Navigating the York Region Real Estate Market: August 2024 Update
Thinking about buying or selling property in York Region? Staying informed on the latest market shifts is key to making confident decisions. Realtor Kathleen Miller breaks down the August 2024 real estate statistics for York Region, painting a picture of a market finding its balance.
Market Balance: Months of Inventory (MOI) Stays Steady
A key indicator of market health is the Months of Inventory (MOI). For the second consecutive month, York Region sits at 4.7 months of inventory.
- What this means: We remain firmly in a balanced market.
- Context: Less than 4 months typically signals a seller’s market (high demand, low supply), while over 6 months indicates a buyer’s market (more supply than demand). 4-6 months suggests equilibrium between buyers and sellers.
This consistency points towards market stabilization.
Sales Volume and Pacing
- Homes Sold: 895 homes were sold in August 2024, a slight dip compared to 921 homes in August 2023.
- Average Days on Market (DOM): Homes took an average of 28 days to sell, up from 23 days last month and 20 days last year. This suggests a slightly slower pace, potentially requiring sellers to be mindful of pricing strategies.
Pricing Insights: Average vs. Benchmark
While the average sale price provides a snapshot, the Home Price Index (HPI) Benchmark Price offers a more accurate view of typical home value trends.
- Average Sold Price (Aug 2024): $1,297,868 (down from $1,339,742 in Aug 2023).
- Benchmark Price (All Home Types, Aug 2024): $1,372,500 (a 4.58% decrease year-over-year).
- Benchmark Price (Detached Homes, Aug 2024): $1,627,600 (a 3.58% decrease year-over-year).
- List-to-Sale Ratio: At 99% (down from 101% last year), properties are selling very close to their asking price, further reinforcing the balanced market conditions.
The HPI Benchmark helps filter out fluctuations caused by a changing mix of homes sold (e.g., more luxury sales one month skewing the average high). The modest year-over-year decrease in the benchmark indicates market cooling but avoids the potential distortion seen in simple average price comparisons.
Mortgage Rate Relief on the Horizon?
Following recent Bank of Canada rate drops and a softening bond market, mortgage rates are becoming more favourable.
- Current 5-Year Fixed Rates: Ranging approximately from 4.14% to 4.79% (as of early Sept 2024, via Wowa.ca).
- Outlook: Economists anticipate further rate decreases through next year.
Buyers and those renewing mortgages should shop around, as better rates are becoming available.
What This Means For You
The York Region real estate market in August 2024 continues to show signs of stabilization, operating within a balanced territory. While benchmark prices have seen a modest dip compared to last year, emerging favourable mortgage trends could boost buyer confidence.
Key Takeaways for August 2024:
- Market Type: Balanced (4.7 MOI)
- Sales Pace: Slightly slower (28 DOM vs 20 last year)
- Pricing: Benchmark prices show a slight year-over-year decrease; homes selling close to asking (99% list/sale ratio).
- Mortgages: Rates are softening, with potential for further drops.
Remember, real estate is hyper-local. While these regional stats provide valuable context, trends can vary significantly by neighbourhood. Your personal situation and goals are unique.