The title to be awarded to February 2018 sales should be, “Waiting to Exhale”. This is due impart to the declining listings to sales ratio just ahead of the traditional peak spring market.
There were 215 listings processed this February (Freeholds and Condos). Of that number, only 124 were sold. This represents just over half of the listings or more precisely, 57%.If you remember, last month’s ratio saw 2 out of 3 listings sold. Compare this February sale to that of 2017 and we are down 32.97%. The number of listings processed in February 2017 was very similar at 212 with 185 sold.
However, in a shorter time span, there were 11 more sales in February than January 2018. This is an increase of 9.7% (113 in Jan and 124 in Feb). The average price for both segments ( freehold and condo combine) has shown a moderate 1.2% upswing from one month to the next ($451,259 Jan & $456,460 Feb 18).
We have dissected the different types of homes ( freehold from condos) and found that both sales numbers declined at the almost even percentage for the month from a year ago (approximately 34%). The champion of the two segments is Condominium! The average condo value has increased by 12.4% from a year ago and 7.6% from last month. That average price is now $345,740. Freehold is down from a year ago by 1.3% to an average price of $477,752 but up 2.1% from January this year.
It is not hard to establish the reason behind the surge in condo sales. It is the most affordable segment and the average price is still 100k below the average home price (freehold & condos) in the city/region.
Pull apart the semi’s and freehold towns from the equation and you will find Single detached home value remains consistent at approximately $515,777, a meagre 0.3% down from the same month a year ago. However, that average price rose 5.8% from it’s January 2018 average of $487,274.
Although this is early in the year, this moderate 1.2% overall month increase if hold steady could result in 12.24% at year-end. A more tolerable increase from last year and an excellent indication of appreciation compared to the average yearly 4-5% we saw over the past 15 years prior to 2017.
Sheldon Barclay. President
Cambridge Association of Realtors®
Note: it is important to acknowledge that the above data analysis may differ from CREA.
(Canadian Real Estate Association) due to how they pull info from our data system known as Matrix. The above info is for February 2018 Cambridge area sales only.