By Michael McCann
As temperatures begin to drop our local neighbourhood real estate market also feel the effects of a cool down.
It’s not surprising though, considering 2015 was an exceptionally robust sellers’ market and now we are now experiencing a waning pool of potential home buyers, with most putting house hunting on hiatus until early 2016.
But is the lead up to the end of year the best time to take a holiday from house hunting? The quick answer: No!
Think of it this way. Most buyers who have been looking to purchase a home have most likely been in a half a dozen multiple offer situations.
The bad news is most have come up on the losing end. Have a read of my article regarding multiple offers.
This time of year most potential buyers are more focused on Christmas shopping and holiday parties than house hunting.
So from personal experience, and from talking with other realtors, at least 50% of active buyers are taking a break with no intention to start again until early 2016. Now this is anecdotal, but it’s a fair and accurate reflection of a shift in the market.
This is a limited window of opportunity for buyers savvy enough to continue looking for a home. Here is how I see it:
- With half of buyers sitting out it becomes less likely to get caught up into a multiple offer scenario
- Any properties presently listed have definitely missed the active fall market
- Not many agents and their buyers are out looking at homes, so sellers are definitely motivated to engage any warm body who walks through the door
- If a buyer does initiate an offer, it will it most likely be one-on-one negotiations…which always makes for the best deal for both parties.
I know it is cold out, but if you are serious about buying a home then grab your gloves and scarf and go see what’s out there.
One of great advantages of seeing houses at this time of year is you get to experience our neighbours holiday decorations. And that always puts me into the spirit of the season.
Let’s have a look at Birchcliff`s September and October stats:
Birch Cliff – Cliffside Home Sales in Sept. 2015 – 19 homes sold
Source:Toronto Real Estate Board. Excludes commercial properties, condos and vacant land.
Birchcliff/Cliffside
- September 2014 – 22 sold and we had 19 sold in September 2015 – a difference of 3 homes
- September 2014 the average sold price was $743,616 while September 2015 the average sold price came in at $617,895 – a decrease of 17% (It should be said that in 2014 two Birchcliff homes were sold for $2.3million and $1.5 million and if we remove them out of our statistical mix the average September 2014 price would be a much more realistic $629,833.)
- September 2014 it took on average 12 days and in September 2015 it took 16 days
Toronto Real Estate Board
- 8,001 sales in September 2014 with September 2015 showing 8,200 sales – Up by 2.5%
- $574,424 average selling price September 2014 with September 2015 coming in at $627,395 – Up by 9.2%
- September 2014 it took an average of 25 days to sell a home where as the same month this year it took 22 days
Birch Cliff – Cliffside Home Sales in Oct. 2015 – 23 homes sold
Source:Toronto Real Estate Board. Excludes commercial properties, condos and vacant land.
Birchcliff/Cliffside
- In October 2014 we had 20 homes sold and in October 2015 we had 23 – an increase of 15%
- October 2014 the average sold price was $727,600 while October 2015 the average sold price was $719,753 – statistically a minor drop of 1%
- In October last year it took on average 16 days and this year it took the same 16 days
Toronto Real Estate Board
- 5,512 sales in October 2014 and October 2015 showed 8,804 sales – Up by 3.4%
- October 2014 average selling price was $587,945 and October 2015 came in at $630,876 – Up by 7.3%
- October last year it took an average of 25 days to sell a home where October of this year 22 days
According to the Toronto Real Estate Board, our local housing market is defined as Birch Cliff/Cliffside and the boundaries can be seen below.
View Birch Cliff / Cliffside in a larger map
