Overview:
The Pickering real estate market continues to capture the attention of would-be buyers because of it's close proximity to Toronto and enticing array of housing types and price points.
After a lethargic past 14 months or so, Pickering is experiencing a surge in real estate activity in May with year-over-year sales skyrocketing by 22%.
Seems like good news, right??
Not so fast, demand has far outpaced supply, leaving inventory significantly below normal levels for this time of year.
Seller's are reluctant to sell their property if selling means trading a mortgage with a favourable rate with another mortgage at the much higher prevailing rates in today's market.
The increasing demand and decreasing supply is putting a lot of upward pressure on prices much to the chagrin of potential home buyers.
Rising Sales:
After a year of declining prices since the rate hikes began in March 2022, Pickering has witnessed a significant 22% increase in year-over-year sales this past month. The uptick in sales likely reflects the rising confidence of buyers returning to the market and shows that most buyers believe that the worst of the rate hikes are now behind us.
From where I sit, buyers have been coming out of the woodwork in the past 60 days with most properties I've shown selling in multiple offers.
This is not ideal news for bargain hunters who were hoping prices would come down further.
Supply Challenges:
Despite the surge in sales, the Pickering real estate market is grappling with a scarcity of available properties for sale. The active inventory remains about 35% below what is considered normal for the month of May, making it a competitive environment for buyers. Buyers are desperate for more listings to hit the market and FOMO is starting to set in in most areas of the GTA.
Rising Prices:
The average prices in Pickering across all home types stands at $1.078 million. Notably, the average price for a detached home in Pickering is $1.391 million making Pickering the second most expensive market in Durham region behind only Uxbridge.
In the last month alone, average prices in Pickering are up by 2.1% and have gone up an unbelievable 15% since Jan of this year.
Those are big numbers which strike me as unsustainable in this era of higher borrowing costs.
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Pickering Year-Over-Year
May 2022 vs. May 2023
Average Prices
$1.078 Million
Number Of Sales
145
New Listings
227
Market Outlook:
As the Pickering real estate market continues to heat up, buyers and sellers alike should keep a close eye on the number of new homes being listed. If we suddenly had the same level of supply we had in 2021, there simply are not enough qualified buyers to purchase that many homes at these prices given the current mortgage rates. Lack of available homes to purchase remains the driving force behind this surge in activity we are seeing in Pickering Real Estate.
I currently have buyers looking to purchase the following properties in Pickering or Ajax.
- 3 bedroom or 4 bedroom Freehold homes. Must be move-in ready; Budget up to $1.5 Million
- 3 or 4 bedroom Townhomes/semis, detached. Move-in ready, budget up to $1.1 Million.
If you are thinking of selling, I may have the perfect buyer for you. Let's chat.
If you have questions about real estate I'd love to hear from you. I help people move to and from the Greater Toronto Area with my home base being Pickering, ON.
Contact me via email at info@deangibbons.com or by clicking here.