February 2018 Market Intelligence

We sold 216 units in February which is a 41% increase from January 2018. Our average sales price in February was $1,032,174 which is a 2% increase from January where we had a $1,011,950 average sales price. We now have 2.9 month’s supply of inventory as compared to 4.1 month’s supply in January. These are strong and encouraging numbers. 14% of all homes sold in February were sold at or over the asking price, compared to 10% in January.

What you will most likely see in the news about home sales is that home sales are plummeting year over year from February 2017 with 346 sales at an average price of $1,300,914 down to 216 units at an average price of $1,032,174, which is a 37% decrease in volume and a 20% decrease in average sales price. While this is accurate we need to look at a longer time frame to realize what an incredible anomaly the spring of 2017 really was in terms of sales volume, low inventory, and ridiculously high selling prices with over 90% of all homes selling over asking prices.

If we delete 2017 altogether, we are still 12% higher in average price compared to 2016. Our current sales volume and month’s supply is quite similar to Feb 2015. If we continue to mimic 2015 we can expect about 300 sales this March. It will be interesting to see if our month’s supply decreases or increases. If March first is any indication it would seem that our supply will increase dramatically. There were lots of new listings that came on to the market yesterday.

Month’s supply is in my opinion the most important metric in determining price. A month’s supply of less than 3 indicates a seller’s market, between 3-6 is a balanced market, and over 6 month’s supply is defined as a buyer’s market. 

At the time of this report (March 2) there have been 159 new listings in the last 7 days and 77 sold in the last 7 days, which puts us on pace for 308 sold. As you know there are many different market segments in this town and to get a in depth look at your market segment call, text or email me any time. 905-399-4269 or michaele@remax.net.