Oxford County Market Update Year-to-Date April 2016
(excluding Tillsonburg
area)
Overview:
Interest Rates below 2.5% are attracting new Buyers and move up
Buyers to the market in droves. This year could be a record for Oxford County
both in movement and price gains. It is definitely
a Seller’s Market. Demand is outweighing Supply pulling us out of our near
balance market place. Here is what is
happening
We started the year with 233 homes for sale across Oxford
County, this was actually 34.5%, or 123 homes, lower than the January 1 last
year. At the same time the number of
homes that were added, and offered for sale, during the four months dropped
7.1%. This further tightened ongoing supply.
As of April 2016 sales, also increased by 11% to 395 homes for the first
4 months. We must also remember this is
the slowest time of the year. We are
approaching the busiest time as we move into Summer.
What did this do to prices?
In four months the price of an average home in Oxford County jumped
11.3% or $27,989 to $276,079. The 1The 12-month average now sits at $$265322. Home owners are getting an average of 98% of
asking price up from 97% last year at the same time. Also in 2015 a home owner had a 68% chance
of selling their home during the listing period. In 2016 this number jumped to 81%!
Woodstock:
Woodstock represents approximately 60% of the sales for the
area and circumstances are similar to the overall County performance with noticeable
differences because of its importance to the area.
January opened with only 124 homes offered for sale in
Woodstock, this was actually 26.2%, or 46 homes, lower than the January 1 last
year. However, the number of homes that
were added, and offered for sale, during the four months remained relatively
flat at 304 homes. But, as of the end of
April 2016, sales also increased a whopping 16.3% to 250 homes for the first 4
months. This put a lot of pressure on
future supply and demand. The number of
homes still on the market and offered for sale as of April 30, 2016 in
Woodstock sat at 116 homes which is just over a couple of months’ supply.
This combination had a tremendous impact on prices. In four months, the price of an average home
in Woodstock rose 16.3% or $36,058 to $282,683. The 12-month average now sits
at $269060. Home owners are getting an
average of 98% of asking price up from 97% last year at the same time. Also in 2015 a home owner had a 71% chance
of selling their home during the listing period. In 2016 this number jumped to 81% the sane as
the overall trading area! Another
interesting statistic is that it now takes 50 days to sell the average house
compared to 78 days a year ago. All of
this indicated continue pressure on inventory and prices.
Ingersoll:
The year
began with 37 homes offered for sale in Ingersoll. This represented a 19.6%
reduction of the number of active homes for sale. The number of homes added
during the four month selling period also fell by 11.4% versus a year ago
further tightening supply in this area.
Demand for homes in this area has paralleled the rest of the county and
Ingersoll finishing the four-month period with an increase of 8.7% in the
number of homes sold.
The tight
inventories in adjacent Woodstock will cause some looking afield in communities
like Ingersoll continuing pressure on inventories and prices. The resulting tight supply situation
delivered a 9.9% price increase or $21,770 for the average home offered for
sale in Ingersoll during the first 4 months. The average price of a home in
Ingersoll now sits at $241,463, nicely above the 12-month average of $228,001. The potential of selling a home listed for
sale in Ingersoll during the listing period without expiring has now reached
85%. This is the second highest demand area based on percentages sold. East Zorra has the highest list to sell
ratio.
Summary:
What does
this mean? There is absolutely no better
time to get into the market, or to move to a larger home anywhere in our
trading area. Those Clients thinking of
downsizing should put those plans on hold as this trend won’t slow for a
while. Remember we normally don’t see
increases of 10% in one year in this market.
This is not Toronto and Vancouver.
If anyone has a fear of a correction taking place it would be minor. Our
home prices have not doubled in 10 years like Toronto and Vancouver. Major
adjustments are therefore not logical.
If you or
someone you know is thinking about Buying or Selling, let us help by putting
our experience, comprehensive marketing program and our expertise to work for
them…We’ll do It right and do it now!
Gib & Mary Heggtveit
Broker & Sales Representative
RE/MAX Centre City Realty Inc.
Woodstock Direct: 519-421-2626
Gib’s Cell: 519-535-3975
Mary’s Cell: 519-535-7355
Email: gib@YourFavouriteRealtors.com
