Sunday, 13 May 2018
How long does it take to sell a house?
When I started in real estate in 2005, the average time on market was around 40 days, which was said to be the historical norm. Of course, time on market fluctuates depending on market conditions, but also by area.
For example, in 2008 and 2009, during the "Great Recession" as they were calling it, average time on market was significantly more in suburban areas - it was much more difficult to sell a home in Ancaster or Flamborough. But in East Hamilton, even at the worst of the recession, there were neighbourhoods where the average time to sale was less then 21 days. This was largely an influence of investors and home buyers from the GTA looking this way for better value and security than they felt they would get in Toronto. That seems to have been the beginning of the influx of Toronto buyers.
And then that increased interest plus a general market recovery made the Hamilton real estate market very hot for a few years. The speed of properties selling was surprising city-wide, with many properties selling in the first day with multiple offers. In April 2017, the average time on market was only 16 days.
Since then the market has cooled quite a bit, especially in the last few months as buyers are becoming wary of increasing interest rates and losing buying-power with changes to mortgage rules. However, even though sales volume has dropped from the heated conditions last year and even below the ten year average, properties are still selling reasonably quickly. Time on market for April 2018 was slower than last year but still only 26 days - two weeks quicker than the norm when I started.
As I always say, there's no crystal ball, but the average time on market suggests to me that there is still a good market for sellers, albeit not as wild as it was. If you're not selling in the average time for your area, you might need to look carefully at your pricing or property presentation. (that's true in every market really)
Give me a call or email if you'd like to know what the average time on market is for your area, or if you'd like a free value assessment to know what you might sell for in today's market.*
*Not intended to solicit clients currently under contract.