Real Estate Market Update – May 2012
May continues the trend of 2012 with modest increases in both the number of sales & in the average sale price over the month of April. We aren’t experiencing any major spikes or dips, and the numbers indicate the real estate market in Durham is strong, healthy and balanced.
Another number to keep an eye on is the Months of Inventory stat. This number continues to decline which shows that the number of homes available for sale is declining based on the number of buyers for those homes. This is putting some pressure on home buyers and we have started to see some competing offer situations.
The month of June is historically a strong month for home sales so we are expecting to see a modest increase in the number of homes sold as compared to May and then sales should level off for the summer months as people take their holidays.
Another factor to consider when looking into our real estate crystal ball is the effect of the closure of GM’s Consolidated Line at the Oshawa assembly plant on the housing market. It’s difficult to say what effect this announcement will have on the real estate market in Durham Region. The last time a decision of this magnitude was announced was in 2009 when GM closed the Truck Plant and at that time we were also dealing with the downturn in the US economy. The Durham Region Association of REALTORS® 2009 statistics show that overall the market actually experienced an increase in the number of sales and in the average selling price of homes over 2008, which speaks to the strength and diversity of the Durham Region economy. At the end of the day, the impact of the GM decision on the Durham Region real estate market will depend on the confidence that home buyers have in Durham Region as a whole.