Friday, 7 October 2016

First 9 months of 2016 surpasses entire WIDREB total of 2014

Will 2016 catch up to amazing 2005 total transactions of 1,473?

Average price of a home in our area is $282,064

By Mark Schadenberg
Here's my end of September sales report:
Total sales for an entire calendar year – dating back to 2005 – are noted here:
Year-By-Year Numbers (Totals in WIDREB)
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


Question.
What do you think the total Woodstock-Ingersoll district real estate board sales are for the first 9 months of 2016?
How about 1,050?
No
Perhaps 1,125?
No
Could it be as high as 1,175?
No.
The first 9 months of 2016 has surpassed the full 12 months of 2008, 2009, 2011, 2012 and 2014.
Total reported MLS sales in WIDREB at the end of September is: 1,205.
The actual month of September included a respectable 118 sales as compared to 114 last year, 123 in 2014, 127 in 2013 and just 99 in 2012.
As I have noted in most reports, the transactions totals would be higher if the inventory (number of listings) was higher. Currently, in Woodstock in the active price bracket of $240,000 - $280,000 there are 14 listings, but 6 don't really exist as they are townhomes under construction by either Claysam or Breymark. 


Since I have reported previously that the average price of a residential home in Woodstock and Ingersoll area has moved upward by about 15% in the past 12 months, a mathematician would tell you that sustaining that rate month after month is not an easy task as it represents about 1.1% increase compounded month over month. The average price at the end of September was $282,064 as opposed to $270,109 at end of September 2015, and 246,445 at the conclusion of September 2014.
Here's the point about averages. If a baseball pitcher had 9 good outings in a row and then in a 10th appearance allowed 6 runs in 3 innings, the ERA would move up substantially. My abacus would show a 4.3% increase over the last 12 months (282 versus 270), but at the same time the average actually declined from $308,121 reported by the board in August of 2016.
The WIDREB press release at the end of August said this:

The average price of homes sold in August 2016 was a record $308,121, rising 20.7 per cent from August 2015. The year-to-date average price was $282,635, up 15.1 per cent on a year-over-year basis.

No matter which way you slice the pie, the average of $282,064 still represents an increase and if you factor in high-end sales versus a few lower priced properties sold, an average can quite easily dip up and down from one month to the next.
In actual fact, the year-to-date average price is very close to $282,000 so August was a statistical bubble.
Numbers for the Brantford-area board are also noted below and they too have a noted lack of listings. If the cupboards are only half full, the inventory is low.
I have included a link below to my September blog on the huge number of residential projects in Woodstock, which also indicates that 2017 should be a brisk year in real estate as many home owners either down size to an apartment or possibly buy a larger home.


LINKS:
http://markroyallepage.blogspot.ca/2016/07/woodstock-is-growing-with-many.html

http://www.torontosun.com/2016/09/15/household-debt-climbs-to-record-levels-driven-partly-by-hot-real-estate-markets
http://www.brantfordexpositor.ca/2016/10/16/lack-of-local-homes-on-the-marklet




No comments:

Post a Comment