Thursday, September 10, 2015 9:00 am ·  0 Comments
The Oakville community of Morrison is one of Oakville’s most prestigious and sought-after areas. Housing options in Morrison include distinctive lakefront properties, unique and custom upscale homes, and many other luxury home styles old and new in a prized location in southeast Oakville.
The Morrison real estate market was very much a buyer’s market through the first half of the year. Here are some key statistics for the Morrison Real Estate market for the first half of 2015.
When looking at Active Listings and Homes Sold in the chart above, there is one key statistic that REALTORS® watch 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 less intuitive than Months of Inventory.)
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.
The Value in Knowing Months of Inventory
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), home 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 six months), anyone who needs to sell a home quickly would be wise to price their property more favorably, 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 home prices typically in the multi-million dollar range, it is not unusual for Morrison to be in a Buyer’s Market position. There is a comparatively smaller pool of buyers for homes of this nature versus lower tiers of home prices in other parts of the Town of Oakville.
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 good statistic. Even though home sales in Morrison had a much higher DOM average than the Town of Oakville overall, the numbers are quite respectable given the price point of the homes in Morrison.
While some Morrison properties can take over a hundred days to sell at one end of the spectrum, there were enough properties experiencing much shorter sales time frames to pull the average number to the levels shown in the chart above for the first half of 2015.
Charts like the one above indicate the presence of a Buyer’s Market, where the average list price of homes in Morrison was consistently above 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 Morrison homes in 2015.
Month – Average List Price – Average Sale Price
The average sale price of a home in Morrison stayed consistently within a range of approximately $1.7-million to $1.9-million through the first six months of 2015.
There were a total of 85 homes sold in Morrison in the first half of 2015.
The highest sale price for a home in Morrison for the first half of 2015 was $4.7-million.