Woodstock-Ingersoll board posts highest sales for a June in eight years
This year on a much better pace when comparing back to 2014
By Mark
Schadenberg
The
dictionary definition of inertia in physics does not apply to the
local real estate market. Inertia: A property
of matter by which something that is not moving remains still and
something that is moving goes at the same speed and in the same
direction until another thing or force affects it.
You
could say that the market is currently enjoying some steady
forward motion. Momentum: the strength or force
that allows something to continue or to grow stronger or faster as
time passes.
This
rolling momentum will not last forever, but after a slow 2014, it is
great to see a better 2015.
Sales
numbers in the Woodstock – Ingersoll area (WIDREB) board have been
brisk for all of 2015, and June was certainly no different with 156
reported sales, including 143 residential transactions. For
perspective, compare that to the last four years of June numbers –
121, 121, 112 and 111. The WIDREB press release notes it was the best
June in eight years.
With
the average sale price of $243,120, it continues to also prove home
ownership is a solid investment as that number marks a 1.6 % increase
over June in 2014.
The
total number of new listings, however, declined, which often results
in a sellers' market as active motivated buyers do not have a large
inventory to consider. We are -- on occasion – also seeing multiple
offers locally. The 455 active listings at the end of June in '15 is
13.5% below last year's catalogue to peruse.
Sometimes
you can look at month's sales totals and think it's an anomaly, but
not in 2015 as the year is out-pacing 2014 by quite a margin – 715
to 584, and a 2013 result of 647.
For
more perspective, the first six months of 2005 the total was: 647.
That calendar ended up with 1473 sales, so the second half of the
year was a crazy-paced 826. I often draw back to 2005 for statistics
as it was in June of 2005 when Toyota announced Woodstock as its next
site for a major manufacturing facility.
Back
To The Present
Check
out the 400,000 – 499,000 price range to paint another picture as
2015 has seen 44 sales in that window, versus just 15 last year.
Consumer
confidence in WIDREB is great, and it should be with strong
employment prospects and low interest rates locally.
There are
several links below which further discuss a brief synopsis of area
markets.
LONDON
– ST THOMAS
The
market immediately to our west has two important milestones to
promote for June.
LSTAR
set a record for the most transactions ever in the month of June –
1,109. (Versus 981 in June of 2014). Both condo sales and residential
homes saw healthy increases – almost 20% for condominiums and 11.5%
increase for detached homes.
Also,
last month also marked 14 consecutive months in which the sales total
surpassed the number of the previous same month one year earlier (i.e
June of 2015 topped June of 2014).
The
average sale price in the London area for a detached home is now
$264,834, which is up 4.2% over June of 2014.
One
of the reasons prices are moving upward is that the number of sales
in each month is higher than the number of new listings, so inventory
is low and turning over rather quickly.
CHATHAM-KENT
A
total of 149 sales is tied for the second-best June ever.
HAMILTON
The Hamilton-Burlington
corridor reported 2,062 sales in June, which marked a 31.2% increased
compared to June of 2014. The sizzling sales totals easily topped
both May (1,810) and April (1,699) of 2015 also.
The story from
www.insidehalton.com
had a few important notations, saying:
()()()()()()()()()()
Last
month the average price of a property in the
Hamilton-Burlington-Grimsby area was $451,403, an increase of almost
nine per cent from June 2014.
The
number of properties offered for sale was 2,526, up almost 13 per
cent from the same month last year.
In
Burlington, 438 properties were sold in June this year compared to
347 in the same month of 2014, a spike of 28.8 per cent. Average
prices rose 7.2 per cent to $576,200 from $537,700.
()()()()()()()()()()
Just
in case you're thinking every house sells in less than one week with
multiple offers, that is certainly not the case as the average 'days
on market' is 29.
TORONTO
The
always-hectic Toronto market had a crazy June with 11,992 sales and
an average price of $639,184. That average price was more than 12%
ahead of June in 2014. Meanwhile, sales numbers were more than 18%
higher than June of 2014.
Where
new construction of detached homes is occurring, the average cost for
such a brand new house has rise to an average of $783,995, or 16%
higher than last year. The Toronto Star link below notes that number
is for GTA areas such as Markham, Vaughan and Richmond Hill.
“Detached
homes are still the No. 1 choice and, in a lot of cases, people seem
willing to drive further to get the backyard and the 2,500 square
feet,” says Phong Ngo, new homes manager for market research
company RealNet was quoted by the Toronto Star.
The
extension of the GO Train into new areas and the widening of the 404
has lured many home buyers to different emerging sections of the GTA
such as East Gwillimbury.
The
supply and demand theory for metro Toronto is explained well here:
“It
is encouraging to see that new listings have edged upward so far this
year, as homeowners have reacted to strong home price growth and have
looked to take advantage of increased equity in their homes. However,
the annual rate of sales growth continues to far outstrip listings
growth, which means that there remains a lot of willing buyers in the
marketplace who haven’t found a home that meets their needs. As
long as this situation persists, expect home prices to trend strongly
upward,” said Jason Mercer, TREB’s Director of Market Analysis.
LINKS:
http://www.chch.com/house-sales-set-another-record/
http://kitchener.ctvnews.ca/investigates/ctv-investigates-real-estate-reality-1.2405433
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
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