2017 Patterson, Thornhill and Vaughan Real Estate Update
Including: Dufferin Hill, Thornhill Woods and the Valley's of Thornhill
We have seen an unbelievable real estate market in this area over the past 15 years. From the new development or the increase in prices these areas are virtually new to the Vaughan area. From day one these neighbourhoods have been well designed and very popular to the buyers. New development has been gobbled up the moment the developments went on the market. The main problem is that new housing has slowed due to a lack of land and a supply and demand issue has come into play over the past few years. This has forced prices up and made it virtually impossible for 1st time buyers to enter this market. So what is on the horizon in this area?
If we look at the 4th quarter of 2016 and compare to the year before we see that the higher prices has not effected this area at all. House sales still increased by 16%, prices continued to climb by 18% and homes were selling in less than 2 weeks. These stats indicate an extremely strong selling market that shows no sign of weakening. But, is this really the case? We are beginning to see a small chink in the armour in the category of inventory. New listings were very similar to last year but this was the first time that the new inventory did not go up. We saw a 33% decline in inventory at the end of the quarter. This is the reason that the prices climbed as much as they did. People will pay more to get into these great family communities even if it means paying a bit more. The average home price was close to 1.2 million. This will continue to rise in the short term as long as interest rates remain low.
So where is the market going in the near future? This will depend on many issues. Will inventory remain low? Will interest rates remain low? Will buyers continue to pay the prices in this area and is there a ceiling to the prices? No one can answer these questions but I can comfortably say we are not in a bubble but an inventory crisis in this area. I will be very curious in a few weeks when the 1st quarter numbers come out as to where we will be with prices and inventory.
My biggest piece of advice at this moment is that if you are debating on selling your home now is the best times. I can't say prices will not increase but I can say that at this time you are at peak optimal to sell.