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 February 2023.
NUMBER OF RESIDENTIAL LISTINGS: Listings continue at relatively the same pace as last month topping 600 homes for sale. This is still under last year, but listings are always slower in the winter months. We have noted that there is a lack of listings in some areas and that is bringing with it some multiple offers again. However, while we are getting over the list prices buyers are being prudent about just how much they will pay. We continue to see some influx of out-of-town buyers in our markets.
# OF ACTIVE LISTINGS AT THE END OF THE CURRENT MONTH: You will note a slight increase over the supply ended January but it is relatively static. If you look at numbers from last year just beside it, you can understand why the substantial price jump that occurred in the early months of 2022. With this 2-month supply of home it is likely prices will remain stable and steady as supply is adequate for the demand that is out there now.
NUMBER OF RESIDENTIAL SALES: While the number of sales rose from last month, they are static and much lower than last year (52.61% down). However, we must remind all again that when comparing to the pandemic period much has changed in our real estate world like interest rates and inflation so there is an expectation that sale will remain. What is important to note here is that they have not declined but have remained static from last month and that is a sign that we are stabilizing in our market.
AVERAGE DAYS ON THE MARKET: Our average days on market remains steady which simply means that while homes are selling they are selling at a slower pace. We need only point back to our slide on supply and the inventory of homes that we currently have of over 2 months of homes available, and we should expect that our days on market will continue to be around one month’s time. If we do see “pent up” demand which we believe is in the market, we will likely see this rate drop over the coming months.
MONTHLY RESIDENTIAL SALES PERCENTAGE: As noted on our monthly sales slide there is a drastic drop between February of last year and this year. With 8 increases in interest rates and additional inflation worries we could expect that the demand would not continue and that some buyers would just sit out of the market until these settled down. With 2 months of stable interest which we haven’t seen for some time, buyers will now be able to recalibrate and set payment levels as we as getting used to higher rates. Hopefully new levels of home prices will help in that adjustment!
HOMES SOLD UNDER $550,000: The over/under $550,000 has remain consistent with increases in each category but the under $550,000 market still dominating the market (65.6%) since June of last year. One major change can be noted here and that is 13 homes sold over $1 Million c/t only 6 last month. Can’t say from these low numbers that we are seeing a rebound of that market but it’s still an increase of sorts.
ANNUAL AVERAGE AND MONTHLY AVERAGE SALES PRICES: While the sales price did adjust at the beginning of the year, we can see a bit of a small uptick in sales price for the year of about 1.6% over last month. That is modest and is only indicative of a increased sales in February. While it is not a trend it is a sign that prices have leveled out and remain steady at the current time. Buyers should take stock of this as it is now time to consider your options as lower prices may not be in your future. We not4e that the overage monthly sales price rose by 3.2% for the month. With stable rates and stable inventory, we should not see much of a price change going forward.
YEAR TO DATE AND MONTHLY SALES/LIST RATIO: Sales/List ratios remain on lower side of 50% but with more sales in February we see a bit of an increase in both the monthly ratio and annual ratio. We expect this ratio to continue hover around the 50% mark until our Spring market is upon us and more buyers and sellers actively share the market.
MOST POPULAR STYLE HOME FOR FEBRUARY: While ranches and raised ranches certainly have the greater share of the market, 2 storey homes still command the greatest average sales price! Always good to compare style averages when buying a home.
NUMBER OF CONDO SALES: We note that condominium apartment sales continue to be strong going into 2023 and they are following the same pattern as of last year. We have noted the many condo projects dotting the landscape in many of our surrounding areas and that is a good sign as more density and more affordable housing has continued to provide opportunities for retirees and first-time buyers to afford a home to live in.
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**
