Uplands, Thornhill Vaughan Real Estate
Market Analysis 2nd Quarter 2019

Detached Executive and Townhouses Sold

2018

Uplands Thornhill 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. Therefore, we have to compare how the second quarter of this year is doing compared to the second quarter of last year. Traditionally the spring market is the best market of the year. Let's see how this year's was.

In Uplands community, the sales this 2nd quarter of the year increased slightly to an average of 10 homes sold from 9 last year. It would appear at first glance that the housing price took a further dive by about $300,000, which is big, however, we must remember that the Uplands area has a mix of homes from townhouses to custom homes on large estate lots. If more townhouses than custom homes were sold, prices would appear to come down. When you average the selling prices they appear to go up if more larger homes are sold. In this case prices decreased considerably which could be due to more smaller homes selling and deflating the amount the houses sold for.  Based on some other areas we know that the prices did increase in some areas and some areas did not recover. The inventory of houses on the market decreased slightly from 34 homes to 33 homes. New listings also dropped from 56 listings to  45 listings or by 35%. The days a house took to sell was much shorter than last year 25 days as opposed to 20 last year. The percentage of sold price to list price however decreased by 3% meaning houses sold for within 10% of  asking price.

So, sales went up a little, prices went down by a lot. Less inventory meant less choice, so again people couldn't take their time deciding on new homes and had to rush to buy a house that they liked, therefore houses sold quicker. They didn't have to get into bidding wars for their purchase so houses didn't sell for over asking.  Because houses sold quicker and prices were down by so much, it is safe to assume that more smaller homes or towns sold than larger homes because the smaller homes sell quicker and would appear to make prices plunge. 

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 for every sale and a buyers market is when there is more than 6 houses for every sale. So in this area we still should have a balances market.  Prices have dropped quite a bit, or corrected itself in Uplands Thornhill.  As did the number of sales, inventory of homes and new listings. Houses sold under asking but they did  surprisingly sell faster than last year.  Year to date housing prices are up in some areas but not currently in Uplands. The correction in pricing may not be over or could be at its end. However this a great time to buy and if you need to sell you may as well sell now as we do not know what the future holds.  Interest rates are expected to go, even though recently they went down,  who knows?

When we look at the real estate market as a whole we still have a very strong and demand housing market. Inventory of home is very low. Houses are selling for almost full price and in many areas over asking in bidding wars again.  Why? Well, interest rates are still very low (even though they have increased). Immigration is high and people coming here need to have a place to live. Foreign investment is high and if foreigners are buying with U.S. dollars they are getting a 25% discount because of our dollar. We have a good economy compared to what is happening elsewhere in the world, rental rates are very low or nonexistent.  Baby-boomer's children are now old enough to enter to market and start buying.  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.

If you have a property to sell, what are you waiting for?  If you are thinking of getting in to the market or wanting a good investment.  Mortgage rates are still quite low.  Immigration is high and people coming here need to have a place to live. Foreign investment is high and if foreigners are buying with U.S. dollars they are getting a 25% discount because of our dollar. We have a good economy compared to what is happening elsewhere in the world, rental rates are very low or nonexistent.  Baby-boomer's children are now old enough to enter to market and start buying. Houses are and have always been a good investment for the long term. We always have dips and peaks. Why not get in now? If you are wanting to sell, keep in mind that houses are selling and for excellent prices. This is also not a bad market for you.  Prices could take years to return to what they were at their peak. So there is no point to waiting for what was. (Think of it as the lottery was won and you didn't play) but the market is still good!

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