Some good news for owners of Detached homes in Peel Region real estate market (Mississauga, Brampton and Caledon)!
Good news for anyone owning a detached home.
Number of Sales stats are still climbing up, continuing a rising trend since the beginning of 2108. Although the number sales is still way lower than the peak numbers of 2016 and 2017, it is now in a healthy trend range showing balance in the market.
Average Price is slowly crawling back up.
As the chart shows, although the price has not reached the 2017 highs, it is slowly creeping up towards it. What is important to note is that the price is moving along a trend line of support (red line). If the price was to break that support line it could signal further declines. For the most part, short of any government intervention or unexpected market developments, the average price of detached homes in Peel Region will likely continue to climb to, at the very least, just shy of $1M. After that, it’s anyone’s guess!
New listings are coming steadily.
The number of new listings coming to the market has already surpassed 2016 high and has even reached and bounced back down from the 2015 high (blue line). However, the danger here is that the number of new listings is clearly above the 5 year trend line (red line). It would be a good idea to watch this chart for any movement back into the trend region which would indicate more stability. 2017 high showed us what too many new listings flooding the market can do to the prices.
The number of active listings is up.
The number of active listings has been steadily climbing up since the beginning of 2018. This is largely fuelled by the increasing number of new listings, as the previous chart showed. To make it more interesting, the number of active listings is testing a very strong resistance level that was established in 2014 and tested twice already in 2017. Less active listings could create a lack of inventory and could again drive prices up, and on the flip side, too much inventory could cause prices to drop. This is one chart to watch.
Now some good real estate news.
The number of months of inventory on the market ha been steadily decreasing since the “crash” of 2017. More importantly, the price action on the chart appears to be forming somewhat of a trend (green) and has tested the 2015 peak level. Coming back below that level would be some strong positive new. As it stands right now, the news is still good – lowering months of inventory among increased number of listings shows that although the inventory is larger, a lot more buyers are entering back into the market and scooping up the available homes. This is precisely what I am seeing in the market every day while buying and selling in Mississauga and Brampton region in last few months.
Further good news for detached home owners.
Average Days on market has fallen dramatically since the beginning of 2018! We are clearly headed for the trend line and to make things even more interesting, the chart has tested and broken 2016 high. What does this mean for the market? If you are less days on the market, that means that the homes sold faster. The faster the homes sell, it can cause less inventory available (provided all other things remain unchanged), which in turn can cause increased prices (like 2016 and early 2017). So far, good news for Sellers.
Hope for buyers.
As for Buyers, Condos, Town homes and Semis can still be a real bargain. Not to mention Detached homes outside GTA, imagine a few month old, 3000 sf, Detached home with 2 car garage, 4 bedrooms, 3.5 bathrooms, 45 minutes form Toronto, for just over $700,000. Call me for more info. Need financing – no problem, our in-house mortgage broker with over 60 lenders can help even when you don’t think you can’t qualify. 647-892-5007