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Market Analysis

Price Stability: Over the past year, the real estate market has witnessed a remarkable stability in median prices, signaling a market that has found its footing after a period of fluctuation. Since reaching a low point in May of the previous year at $725,000, median prices have shown signs of recovery, with a current median price of $741,000, suggesting a stable market poised for resiliency.

Sales Volume:  Despite fluctuations influenced by seasonal variations, the market has experienced a year-over-year decrease in annual sales volume. However, the onset of 2024 has brought promising signs, with a notable 27% increase in sales volume in the first month compared to the same period last year, hinting at a potential resurgence in market activity.

Inventory: Last month witnessed a surge in new listings, marking the highest influx of properties hitting the market in the month of January since 2019. With both sales and listings rising in similar proportions however, (27% and 24%, respectively), the inventory remains relatively unchanged at 5.9 weeks, reflecting a continuation of low supply market conditions, which favour sellers.

Days on Market (DOM): While median and average DOM show slight increases, indicating properties are taking a bit longer to enter pending sale status, market dynamics have shifted slightly. The increase in conditional sales is influencing this trend, with some buyers successfully having conditional offers accepted. Currently, 91 properties are under conditional contracts in the region a significant shift from recent years. Buyers should be cautious about assuming increasing DOM means they have an increasing amount of time to view a property, as this in not likely the case.

Pricing Dynamics: Over the previous 12-month period pricing strategies have remained consistent, with properties generally selling slightly above their listed prices. However, short-term trends indicate a shift, with January witnessing the lowest list to sale price average (100%) since January 2019. The median list to sale price in January sat at 98.7%, the landscape has changed, more properties are now selling for less than their listed price, despite relatively stable list prices. Be cautious about reading too much into this however, as there is still a large segment of the market selling well above list price, the highest list to sale price in the region last month was 131%.

Segment Analysis: Both detached and attached properties are exhibiting similar trends in median prices, DOM, average prices, and sales volume. This synchronized performance suggests a similar market conditions across property types.

 Recent Market Activity: The recent upticks in sales activity, new property listings and inventory levels, may indicate some stabilization or even recovery in the market. Whether or not these market trends will continue will depend on how quickly buyers return to the market. There is much speculation about a resurgence of demand as the future of mortgage rates becomes more predictable and buyers attempt to purchase before prices begin to rebound.

Recommendations for Homeowners:

Pricing Strategy: Given the stability in median prices and consistent pricing dynamics, homeowners are advised to set competitive yet realistic listing prices. Check out our article on Pricing Psychology.

Market Awareness: Stay informed about market trends and fluctuations to make informed decisions regarding timing and pricing when listing your property.

Property Preparation: Ensure your property is well-maintained and presented attractively to appeal to potential buyers, especially in a competitive market environment, is key to a successful sale.

Flexibility: Understand that market conditions can change rapidly, so be prepared to adjust strategies and expectations accordingly.

Overall, the real estate market is showing signs of stabilization and recovery, with stability in prices and moderate sales activity.  However, uncertainties loom, and the future trajectory will depend on various factors, including buyer sentiment and mortgage rate fluctuations. In this dynamic environment, homeowners are advised to stay informed, maintain flexibility, and adopt strategic approaches to maximize their opportunities in the real estate market.