Posts Tagged ‘GTA real estate’

Days on market in GTA a critical indicator – Guest Post
Posted by Don Campbell | November 27, 2016
Days on market in GTA a critical indicator – Guest Post

Here’s a simplified way to look at Canadian housing markets:

1. Average price of real estate is a lagging indicator,
2. Economic Fundamentals are a leading indicator
3. Days-on-market are a market trend indicator

Yes, of course there are many other factors that play into the headline grabbing numbers that make the GTA housing market seem out of control. These include the “Places to Grow Act”, the condo demand cycle, transportation improvements, in-migration and on and on.

But, today we are going focus on a statistic that is either not spoken about much… OR used incorrectly.

In this “Special Guest Post” we have asked our friends at TheRedPin to analyze the GTA for days on market, including trends of specific neighbourhoods. Enjoy this look into the future direction of the GTA market:

Days On Market – What’s Really Going On in GTA?

While most headlines are quick to zero-in on property prices, and how much they spike or drop year-to-year, days on market is just as useful an indicator of where housing is – and where it’s heading.

A measure of how fast or slow a property for sale gets snatched off the market by a buyer, DOM is key to deciphering whether conditions are those of a buyer’s or seller’s market and serves as a litmus test of where the relationship between supply and demand lies.

TheRedPin, a Toronto-based full service real estate brokerage, recently broke down some interesting facts around days on market specifically in the GTA.

  • Where do homes spend the fewest days on market in the GTA?

 After tracking down 17 major cities, TheRedPin highlighted how fast homes sell across the Greater Toronto Area. To keep an even playing field, the brokerage only factored in detached homes rather than pooling all home types together.
Click on this picture to get full interactive map

Click on the Map above to see the full interactive map

 In Q3 2016, the cities of Whitby and Ajax saw detached homes sell the fastest, with an average of just 10 days on market. On the other end of the spectrum, King City and Burlington saw detached properties spend the longest days on market, with average DOM hovering around 30 and 24 respectively.

  • Days on Market and Seasonality

Just as prices can drastically fluctuate based on seasonal highs and lows during the year, the same is true for days on market.

For example, in the frigid cold winter month of January, where the real estate market experiences a considerable slowdown, average days on market tends to plummet. Especially when compared to the ultra-competitive spring market.

When isolating 6 years of GTA housing market statistics, TheRedPin found:

Real-Estate-Days-on-Market-Statistics (1).png

Higher days on market suggests homes take longer to sell, competition isn’t as fierce and conditions are more in favour of buyers. Therefore, house hunters in search of a deal can often use seasonality to their advantage by strategically timing their purchase to fall in winter.

In fact, when highlight how average sold prices compare between January and May, TheRedPin found a $60,000 gap.*

Sellers who put their property on the market in winter are usually more motivated to sell given they’re choosing to list in the off season. Whether it’s due to a sudden move for a new job or for family reasons, sellers in January tend to want to flip their property quickly and are often willing to take a dent in the asking price to do so.

  • Days on Market and Home Type

When pitting the detached family housing market against condominiums, some clear trends arise.

For one, resale values for detached residences outpace the high rise market considerably.

In Q3 2016, detached homes in the GTA saw values climb a whopping 22 per cent year-over-year. Condo apartment on the other hand, saw a far more moderate but still impressive 9.6 per cent increase.

In a similar pattern, days on market for detached homes sits just below 15, while DOM for condos hover around 25.

As with almost everything – supply and demand have a huge role to play. Tighter inventory in the family homes sector means that not only do values climb faster compared to high rises, but properties also take considerably less time to sell too.

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Toronto, Don’t Make The Mistakes Vancouver Did
Posted by Don Campbell | August 16, 2016
Toronto, Don’t Make The Mistakes Vancouver Did

Ontario’s GTA housing market is becoming as super heated as Vancouver’s, however it is critical that the discussion and debates of solutions for Toronto region do not degenerate to the gutter level that Vancouver’s did. This is why…

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The GTA’s Hottest Real Estate Markets – A Different Approach
Posted by Don Campbell | February 13, 2016
The GTA’s Hottest Real Estate Markets – A Different Approach

Taking a different approach to analysis, TheRedPin research team divided and categorized the GTA housing market looking for the hottest regions.

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Which Toronto Intersections Are The Most Strategic For Investors?
Posted by Don Campbell | September 22, 2015
Which Toronto Intersections Are The Most Strategic For Investors?

Within the booming Toronto Condo market a strategic investor must ensure they are choosing the right building in the right location in order to ensure they will receive the strongest value gain over the coming 10 years. In this post you will see the research behind the ‘best’ neighbourhoods located around the most strategic intersections in Toronto.

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Ontario Real Estate’s Future – Not as it seems
Posted by Don Campbell | March 26, 2015
Ontario Real Estate’s Future – Not as it seems

The Ontario real estate market continues to shift as the economy does. Is Downtown Toronto too over built? Is the Tech-Triangle poised for another boom or glitch. In this audio and podcast we discuss regions across the province to reveal some of our latest findings

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