Wednesday, 25 January 2012

Hot, Warm or Cold? Another way to measure the success of your neighbourhood

This isn't a blog about taking a bath. Don't be fooled by the pic. This is about a different kind of hot and cold that come from some thing called "days of inventory". That is, how long it would take a GTA neighbourhood to sell off all of its property if nothing new came on the market. Neighbourhoods that would sell off in fewer days would have tighter inventory issues and buyers would gobble up the listings. These are the hot hoods. The fewer days of inventory you have, the healthier your neighbourhood would be, at least from a seller's perspective. On the other side, if your neighbourhood would take months to sell off it's inventory, it's a sign that there is quite a bit of supply in your part of the GTA, and you would be in cold location.

These stats should not be mistaken with how many days it takes to sell your property. Both are similar, though, in that  fewer days means a hotter market and a much stronger chance that you can sell your property for a higher price.

So, now for the fun part. An interactive map! The link below will show you how your neighbourhood stacks up based on stats from December 2011. And remember: Don't take this report too seriously. Mimico is considered to be a "cold" area where the housing inventory would take longer to sell out. My experience, however,  has been that Mimico is one of the best emerging neighbourhoods to get in on. Of course, not of  all of Mimico is built the same. South of Lakeshore between 1st and 15th streets, properties often go way over asking very quickly.  Meanwhile, all of those massive condos along the Lakeshore took a lot longer to go.

So, with that said, the hottest Toronto neighbourhoods with the shortest time to clear inventory would be High Park/Junction and the Beach with inventory selling out in 36 days. At the other end of the spectrum, there's Jane/Finch and the Bridal Path that took 102 days to sell.

If you want to see how you're neighbourhood has done, click on this interactive question:

How does my neighbourhood stack up?

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