Have you ever heard the phrase ” A Free No Obligation Home Evaluation”?
I used to hear it all the time and still do and I still wonder what exactly does that mean? Does it mean a valuation of my home at that very moment in time or in comparison to other homes in the area. This is just my opinion, but I think it might be better or more insightful for home owners to understand how the market has been trending as it relates directly to them, that way they would have a better understanding of how their home compares to recent sales in the immediate area. Research and Knowledge are very powerful and can help home owners make well informed decisions.
Based on wanting to provide better information to sellers (and potential buyers) I thought it would be insightful to prepare valuations for unique neighbourhoods and for each of the streets in those neighbourhoods. I have always had this research behind me when I have been door knocking in specific neighbourhoods so I can share it with individuals I get the opportunity to talk with. Quite often Home owners are are surprised to find out how much of an increase, levelling off or on the rare occasion a decrease there has been in a short period of time. Home owners want to know how their largest investment is “performing” and most are simply curious and have no intention of selling. So today instead of talking about what is popular now or another top 10 list of things to do or not do, I thought it would be different to provide actual statistics on a niche neighbourhood in a quaint town just an hours drive to the east of Toronto, Ontario.
Welcome to “Green Acres Oasis” Neighbourhood (purely fictitious neighbourhood but very real numbers). This community is a mix of detached homes of various styles and types, some 3 bedroom Bungalows, 3 bedroom 2 storey and 4 bedroom 2 story homes. There are 5 streets making up this neighbourhood that is close to most amenities and walking distance to all school levels and various denominations. Homes were all built within the last 10 years.
Neighbourhood Average Sales Price 2012:
$422,031.00 – Based on 8 Sales in 2012
Average price for a 4 Bedroom Home during the same period in this neighbourhood is $460,450
Neighbourhood Average Sales Price 2013
$448,365.00 – Based on 16 Sales in 2013
Average price for a 4 Bedroom Home during the same period in this neighbourhood is $469,108
This is an increase of roughly 6.23% year over year for the entire neighbourhood. We can take away a lot of information from this basic information. Prices of homes are on the rise and 4 bedroom homes garner more value when reselling. Lets break it down even further.
First Street – Average Sales Price 2013 = $417,564.00
Second Street – Average Sales Price 2013 = $520,000.00
Third Street – Average Sales Price 2013 = $445,000.00 (based on only 1 sale in 2013 )
Fourth Street – Average Sales Price 2013 = $413,000.00 (based on only 1 sale in 2013)
Fifth Street – Average Sales Price 2013 = $430,086.00
I would think this is slightly better information for a Seller or a Buyer, rather than relying on an opinion or a small collection of recent sales. You can see how one of the streets above has a much larger average selling price and that is justified by the fact that those homes back onto a Ravine and have a larger floor plan than others in the neighbourhood (thus higher valuations). This might go against some conventional thinking and I would agree on some points, however, the larger the scope of information, the more informed a Seller is going to be. Subsequently large swings in market price can be validated or debunked by simply applying a bit more research to the situation. I am also trying to keep in mind the emotional and financial sides of buying a home, this was simply one approach to help sellers understand what is happening in their neighbourhood and how things are trending over a relatively short period of time.
If you feel this would be relevant and helpful information for you whether you are considering selling or looking to make a purchase in the next few months please feel free to contact me, I would be more than happy to help and answer questions you may have.
21 Drew St. Oshawa, Ont.
(905) 728-1600 Office
(905) 435-7355 direct