Patterson Vaughan Real Estate
2nd Quarterly Market Analysis 2020
Including:   Thornhill Woods,Valleys of Thornhill, Thornberry Woods and Dufferin Hills

Patterson Real Estate Market Synopsis

Ideally when we want to compare how a market is doing we should compare it to the same time period of another year, i.e. spring market to spring market. This is exactly what we have done, so we can now compare the present market to that of last year. So lets check how we are doing this year.....

When we look at the average number of sale, they decreased by 55% or 105 homes sold. last year 12 homes sold this year only 87 homes sold.  The prices increased on average by over $100,000 from $1,170,230 to $1,278,034 which is an increase of 9% which we would consider significant considering we are in a Pandemic. The average number of homes available for sale decrease from 218 homes last year to only 139 homes now, which means very low inventory. There were on average 260 less listings taken in this quarter than last year, at 512 last quarter and only 261 listings taken this year. The listings sold in 7 less days, taking only 19 days to sell as opposed to 26 last year. This would reflect more of a hot sellers market. The listing sold for almost full price or above at 99% of asking.

What does all this mean? Is/has the market recovering?

In the second quarter of this year the housing sales decreased by 55% which means less than half the houses sold this year than last year which we know was due to the Covid 19 Pandemic! After a two year correction in the market we are finally saw signs of recovery last year and then this. The prices have however increased, the prices are up by 9%, they increased from $1,170,230 to $1,278,034.  Both inventory and new listings taken decreased by 37% and 50%. When inventory (supply) goes down demand goes up. Similarly when supply goes down, prices usually increase.  With this being said purchasers now have less choice and the days of bidding wars and multipy offers has returned. Houses that are well prices are selling for close to full price or over asking.

Let me try to explain, a sellers market is one in which there is less than 4 houses for every sale. A balanced market is when there are 4-6 houses available for every sale and a buyers market is when there is more than 6 houses for every sold. So in this area we have returned to a sellers market because of the lower inventory. Prices have started to rise in this market which follows the laws of economics (supply and demand).  We don't know what the future has instore with respect to the Pandemic but we do expect the price trend to be upward in the market at least for the near future. Houses are selling for close to asking or above and often in multipe offers because the supply of homes available for sale is so low.  Those that played the housing lottery a few year back won, but the lottery was over, the prices that were we didn't think we would see again for a very long time, although they have not returned in all areas they have returned to just under in some areas.  At least the market has turned around and is going in an upward direction. Will the market continue going up? Most likely for the near future but the future largely depends on what will happen with this Pandemic.

We can consider this to be a seller housing market with a very low amount of inventory (less than 2 houses available for every house sold) and housing prices have starting to increase in most areas.  Why? Well, interest rates are still low; actually at a historical low because of the Pandemic. Foreign investment is high, especially because our dollar is lower then the U.S. dollar (foreigner bye with U.S. dollars making our housing a bargain at approximately 25% off).  We have a large number of immigrants(although this is on hold for now as our borders are currently closed. There is not a lot of rental properties so people are buying properties and renting them out. Condos are the new rentals. Children of baby-boomers are now old enough to be buyers in the market. We have a good economy compared to what is happening elsewhere in the world. Our Covid 19 number we seem to have a handle on. Why not invest in our housing market? It is a solid investment sure to go up. It may not be "a get rich quick fix" but over time it is a sound investment paying the best return.  

The market always has dips and peaks every number of years and the market always recovers and continues to climb. If your thinking of buying, now is a great time to get in as you can never time the bottom but with interest rates so low housing has become very affordable. If you are thinking of selling you may as well do it now, we can not be 100% sure of what pricesand inventory will be in the future and with the low inventory and multipe offer, sellers are doing well. 

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