Homes in Ontario were moving relatively slowly at the start of the year. With uncertainty surrounding the real estate market through the latter half of 2022, buyer anxiety carried over into the start of this year.
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However, as interest rates were put on a short lived pause by the Bank of Canada, some confidence was restored in buyers looking for their next home, meaning the pace at which homes are being sold has picked up – but by how much? To find out, Zoocasa analyzed 23 different cities across Ontario in an effort to find out where homes were moving the quickest in the province to determine which markets are currently the most competitive.
Homes Are Selling Twice as Fast as They Were Six Months Ago
Zoocasa last analyzed the property days on market of these Ontario cities in January. The shortest amount of time properties were on the market was 25 days in the Waterloo region. This time around, homes are moving the quickest in Ajax and London with just 11 days on market – a massive decrease of 56%. In fact, there are only two cities where properties are spending more than 25 days on market, Caledon and Niagara Falls, where homes are on the market for an average of 31 days. This is nearly half the highest number of days on market in January, where homes in Caledon and Orangeville were listed for an average of 60 days.
The greatest decrease is in Orangeville. In December, homes were spending an average of 60 days on the market, but that figure has shot down dramatically, where they are now selling in an average of just 14 days. The next largest decrease is in Milton, where homes are selling 33 days quicker than they were in January, falling from an average of 47 to just 14.
Why are Homes Selling So Much Quicker Today?
Much of this resurgence is due to the stability in mortgage rates we saw in spring. Interest rate hikes had paused until June, giving buyers encouragement to step into a more certain market. Last year when interest rates were increasing rapidly, many buyers took to the sidelines to wait out the market until they had some clarity on its direction. This spring, many sideline buyers finally felt they had waited long enough.
Equally, there is still a large supply issue, meaning that what little supply is available has great competition, so buyers are having to move a little quicker to snap up their ideal home. In Ajax last month there were just 1.2 months of available inventory. The impact of the heightened demand and lacking inventory is clear when you look at how much quicker homes are selling now as opposed to the start of the year, as well as at the steady climb of home prices.
Regardless of which Ontario city you’re considering moving to, we are confident we can find something that fits your lifestyle. Contact us today and let us help you find your dream home.
