Statistical look at WIDREB in January of 2016
Lack of supply has increased average sale price to over $255,000 in our region
By
Mark Schadenberg
I
love chocolate chip cookies, including the no-name Decadent President’s Choice brand
which sometimes can be for sale at a giveaway or loss-leader price at your
favourite supermarket.
It’s
super when they’re on sale – you could almost consider eating them for supper
with a glass of chocolate milk.
If
you stock up on cookies for your pantry shelves, you won’t need to buy any the
next week, and the no-name folks (I’m not really sure who they are), will have
a lot more space in their warehouse because they sold crates upon crates of
cookies last week. You could say that’s the way the cookie crumbles.
BUSY
LOCAL REAL ESTATE MARKET
Real
estate in Oxford County has now been through a stretch of several months of a
very low number of listings in the attractive affordable lower price ranges
(Below the average sale price, which has now grown to over $260,000).
The
cupboards are bare, inventory is low and there are no loss leaders to consider
for your shopping cart. The ingredients for a busy real estate market are two-fold
– lots of buyers, but you also require product to sell – houses.
January
of 2016 in the Woodstock-Ingersoll board area (WIDREB) included 78 sales versus
81 in January of 2015. Keep in mind, the first month of 2014 featured only 44 sales,
so the cup is actually about 96.296296% full as we (me actually) certainly
believe 81 sales in 2015 is an excellent benchmark. As mentioned above, if the
market had even a reasonable number of listings, sales would be much higher. I
would believe every Realtor has at least one motivated qualified purchaser
waiting to buy currently.
In Woodstock in the very popular 219,000 - $260,000 price bracket, there are just 14 current listings.
In Woodstock in the very popular 219,000 - $260,000 price bracket, there are just 14 current listings.
It’s
this lack of supply in the famed supply-demand pendulum, which is a key factor
in the average sale price leaping from to $233,737 up to $257,866 in just 12
months. I’m not convinced a statistical sample of just 78 sales is enough to
etch-in-stone that average number, but a trend is easily depicted.
Watch
www.markroyallepage.blogspot.com every month for up-to-date
sales numbers. I mention this because I want to be your source for accurate and
current information. I would suggest you could test any Realtor knocking on
your door to know the facts and figures about our current market. My blog
entries go further by posting some links to stats in neighbouring markets such
as London – St Thomas (LSTAR).
I believe all economists stress the importance of a healthy real estate market in new and re-sale residential properties as traffic increases to carpet and paint stores, furniture outlets, and renovating companies for projects such as windows, kitchens, bathrooms and furnaces.
When
you’re ready and wanting to talk real estate, call Mark Schadenberg at (519)
537-1553.
Brantford
Regional Real Estate Association
2015
– Year In Review.
Source:
Canadian Real Estate Association
The
number of homes sold through the MLS® System of the Brantford Regional Real
Estate Association came in well above year-ago levels in December 2015.
According
to statistics reported by the Association, residential property sales numbered
125 units in December. This was an increase of 16.8 per cent from December
2014, and marked the second best month of December on record after 1996.
On an
annual, sales activity totalled a record 2,384 units in 2015. This was 14.9 per
cent ahead of 2014, and stood 3.4 per cent above the previous record from 2007.
“Housing
demand in the region remains historically very strong, and the result continues
to be rising prices and falling supply as new listings are not keeping up,”
said John Oddi, President of the Brantford Regional Real Estate Association.
“Where it could get interesting in 2016 is if that trend of declining
inventories keeps up. We saw almost 2,400 homes change hands in 2015, but we
started 2016 with a record low 322 properties listed for sale, so we may end up
seeing fewer sales than we otherwise would but larger price gains as buyers
compete for those listings.”
The
average price of homes sold in December 2015 was $276,982. This was up 4.3 per
cent on a year-over-year basis. The average price in all of 2015 was $293,059,
an increase of 8.2 per cent from 2014.
New
residential listings numbered 101 units in December, an increase of 12.2 per
cent from December 2014. There were 3,023 new listings in all of 2015 an
increase of 5.6 per cent from 2014.
Overall
supply is currently running at record lows. There were 322 active residential
listings on the Association’s MLS® System at the end of December 2015, down 15
per cent on a year-over-year basis.
There
were 2.6 months of inventory at the end of December 2015, down from 3.5 months
at the end of December 2014 and below the long-run average for this time of
year. The number of months of inventory is the number of months it would take
to sell current inventories at the current rate of sales activity.
LINKS:
Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty Brokerage
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