Market Update February 2021
Dated: February 2 2021
If you are actively looking for a home right now you may have noticed at the end of last year and the start of January we were hurting for inventory. The start of this month we were sitting at 0.29 months of inventory.
For those who are not sure what MOI or months of inventory is, it's an important measure of the supply and demand equilibrium in the housing market and how long it would take for us to sell out of homes. I look at the past 90 days of sales activity and with that information we can tell how strong a certain type of market is. It also helps me spot trends and that information can be used for forecasting. So When I say it's a sellers market or buyers market basically we are figuring out where does the negotiating power for the most part lie. 0.29 Months of inventory also means that there is a week of inventory, so if no new homes come on the market we will be sold out of homes in a week. Indicating an extremely Strong sellers market.
As of last Monday we moved up from 0.29 months of inventory that we had at the start of the month to 0.47 so almost two weeks. We have been trending upwards as the week before last we were sitting at 0.41 months. The last week of January had quite the increase in a active listings. It shot up from 219 to 241 in just seven days. Today we are continuing to trend up with 253 and with a significant drop in Our 90 day sales from 1730 - 1690 propably due to the low inventory experienced at the end of 2020 we are now up to an even two weeks (0.50 MOI). We are still in a very aggressive sellers market but at least we are trending in the right direction which if it continues….. should mean increased opportunities for you buyers out there.
Prices….. So when determining prices for each sub category I tend to rely more on median pricing rather than an average price. I do this because we can have homes that are selling for over a million plus dollars. Matter a fact 39 homes sold for over a million dollars in the past 30 days alone which screws up an average price when we are looking for the central tendency. I also like to look at 3 months median prices and then get an average of that so we can see and forecast trends and not just one off month.
Single detached homes look to be a very hot product still. They staying on the market for around 7 days, but in my opinion they would sell much faster if people were not using the under value and hold offers strategy. Our 90 day Median average sales price increased from 675 900 in December to 714 916 as January exceeded previous months of performance by quite a bit…..
Semi-detached homes have also increased at roughly the same rate with last month's 90 day median price at 540 000 compared to Januarys 570 000.
Lastly Condos... With the Waterloo region price points it typically is the Realistic starting point for most. It appears that inventory is keeping up with demand. With October being an exception at 402 000 the last 3 months have held fairly steady between 410 to 413 median sales price.
If you have any questions or want to know how much your home is worth I'd be happy to help you out more. Later this week we are going to start talking more about individual neighbourhoods. What they have to offer and we are going to start with one of my favorites Williamsburg.
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