Here is my recollection of the timeline we saw with Real Estate sales over the past few years.
In 2017 we saw a drop in values after our Provincial Government implemented a foreign buyer tax. The reaction to the market was swift and brutal. From April until July 2017, values plummeted 25% in Oshawa alone. Sales dropped from 283 to 154 with inventory doubling in the same time period. Then the craziest thing happened. Once the market bottomed out it started to rise, and it did from late summer 2017 until February 2022. To give some perspective, Whitby home prices were $734,000 at the end of summer 2017 and in February 2022 they were more than $1,540,000. Bidding wars were common, showings were hard to book with most time slots taken by showing agents as soon as the property came on the market and Buyers were tripping over themselves to buy property.
With the mortgage rates beginning to rise in 2022, we saw a reversal. Inventory of homes for sale increased, sales decreased and bidding wars were a distant memory.
What I observed after the summer market of 2017 was a return to a time when locals were shifting around, buying up, down and moving out of the area due to retirement or a job move. As we moved into the beginning of 2020, we saw a huge influx of Buyers coming from Mississauga and Brampton. Why? The average detached home in Mississauga at the beginning of 2020 was $1,188,00 and in Oshawa $610,000. Hence a west-end agent made the comment to me, “Oshawa is having a fire sale on homes.” Most of the Buyers we noticed were coming to Durham Region for the low prices of homes and the result was, you guessed it, bidding wars and escalating prices.
This is not about blaming out-of-town Buyers, just reflecting on how Buyers from different areas, who are used to prices much higher than we have in Durham Region helped to impact our run-up in values. Then it mostly ended. Again, the movement seemed to be locals moving around the area and it looked like Durham Region became a place where locals were the Buyers. Entering 2023 many of us have the feeling of Déjà vu and a return to a time of brisk sales.
In the past 3 days, 30% of the properties listed for sale in Oshawa, Whitby and Clarington are holding offers hoping for a bidding contest and in the past week 55% of all homes in Clarington sold for more than the asking. As optimistic as this appears when you dig a bit deeper we see that not all homes are selling in bidding contests. A 3-day snapshot of newly listed homes in Oshawa, Whitby and Clarington shows that there were 34 new listings that hit the market. However, of the 34 homes, 9 have attempted to sell twice, 4 have tried to sell 4 times and one unfortunate Seller has attempted to sell 5 times. Our market is somewhat “unforgiving” when it comes to homes that show poorly, are overpriced, or are not marketed effectively. This is truly a market where a realtor with experience is hanging sold signs.
It does appear that we are trending back to a similar market that we had over the past few years, so the question of where the Buyers are coming from comes up. As a way to determine if it is local or out-of-town Buyers looking at homes in Durham, I am thinking about a home I have for sale. I placed this home for sale last week and looking at the 35 showings we have had on the market only 2 of the agents are from Durham Region. Most are from the west side of Toronto. It appears we are attracting west enders again.
Comparing prices today, and how Mississauga differs from Oshawa, the average detached home in Mississauga is selling for $1,380,000 and in Oshawa, the average is $838,000. Home prices seem to be still a bargain to Toronto Buyers.
If you are planning on getting your home sold, here are a few ideas on how to maximize your sale price:
- List your home with a local agent.
- Ensure the agent you choose understands how to market to the Buyers coming from Toronto.
- Have the best quality drone, virtual tour and still pictures done by a professional photographer.
- Have a local marketing strategy, targeting local Buyers.
- Offer the highest quality brochures possible and include floor plans.
- Have the home professionally staged.
- Make certain the home sparkles when it hits the market. Shine sells.
- Create a team with the sellers. A sale process moves much more smoothly when the Seller, Agent, and stager work together to create an appealing space that is marketed to Buyers who are serious about moving.
With the market starting its traditional busy spring flurry of activity (this begins in late January typically,) we are seeing a lot of movement and the feeling a strong spring market is on its way. Sellers seem to be in two groups: one with smiles and the other frustrated.
If you are planning a move, choosing an agent who has worked in markets like the one we have today is your best chance of selling and not sitting. It takes a strong marketing strategy, a home that sparkles and proven negotiating skills to cause Sellers to smile. I am happy to share what I have learned over the past 38 years selling homes in Durham Region.