January Newsletter Part One

Since 2011 is in the books, lets look back at the sales stats.
Keep in mind, these are MLS sales numbers as reported by the members of each board, so sometimes a sale occurs with Realtors that is not reported, and not all new construction contracts get posted at our local board office. Obviously, a private sale is also not part of the calculations.
However, this same 'correction' in the numbers could be mentioned every year.

Fewer Than 60 Sales Locally In Sept
Sales numbers for December of 2011 show a decrease over the past 3 years: just 53 in 2011, 62 in 2010, 70 in 2009, 58 in 2008, and only 44 in 2007 in the Woodstock-Ingersoll District real estate board area (WIDREB includes Norwich, Innerkip, Sweaburg, Beachville, Embro, Mt Elgin, and points in-between).
Numbers for the entire 2011 are 1159 sales, versus 1216 in 2010 and only 1080 in 2009. Needless to say, a graph of these stats would show that the first half of 2010 was terrific, but numbers are somewhat lagging since. It is commonly blamed on the introduction of the HST into real estate fees (lawyers fees, inspections, etc) that drove the market activity up in early 2010 as consumers wanted to buy before this implementation.
Weather is certainly a factor, as December sales over the past 9 years don't appear to follow the trend for that year in total -- it's been a show of inconsistency: (continued from above) 60 in '06, only 47 in '05, 78 in '04, and 66 in '03. With Christmas and arrival of winter dominating the mindset it's easy to see why numbers are lower than other months.
　
If you're curious why the 2005 total of 47 seems modest as it was the year the Toyota plant was announced, it can be noted that sales in April of 2005 were 175, then way up to 195 in May, and 182 in June of that year.
To summarize, year-end sales totals for the past 9 years are as follows:
2011: 1159
2010: 1216    2009: 1080
2008: 1176    2007: 1359
2006: 1278    2005: 1473 (correct)
2004: 1366    2003: 1153
dispell rumours that Woodstock and Oxford in general has been thriving since the Toyota announcement to build here in May of 2005. On the flip side, attractive interest rates will keep consumers moving up in the residential world even though the federal government did tighten up rules for mortgages -- including amortization periods and the necessity for a down payment.
As for neighbouring markets, here's a story from the London Free Press this week, which indicates the market trends to our immediate west.
Real Estate Sales Stats From London Area
Area home sales market enjoys reboundREAL ESTATE: Despite a slow start in the spring, sales for 2011 nearly matched the previous year
By HANK DANISZEWSKI, The London Free Press
Last Updated: January 3, 2012
LONDON -- After a slow start in the spring, home sales in the London-St. Thomas market rebounded in 2011 and nearly matched the previous year.
The London-St. Thomas Association of Realtors (LSTAR) reported Tuesday that 8,048 homes were sold in 2011, about 1% fewer than 2010.
The year got off to a slow start when sales in the spring were lagging 15 to 20% behind 2010.
But association president Jack Lane said he was confident the market would pick up in the summer and fall.
"It was a little slow coming out of the gate, but in the end we finished strong, despite concern over the extent to which global economic worries would impact us locally."
The results for St. Thomas were especially impressive, given the layoffs that have hit the city, Lane said. The number of homes sold in St. Thomas was up 3% for the year and the average sale price rose 3.7% to $189,313.
LSTAR said 384 homes sold in December, just below the total for the same month in 2010.
The average price for a detached home across LSTAR's jurisdiction stands at $244,430, up 5.3% from January 2011.
The average price for a condo stands at $179,560 year end, down 3.4% from January 2011.
Lane predicted that 2012 will see a modest increase in sales over 2011.
London-St. Thomas should benefit from slow improvement in the U.S. economy, boosting the confidence of home buyers, he said.
Barb Whitney, a Century 21 agent, takes over as association president for 2012.
　
　Tri-Cities Sales Tally For 2011
Real estate holds its own in K-W region By Rose Simone, Record staff -- Jan 5 storyWATERLOO REGION — Despite the economic turmoil in much of the world, the housing market in Waterloo Region stayed solid in 2011, according to statistics from the region’s two real estate associations.
Although the number of sales in the Kitchener and Waterloo area was down 2.1 per cent, with 6,252 houses sold in 2011 compared to 6,389 in 2010, a more active market in Cambridge made up for the loss. In Cambridge, 2,890 houses changed hands in 2011, up from 2,683 the year before.
Meanwhile, house prices went up across the region. The average price for all the homes that sold in Kitchener, Waterloo and the surrounding townships increased about four per cent last year to $300,949; in Cambridge, the average price rose 2.2 per cent to $285,418.
On the whole, 2011 was a good year for people buying and selling homes in Waterloo Region, said Sara Hill, president of the Kitchener-Waterloo Association of Realtors.
"Some numbers were down, but when you look at the bigger picture, it still says that things are going extremely well and this is a solid market," she said.
Sales in December also were strong, with 329 sales in the Kitchener and Waterloo area, about the same as a year earlier. In Cambridge, 159 houses were sold last month, up 2.1 per cent from December 2010.
Hill said low interest rates made moving attractive for first-time buyers as well as for people who were moving up from mid-sized homes into bigger homes. "People who are moving up will refinance and blend mortgage rates when the interest rates are low like this. They can do that when rates are so attractive."
Hill said many of the technology companies in Waterloo Region are still hiring, and that generates confidence in the economy.
"This is an attractive hub for technology. People are still coming in and as long as we have population coming in, we know the housing market will be solid," she said. "Those people might rent for six months, but then they buy, so they are feeling very good about the security of these jobs."
The Cambridge Association of Realtors said 2011 was the third best year on record for sales. The all-high was 2005 when 3,023 homes were sold.
The average price in Waterloo Region got a boost from sales of newer, higher-priced houses. In Cambridge, for example, 21 properties sold in the $350,000 to $500,000 range in December; six sold for more than $500,000.
Hill said she is optimistic about 2012 and foresees a strong spring market. "Last year, we didn’t have that wonderful spring market and it seemed to take longer, but I think we will see a really good spring market come back," she said.