I get this question from owners whose homes did not sell.
I generally report on market stats for Mississauga, Oakville, and Toronto but on their own the numbers are really pointless. Although it is important to know how many homes sell, it is more important to know the “absorption rate” and how to make your listing part of the “absorbed”. The absorption rate is simply the number of active listings divided by homes sold per month. This gives a number that can also be defined as the standing inventory in months. For example, if 400 homes are on the market and 100 homes actually sold, the absorption rate or standing inventory is 400/100 = 4 months. This means that if no other homes come on the market it will take 4 months for the standing inventory to be sold off.
Every type of home and neighbourhood has its own unique absorption rate and it is very important to know this number for your home. Once you know this, you apply the recipe of price, condition, and marketing to get it sold.
At mid June 2014 the absorption rate for Mississauga, Oakville, and Toronto is hovering around 2.5 months. Now you see with such inventory levels why prices are rising. But, only 40% of the actives will sell and 60% will remain unsold. Hmmm !
The Government in Ontario did not change, but maybe a small “change” could get your home SOLD.