Durham Region Real Estate Market Update – October 2024

As we move into the final quarter of 2024, the Durham real estate market continues to show resilience, though with signs of cooling off in some areas. Here are the latest trends and stats for the region:

1. Sales Volume Decrease

In September 2024, Durham Region experienced a 5% decline in the number of homes sold compared to August. Year-over-year, sales have dropped by 7%, indicating that buyer demand is starting to taper as the fall season progresses. The shift could be due to rising borrowing costs and buyer fatigue after a competitive summer market.

2. Price Stability

Despite the decline in sales, the average home price across Durham has remained relatively stable. The average sale price for a home in Durham Region in September 2024 was $937,500, slightly up from $925,000 in August. This stability can be attributed to low inventory levels, as sellers are holding firm on their asking prices.

• Whitby and Ajax continue to be among the more expensive areas, with average home prices hovering around $980,000 and $960,000, respectively.
• Oshawa remains more affordable, with an average sale price of $780,000.

3. Interest Rates & Buyer Sentiment

The recent Bank of Canada rate cuts have provided a slight relief for buyers, but affordability remains a challenge. Although rates have dropped, the higher cost of living and stricter mortgage lending rules are pushing some buyers out of the market or leading them to explore more affordable options, such as townhomes and condos.

4. Market Dynamics

The market is becoming more balanced, with the sales-to-new-listings ratio sitting at 55%, indicating neither a strong buyer's nor a seller's market. This gives buyers more negotiating power, and we're seeing slightly longer days on the market for properties. On average, homes in Durham are staying on the market for 22 days, compared to 18 days earlier this year.

5. Rental Market

With many potential buyers stepping back, the rental market in Durham is seeing strong demand. Average rent prices have surged by 8% over the last year, driven by low vacancy rates and increased demand for rental properties. For example, a 2-bedroom unit in Oshawa now averages $2,350 per month, compared to $2,100 in 2023.

Looking Ahead

The Durham real estate market is expected to remain steady but with cautious optimism. Inventory will play a crucial role in price stability, and as we approach the winter months, the market may see further cooling. For those looking to buy, now could be a good time to take advantage of the more balanced conditions, especially if you’re open to townhomes or condos.