3 THINGS YOU SHOULD KNOW ABOUT MONTH OF INVENTORY.

Friday Jun 05th, 2020

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  • SOLD OUT -  when will be no more homes for sale? In June of 2020 eight detached homes sold in Parkwoods-Donalda. If the homes keep selling with the rate they did in June and no more new listings came on the market,  then in 1.8 month there would be no more detached homes for sale. No townhome was sold since there was none on the market. Right now there is one townhome on the market. In May th eone townhome that was for sale, sold within hours over the asking price with multiple offers. Most likely the one for sale right now will sell very fast as well, since there is no competition. Four semi-detached homes sold last month and there are only 2 for sale right now, with no changes to the market, and no new homes being listed for sale, judging my last month sales, these homes will sell within 15 days. Ten  Condos  are for sale right now, the month of inventry is for the condos in the areais   one month.  In a  healthy balanced market it will take 5-9 month to sell a home. In comparison to last month: Condos: the month of inventroy slightly incerased ( by 0.1), Semis: the month of inventory decreased ( by 0.1), detached homes: the month of inventory decreases (by 2.5). The semis and detached homes sold faster than the month before. 
  • Who can influence "Month of Inventory"? In a way it is the buyers and sellers who influence it.  Buyers: how fast they act and purchase. If there are  more buyers, looking at the same type of home in the same area, than homes for sale, the month of inventory gets very low - like it happened last month in this area.  Sellers: if more sellers decide  to put up their homes for sale at the same time and the number of homes on the market is higher than the number of buyers looking to buy it may take longer to sell and the month of inventory will increase. 
  • Is 1-2 month of inventory a sellers market? Absolutely.  In Parkwoods-Donalda we are experiencing a seller's market right now. How long will that be the case? As long as the number of buyers outnumber the number of homes for sale. As we have seen over the years, Real Estate is a sound investment. Of course there are times when the prices of homes go down, but generally the prices of homes in Toronto over the years have gone up.