Taking a look at the Real Estate Market in Windsor Essex, Owner and Broker of Record Frank Binder sits down with our host, Dom Papa from WE Digital Productions, to chat about the latest trends and more for December 2022.
The discussion includes:
Number of Residential Listings: We get a chance to look at the entire 12 month period ended December 31st and we see completely distinctive halves in the year with increases until June and drops after June. If we look at December it may seem like a decided drop from the month before, but this is usual. Many Sellers retreat from the market in December and put their selling plans on “hold” until the next year which could be January or later into the Spring market. We will see as we review January listing numbers to see how many return to the market or just stay on the side-lines.
# of Active Listing End of Current Month: While we see a steady decline in housing inventory from a high of 1660 homes available in July, December usually results in a further decrease of Listings as Seller make decisions to stay or leave the market during the winter or Christmas season. Many remove their homes at this time for a variety of reasons and will consider re-entering the market in the New Year. However, many will have to consider loower home values that we’ve experienced over the past 6 months and with stress tests now around 7% we may experience weaker demand going into 2023.
Number of Residential Sales: Most Realtors consider December a “half-month” as both Buyers and Sellers move to the sidelines after December 15th to celebrate the Holiday Season. Actually, if you apply that theory and consider the 5 previous months this was much better than a “half-month”! Well, we can’t suggest this is a trend we will see that it did affect our Days On Market as we bring up the next slide.
Average Days on Market: While we have been experiencing a steady increase in our Average Days on Market with a peak in November, the strong demand and lowering inventory numbers in the last few months have actually reduced the Average Days on Market. We can really experience the supply/demand as we see the first reduction in DOM to basically a one-month period.
Monthly Residential Sales Percentage: Just when we took a deep breath with the first time drop of sales by 50% + last month we continued to see the repeat of it in December. We always need to be reminded however that comparing post-pandemic numbers to pandemic numbers is a bit of an anomaly. As we noted in our sales of residential homes the monthly sales have actually returned to a normalized rate.
Average Sales Price: The Average Annual Sales Price trend which has seen a gradual drop from a high of $700,453 in March to $616,642 in December which represents only a 12% drop in the average price. However, when compared with the Average Monthly Sales Price trend the drop is very much more dramatic from a high of $723,739 to a low of $473,642 which represents a drop of 34.5 % in that same period. If you look at the average price between on both an annual basis and monthly basis of March 2022 and March 2021, we experienced a 36.66% and 35.10 gain respectively so equity has still increased incrementally in our housing market. If we go back to pre-pandemic which was February of 2020 our Average Sales Price was $386,265 so we are still well above those numbers.
Sales/List Ratio: If you look at our Annual Sales/List Ratio in the upper graph you can see we’ve really “locked-in” to about 50% which list or now change since June. By the way if we study this nationally 70% of Canada’s local markets are at a 50% Sales/List ratio, and so we are emulating much of the country. Actually, when we move to the lower graph you can see that we actually moved to a higher monthly percentage in the month at 60% but it wasn’t enough to move the annual percentage figure.
Most Popular Style of Home: Again, we can see most popular homes are bungalow’s and ranches but it is interesting to note that raised ranches and 2 storeys, while less popular had higher average sales prices.
*Originally aired LIVE ON FACEBOOK on Jan 18th, 2022*
Royal LePage Binder is committed to providing content and data illustrating the rapid changes occuring in the #yqg market, as shown in the below downloadable PDF:
**click on top right arrow to download**
