Wednesday, September 9, 2015 9:00 am ·  0 Comments
The Oakville community of Joshua Creek is an family-oriented community located in the northeast section of Oakville. Housing options in Joshua Creek include primarily upscale detached homes and townhomes.
The Joshua Creek real estate market was very much a Seller’s Market through the first half of 2015. Here are some key statistics for the Joshua Creek Real Estate market for the first six months of 2015.
When looking at Active Listings and Homes Sold in the chart above, there is one key statistic that REALTORS® use as an indicator for what is happening within the real estate market. This is known as “Absorption Rate” or “Months of Inventory.” (Some people show Absorption Rate as a percentage, but I find that to be more confusing than Months of Inventory.)
Months of Inventory Defined
In simple terms, Months of Inventory (number of active listings divided by number of homes sold) tells us how quickly the overall inventory of homes is selling. The lower the number of months, the faster that homes would “sell out” if no new homes came on the market.
Months of Inventory (MOI) is an important real estate formula because it can help us to understand the market and how to position a home for sale within that marketplace. For example, we know that in an environment of low MOI (anything below four months), sales are moving quickly so it may be an opportunity to price your home more aggressively (but not at an unreasonable level–we still want it to sell). On the other hand, when MOI numbers are higher (above 6 months), anyone who needs to sell a home quickly would be wise to price their property more favorable, in line with the lower end of recent home sale prices in order to increase the likelihood of a faster sale in a Buyer’s Market.
Anything under 4 Months = Seller’s Market
From 4 – 6 Months = Balanced Market
Anything over 6 Months = Buyer’s Market
With MOI numbers in the ones and twos for the first six months of 2015, Joshua Creek was squarely within a strong Seller’s Market for the first half of the year.
Days on Market (DOM) is a measure of how long it took, on average, for a home to sell. Generally speaking, if a home sells in less than 30 days, that is a respectable result.
With the exception of one blip in the month of May, homes in Joshua Creek were selling at a pace very much in line with the overall average for the Town of Oakville (see above).
Charts like the one above indicate the presence of a Seller’s Market, where the average list price of homes in Joshua Creek was very close to the average sale price of homes throughout the first six months of the year.
Here are the raw figures for average list price and average sale price for Joshua Creek homes in 2015.
Month – Average List Price – Average Sale Price
The average sale price of a home in Joshua Creek stayed consistently above $1-million, falling below that mark for only one of the first six months of 2015.
There were a total of 123 homes sold in Joshua Creek in the first half of 2015.
The highest sale price for a home in Joshua Creek for the first half of 2015 was $1.81-million.