sept 2018: 421,600$
Change in a year +5.08%
 
Apartment
MOI: 2.09
Days on the market: 18
MLS Home Price Index, sept 2018: 519,600$
Change in a year: +8.92%
 

BURLINGTON

Single Detached

MOI: 3.14
Days on the Market: 31
MLS Home Price Index, sept 2018: 824,700$
Change in a year -6.67%
 
Single Family Attached

MOI: 2.18
Days on the market: 20
MLS Home Price Index, sept 2018: 647,000$
Change in a year: +6.98%
 
Townhouse

MOI: 1.7
Days on the market: 27
MLS Home Price Index, sept 2018: $530,800
Change in a year: +5.59%
 
Apartment

MOI: 2
Days on the Market: 39
MLS Home Price Index, sept 2018: 422,900$
Change in a year: +7.99%

 
MISSISSAUGA


Single Detached

MOI: 3.89
Days on the market: 25
MLS Home Price Index, sept 2018: 971,400 $
Change in a year: +0.04%
 
Single Family Attached

MOI: 2.25
Days on the market: 23
MLS Home Price Index, sept 2018: 669,900$
Change in a year: +1.17%
 
Townhouse

MOI: 1.77
Days on the market: 21
MLS Home Price Index, sept 2018: 547,600$
Change in a year: + 2.74%
 
Apartment

MOI: 1.71
Days on the market: 22
MLS Home Price Index, sept 2018: 426,000$
Change in a year: +8.84%
 

Let’s go back to my main question: are we in a balanced market?

According to the different months of Inventory that I am sharing with you, we are not. Obviously regarding the quite recent 2017 March market where bidding wars were  the rule, we are in a much better situation for buyers, they can again negotiate in the transaction, this is the good news.

Sellers, don’t forget that in most cases we are still in a sellers’ market, and if you are targeting the current market price, no doubt you will sell and at a very good price.

I do know that many of you are wondering and even thinking that the market is not good, but don’t forget that prices have been going up to 30% year after year, let us be happy that as expected we are landing.

Only the detached homes in Oakville are higher than 4 months of inventory, the biggest reason of this number is the high end detached homes in Oakville, but not all detached in Oakville are.

And even here, for this segment of "detached homes" in Oakville, we stay in a balanced market.

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