In the year following the Fair Housing Plan, some Toronto neighbourhoods have remained hot sellers’ markets – but that’s not necessarily the case everywhere in the 416. While around-the-block open house lineups are commonplace in some neighbourhoods, listings languish with nary an offer in others.
The number of days a home remains for sale is an important metric when gauging the level of competition in a given market. In addition to the average sale price, number of sales, and the sales-to-new-listings ratio (which determines whether a market is within buyers’ or sellers’ territory), there’s a lot both buyers and sellers can glean from the length of time a listing remains active.
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What Does Average Days on Market (DoM) Mean?
Simply put, the “days on market” (DoM) refers to the length of time a listing remains active on MLS before it is sold in a firm deal. The aggregate DoM for a group of homes in a specific area, over a certain timeframe, can also be calculated by adding up all the active days for all the homes for sale, and dividing that by the number of listings. Generally, a shorter average DoM indicates a sellers’ market, while a longer DoM suggests buyers’ market conditions.
The DoM also provides both buyers and sellers important insights for individual properties; a seller can use it to determine whether their listing is performing well in comparison to similar properties, while buyers can see whether the home has generated a lot of interest thus far.
A longer DoM may also suggest the sellers are in a position to negotiate, as the homes that linger on MLS can, in some instances, develop a stigma – buyers may think there’s something wrong with the home, and submit a lower offer, or pass on it altogether. This can be especially acute in the Toronto real estate market, where incredibly tight inventory means leftover homes stick out like a sore thumb.
In fact, DoM can be so important that a common strategy for sellers of overlooked homes is to pull their listing from the market altogether, reassess their marketing and pricing strategy, and relist at a later date, with a new MLS ID (and often a new price) to seize the chance to get back in front of buyers with a seemingly fresh listing.
Which Toronto Neighbourhoods Have the Shortest and Longest DoMs?
To identify the 416 neighbourhoods where homes are moving at the fastest clip, Zoocasa compared each area to the city average, which was 16 days in April, according to data released by the Toronto Real Estate Board.
The numbers reveal homes are moving at a slower pace compared to the same time last year: on average, condos are taking eight days longer to sell at a total of 18, while detached homes require an additional 13 days than they did in 2017, at a total of 22 DoM.
Fastest-Selling Toronto Neighbourhoods Compared to 2017
1: E06 – 12 DoM (-64%)
2: E02 – 15 DoM (-40%)
3: C02 – 17 DoM (-37%)
4: C04 – 14 DoM (-22%)
5: W03 – 13 DoM (-13%)
1: W01 – 7 DoM (-30%)
2: E02 – 7 DoM (-13%)
(TIE) 3: W02 – 8 Dom (0%)
(TIE) 3: C02 – 12 Dom (0%)
4: C04 – 12 DoM (9%)
5: C09 – 9 DoM (13%)
Slowest-Selling Toronto Neighbourhoods Compared to 2017
1: E08 – 31 DoM (+520%)
2: C03 – 19 DoM (+171%)
3: E05 – 20 DoM (+150%)
4: E10 – 25 DoM (+127%)
(TIE) 5: W04 – 27 DoM (+125%)
(TIE) 5: W07 – 18 DoM (+125%)
(TIE) 5: C07 – 18 DoM (+125%)
1: W05 – 31 DoM (+288%)
2: W04 – 26 DoM (+271%)
3: C12 – 31 DoM (+210%)
(TIE) 4: C01 – 17 DoM (+183%)
(TIE) 4: E08 – 17 DoM (+183%)
5: C06 – 22 DoM (+175%)