Wednesday, 6 January 2016

A 2015 recap: WIDREB sales best since 2005

Sales topped the 2014 total by 244 in the Woodstock - Ingersoll board area
A look back at London region also included below

By Mark Schadenberg
It’s been an entire decade since real estate sales have been this healthy in the Woodstock-Ingersoll (WIDREB) area.
As we wish everyone all the best for health and happiness for 2016, we must look back at the happiness that was 2015 as everyone knows that home sales sparks a healthy local economy in general with an increase in retail sales at hardware stores, furniture and appliance outlets, and most certainly local contractors as home buyers update kitchens, bathrooms, wiring and furnaces.
With no further adieu therefore, 2015 WIDREB final sales total were 1,424, which tops 2014 by quite a wide margin as 2014 had just 1,180 sales. Look at the list below and you will quickly note the only annum surpassing 2015 was 2005 and that was the year Toyota announced it was building a manufacturing facility in Woodstock.


The 11-year average is 1,242, so 2015 surpasses that number by a significant gap as well.
Why are the WIDREB sales so impressive, you ask?
The list of reasons includes:
On-going low attractive interest rates.
Affordable living compared to Kitchener-Waterloo-Cambridge.
A strong local economy.
One item not on the list, however, is a large inventory of available homes because the number of active listings is far below where it normally is.
A LOOK BACK
Year-By-Year Numbers
2015: 1424
2014: 1180                2013: 1252                2012: 1066      
2011: 1158                2010: 1216                2009: 1080
2008: 1176                2007: 1359                2006: 1278      
2005: 1473 (Correct) 
Average for past 10 years: 1242


As a full-time local Realtor, in my own opinion, I do include two precautions here.
Firstly, far too many Oxford County homes are sold by out-of-town Realtors. Keep in mind, you hire a Realtor for their knowledge, which certainly includes the immense experience in dealing with conditions in an offer and negotiating skills, but it most certainly also encompasses market knowledge. If – for example – you want to move to Oxford, have your local Realtor interview two or three Realtors and then send along a referral. You local Realtor will still get paid a referral fee and you will receive ‘priceless’ market knowledge.
Secondly, if you’re thinking of up-grading for your growing family, the average price in 2015 was $245,800 compared to $244,600 in 2014, so there was just a tiny increase in equity building. However, if you look back to 2011 the average was $218,100, so over a length of time there has been a significant increase. Home ownership is a solid investment as you gain equity by reducing your principle and by watching market value rise.
GREAT NEWS
Here is a quick mathematics equation for anyone thinking about buying a bigger home in 2016 to both take advantage of record-low interest rates and to purchase more space for your family. If you bought your current home in 2004 for $180,000 (example), that same house is now worth more than $280,000. I fully realize you have invested in up-keep and improvements from flooring to kitchens to shingles to possibly a furnace and perhaps a new composite deck to replace the wood rot of the previous deck.
Without showing you all the math, and keeping in mind you may lose five years on the amortization chart, you could now easily afford a $375,000 house without increasing your monthly payments. Later this month I will do a calculation blog to show you how.


NEXT DOOR 
LONDON – ST THOMAS
The LSTAR area easily topped 2014 totals, but also recorded the best year since 2007 in total transactions. The 2014 total was 9,366 or 9.9% higher than 2013. The best year in recent times was 2007 with 9,425 reported sales.
The 2015 number is even more impressive when you factor in 2013 had total sales below 8,000.
The London Free Press story is tagged below, but another upward movement is seen in average house prices in 2015 up to $264,435 versus 2014 at $254,141.
London is an attractive large city to call home, especially when you consider the average sale price in Metro Toronto in November was $632,685.
London is an interesting market because growth in many neighbourhoods has been exponential, especially in the northwest between Masonville Mall, Arva, Hyde Park and my cousin Nick’s farm in Denfield.
“Unemployment (numbers are) down (in London). Buyer confidence is up and London is a good place to live,” said Stacey Evoy of the London St. Thomas Association of Realtors (LSTAR) to the London Free Press.
Meanwhile, with the Ford Talbotville plant closure, you would guess that the St Thomas region is not thriving. 
After looking at these numbers, I would say the beginning of 2016 will continue a trend to a strong local real estate market.
OWEN SOUND
In the community of Owen Sound, the district's real estate board surpassed 3,000 sales for the first time ever. It would appear many markets in southern Ontario had strong results in 2015. 
Link: http://www.bayshorebroadcasting.ca/news_item.php?NewsID=80994

LINKS:


In your move to Oxford County,
your first move is to contact me.
Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty Brokerage
757 Dundas St, Woodstock
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland

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