Pace of real estate sales in our region surpassing just about every previous year
By
Mark Schadenberg
Using
the assumption that not all listings sell, I think it’s safe to decipher the
April statistics in WIDREB by say that the new of new listings (186) was about
equal to the number of sales (155).
It’s
a relief to see the number of listings actually growing as our market, which I
have written about in many recent posts about sales totals, has been very low
on active inventory.
If
a hardware store has only 5 wrenches on its shelf, but the stock room manger
knows he sells at least 8 wrenches every month, then the price will go up based
on principles of ‘supply and demand’.
Graph from: www.cometothecrossroads.com
Sales
numbers in the Woodstock-Ingersoll District real estate board (WIDREB also
includes Norwich, Innerkip, Sweaburg, Beachville, Embro, Mt Elgin, Hickson,
Drumbo and points in-between), depict that 2015 was a very strong year in
sales.
THE
NUMBERS
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
Keep in mind, these stats are solely for reported MLS activity,
and do not include private sales or custom-built contracts not ever advertised
(listed) MLS.
APRIL
2016
Remembering
that listings numbers are low, the 2016 calendar is off to a quick start
through 4 months –
topping every year over the past 10 years with 154 sales and 477 total over the
first 1/3 of the year.
Here
are the numbers with aPRIL sales
totals noted first and then the 4-month total. It’s easy to
see which years had astounding numbers – 2016,
2015, and 2010, and that 2012 was not a great winter / spring to be a Realtor.
2016 154 477 2015 142 428
2014 121 325 2013 127 399
2012 93 346 2011 103 391
2010 162 447 2009 101 265
2008 130 394 2007 107 420
In
the WIDREB area, the average price of a home has leaped to $271,543 from
236,774 just 12 months earlier for an increase of 14.7%. The last time I witnessed
a 12-month surge like this was in 2005 when Toyota announced it would be
building an assembly facility in Woodstock.
In
recent years, the increase in home values was quite stagnant:
2016:
271,543
2015:
236,774
2014:
237,713
2013:
238,186
2012:
227,790
2011:
209,589
2010:
221,653
There
are many other factors in play, such as the average cost of some of the larger
new 2-storey homes is above $400,000, plus the cost of a building lot has moved
upwards too.
As
comparison, the average sale price in Kitchener-Waterloo in April was higher
the $365,000, and in Guelph was 399,600, and in Mississauga was 654,000.
COST
OF BUILDING NEW SCHOOLS
Property
taxes on new construction in the Kitchener area are going up to assist in the
cost of building new schools in newer subdivisions. It truly is the cost of
growth.
The
story in the Waterloo Region Record (http://www.therecord.com/news-story/6559295-school-taxes-soar-on-new-homes-businesses/
) indicates this one-time cost will be applied to the builders in that region
in the form of development charges, but after June 1 of this year the builder
will then add it to the price of the completed home.
Tax
paying families with (or without) school-aged children must keep in mind that
it is not only the cost of the new building of
a school which is a factor, but certainly also the cost of the land
itself. Read the newspaper story attached, but it can be noted the total tax on
a new home in the Kitchener area is over $30,000.
It
seems the numbers are the story here as the Waterloo Region currently has
83,700 students, but are projecting as many as 111,000 by 2031.
From: Waterloo Region Record newspaper
LINKS:
KITCHENER-AREA LINKS:
http://www.therecord.com/news-story/6524990-trustees-seek-212m-to-help-build-schools-in-waterloo-region/
http://www.therecord.com/news-story/6524990-trustees-seek-212m-to-help-build-schools-in-waterloo-region/
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
Discussion . . . Direction . . . Determination . . .
Destination
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