The summer market continues stronger than the summer market in the last 6 years with rising sales,
falling inventory and prices firming up moving solidly into a Seller’s market. It is the right time to get your
home sold. Looking at the early August month to date number, the strong summer market continues with
sales up about 16% over August 2013.
Sales - The total sales for the 12 months ending July 2014 rose to 967, up 26% from the 12 months
ending July 2013 and the highest volume of sales in the last 7 years since 2007.
Inventory - The average monthly inventory of single family homes dropped down 8% to 592 for the last
12 months ending in July 2014, the lowest average inventory we have seen in the last 6 years. Inventory
has not been this low since 2008 just before the start of the recession triggered by the US banking crisis.
Prices - Average median prices continue to rise. At $345,251, average median prices for the last 12
months ending in July 2014 rose 5.8% over average median prices for the 12 months ending in July
2013. This increase is for average median prices across the board and is largely due to the fact that
prices on higher end homes have been reduced so much (some as much as 25%) that sales are now
starting to recover. This is causing the illusion that prices are increasing in all home categories and that is
definitely not true.
For instance, right now some price ranges in some neighbourhoods are starting to rise slightly but other
price ranges have just stabilized or are still dropping slightly. Therefore, overall average price in any given
marketplace cannot accurately predict what is happening. I have found that using an HPI (Home Price
Index) works best. This HPI considers all the sales of a typical house in a certain area and compares
them to the same type of houses sold in the previous years. We find when we do an HPI that house
prices are doing different things in different areas and in different price ranges. I would be happy to do an
HPI evaluation on any property you have. Simply give me a call or email.
The rate at which our inventory is being absorbed by sales rose to an average of 13.39% over the 12
month period ending July 2014, the highest in the last 6 years. At the end of July 2014, there was 5
months of inventory available on the market. This is considered a balanced market trending towards
favouring Sellers over Buyers and putting more upward pressure on prices as inventory tightens.
From these numbers, it looks like we can expect the market to continue to rise as we continue in to the
busiest summer season we have seen in 7 years. Sales for the first week of August 2014 continue to
show improvement with a 16% increase over the same time period in August 2013.
The market over the next 6 to 12 months will be characterized by continued increasing sales and lower
inventory moving more rapidly towards a market that now favours Sellers with more competition from
Buyers and higher prices. Prices will continue to rise as consumer confidence gathers momentum and
brings with it more Buyers.
If you have any questions about the market, please feel free to contact me at any time. You can go to my
stats page on my web site to view the graphs and fully detailed data.