Gary Doyle
Sales Representative
Realty Executives of Sudbury Ltd.
I’m often asked, “How is the real estate market?” Homeowners are always curious as to the growth of the value, in most cases, of their largest investment. Whether you are a renter, homeowner or just leaving the nest, everyone has a vested interest in the real estate market. Vacancy rates affect not only how much a renter will pay for rent, but it also impacts purchase value on rental income property for investors. So, although you may not currently own a home, the real estate market does have an impact on your life.
You may get a variety of responses to the above question… the response may be as short and quick as “good” or “oh, I am very busy”. But I always like to give people a little more than that.
This is where our industry is driven by statistical analysis. You can get a snapshot of what the market is doing with a quick calculation – take the number of sales and dividing it by the number of new listings over a certain period. This is a more simplified version of the Absorption Rate calculation that we use to get a general read on the current state of the market and its trajectory.
For example, year to date in 2019, there has been 2634 sales and 4610 new listings in Greater Sudbury up until the end of October. This indicates that 57% of the homes listed have sold during this time.
So, what does that tell us? The ranges below give us a very good indication as to the current state of the market.
So, as you can see, year to date, we have experienced a balanced market, trending towards a sellers’ market. For the last 3 months, the ratio of sales to new listings has been 68%, so clearly, we have seen a shift to a sellers’ market. October numbers just in, we are seeing an almost 80% ratio, so the trend continues.
So next time you see me and ask how the market is doing, I will not only let you know, but I will most likely throw out there “hey, it’s a great time to sell!”
Now, buyers, don’t panic. Although the market has shifted in favour of sellers, you don’t have to overpay for a property. Just be sure to work with a Realtor® that is on their game and has a pulse on the market as things are moving at a very fast pace. Fast pace we like, overpaying we don’t!!
Whether you're buying or selling, we're on our game to help. Even if you're just curious as to the current state of the market, I'm always here to answer all the questions you have! Never hesitate to reach out at gdoyle@realtyexecutives.com.
Contributed by:
Gary Doyle
Cell - 705.691.6166
Office - 705.586.3334
gdoyle@realtyexecutives.com
Disclaimer: The views and opinions expressed in this article are solely those of the author(s) and do not necessarily reflect the official policy or position of any other salespersons, staff or affiliates of Realty Executives of Sudbury LTD. Brokerage, Realty Executives International, the Sudbury Real Estate Board, Ontario Real Estate Association, Canadian Real Estate Association or any of their subsidiaries. For any concerns pertaining to the content herein, please contact me immediately at gdoyle@realtyexecutives.com.
