Taking a look at the Real Estate Market in Windsor Essex, Owner and Broker of Record Frank Binder sits down to discuss the latest trends and more for January 2023.
The discussion includes:
Number of Residential Listings: Residential listings for January are marginally higher than last year with an increase of 8.93%. This seems in line with our normal listing market in the winter months. The supply of homes in the winter months does affect prices so we’ll see where that is on our next slide.
# of Active Listings at the End of Current Month: The inventory of homes has dropped below a 1,000 last month and has remained almost static at 977 compared to last month’s 975. This is a dramatic change from a year ago when we had only 340 housing units in inventory to start 2022. Pricing should have very little difference with a good supply of home available for selection.
Number of Residential Sales: Sales of residential homes continue to be below last year’s numbers by about 46.72%, and that should be no surprise as 2022 began the year with a dramatic increase in homes sold as we can note from the graph. However, it is also important to note that our “half month” in January exceeded sales of last month by about 17.8% so the market is still showing signs of strength even with another slight increase in Mortgage rates.
Average Days on the Market: With higher levels of inventory, we do expect that our “Day’s on Market” will continue to hover around a month and as long as supply is static this will likely be very close or slightly higher (like it is this month) depending on availability in house type and by area. We can expect this number to continue as Buyer’s have greater choice in homes available and additional stress in mortgage will cause delay in buyer decisions to buy.
Monthly Residential Sales Percentage: While sales as a percentage compared to last year continue to be negative, we have experienced for the first time in a while a lesser drop similar to July of 2022. That is a good sign, but we will take little inference about it as it is only a month! It is expected that these numbers will continue in the short term when compared to last year especially.
Homes Sold UNDER & ABOVE $550,000 in 2022 & 2023: We continue to see the under $550,000 market dominating with 187 units sold (69%) of the market in January and only 84 units (31%) sold in the above $550,000 market. However, we do note that there were 16 more sales in the over $550,000 sold so could it mean a comeback. Usually, the upper market involves “trading” up or down and so the decision is more complex in deciding what my home will sell for and what to buy, especially in a transitioning marketplace. Until mortgage rates and prices settle expect this market to continue being weak. This same weakness can be seen in the over $1M market with just 6 homes being sold over $1M for January.
The Annual Average Sales Price: for January dropped considerably from last months $616, 642 to $516,117. As last month was an aggregate of all the months of 2022, we can see that the considerably weaker upper market, that has been with since July, has now been realized by a substantial drop in Price. As we begin a new year the Monthly Average is a mirror of the Annual Average.
Our Monthly Sales/List ratio: dropped lower in January to on 40% which is the lowest end of a balanced market. We some predicting that we will go into a Buyers’ Market we will have to keep and eye on whether this will be so. This will heavily depend on whether there is increasing supply in the Spring market or not. If not, this should normalize in the coming months.
Most Popular Style of Home for January: Always a good to review the average price by house type and this shows a wide array of values which ranches and raised ranches leading the pack.
Number of Condominium Sales: Always a good to review the average price by house type and this shows a wide array of values which ranches and raised ranches leading the pack.
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**
