Oxford County:
To Repeat for perspective,
our year started with extremely low inventories across the county. On January
1, 2017 there were only 163 homes available across Oxford County. Opening
inventory was down 30% from the same starting month in 2016. This lower than
normal availability of homes for sale still delivered a year-to-date increase
in the number of homes sold by +18.6% to 1,347 versus 1,136 a year
earlier. During the nine-month period inventories
climbed marginally by 12.8% not keeping pace with the increase in sales. This decrease in inventory will put continued
upward pressure on prices across the county. The 6-month average price rose to $354,945 an increase in the average house price of
23.8% or $68,258. Since the peak in June
prices have moved down to an average of $330,517 for
the nine months ending September 30, 2107. This still represents a record year
over year increase of 20.3% or $55,790. Home owners are still getting an
average of 100% of asking if priced to demand.
Last year the average was 98.6% of asking price. The average days it takes to sell an average
home now sits at 30 days compared to 53 days for the nine months ending
September 30, 2016.
Woodstock:
To repeat for perspective,
the year kicked off with Woodstock’s Inventories also at extremely low levels. Basically 48.4% lower than the start of 2016
which delivered record sales. Over the
next 9 months these inventories increased by 17.4% (145 homes) but in September
dropped from 95 new listings in 2016 to 77 listed September 2017. The year to
date price of the average home in Woodstock now sits $344,696. This represents
a record 22.1% increase for this year so far. It now takes 28 days to sell a home, properly
priced to demand of the market. Last year by September 30, it took an average
of 44 days to list and sell a home. Bidding
wars, when properly priced to the market, are still happening to some homes.
Home owners now on average are getting an average of 100% of asking compared to
99.8% of asking last year. Prices should
hold and rise further if inventories continue to drop and demand remains
consistent.
Ingersoll:
We still believe
that this market really has the best opportunity for continued increased
prices. As stated previously it is
governed by the average price in Woodstock which is a much larger community
with more services. Ingersoll stared the year like Woodstock, with starting
inventory of home available for sale down 46% from what was available the year
before. Over the course of the last 9
months inventories increased by 19.3% while sales increased by 26.6%. to 235
homes sold to date compared to 197 last year. Homes listed for sale in
September dropped 12.4%. What have these
factors created for the average home price in Ingersoll? The average home price rose 18.4% by $45,166
to $290,587. The number of days that it
takes to sell the average home has dropped to 24 days compared to the 53-day average
for the first 9 months of 2016. Most home owners are getting an average of 100.4%
of their asking price compared to 98.7% a year ago.
Norwich:
Inventory is still not an
issue in Norwich. The benefit is its
location in the County, in close proximity to Woodstock and serviced by
Woodstock based Realtors. Inventories
started 2017 with 30 properties offered for sale this represents over 4 months’
supply of homes, in comparison to the other areas in Oxford County where
inventories are just over 1 to 2 months’ supply. Year-to- date there have been 66
homes sold across the township. Inventories of available properties are still
plentiful based on the average sales per month. It does take longer for a home
to sell because there are more choices. The average selling time has dropped
from 52 days average to June 30th of this this year (down from 74
days on average a year earlier) to only 43 days on average as of September 30th,
2017. Home owners are getting an average
of 99% of asking in this area. This is up from the first 9 months of 2016 when
home owners got an average of 97.8% of asking.
It is apparent that the township continues to benefit from its proximity
to Woodstock and as a result prices have risen 19.4% or $60,431 to an average in
the township of $371,437 down a bit from the June peak of $399,494.
What does all this mean?
The Bank of Canada has
recently raised interest rates a total of ½ %. We stated in June that this will
possibly bring mortgage rates up to a whopping 3.5%. Well we were wrong… They
are still lower than 3.5% for 5 years locked in term. e.g. 3.15% or 3.25%
Don’t forget CMHC mortgage
insurance qualification requirements are well above the current mortgage rate (They
require that you can qualify for a 5% mortgage term of 5 years, even though the
real rate is significantly lower). So, there is little or no impact on buyers
putting between 5% and 20% down.
Toronto resale has slowed
down. Prices off about 20% and days it
takes to sell more normal than the last few years. Trontonians will still come with Buyers pocketing
their equity and buying the home of their dreams here and putting $400,000 in
the bank instead of $600,000. They will
still not be controlled by mortgage approval and $50,000 over asking is
irrelevant if you are getting +$750,000 for your home.…But when they finally
sell they can then buy any house that meets their fancy in Woodstock and still easily
drive to Kitchener/Cambridge to catch the go train. Don’t forget we are located
at the junction of the 403 and 401 highways.
The Value difference of $330,517 across our county is still a far cry
from $750,000. We’d have to get a lot
closer in price to discourage our market. Inventories are very low. This is still very much a Seller’s Market
with inventories running well below a balanced market.
So, once again, If you are
downsizing or liquidating “DON’T SELL” now…wait until the market gets closer to
the Toronto average price (up or down) and they stop coming our way. If you want to buy your first house or move
up? DO IT NOW! The longer you wait the more you take out of your pocket. Make the market increase on the new home. Remember, First Time Buyers…When you own, the
payments go the “Interest” AND “Reduction” of the mortgage…. And Prices have
always gone up ALWAYS over any 5-year period. Rent paid is to your landlord’s/Investor's benefit.
We
are here to help with strategy to approach this market in a meaningful and
productive way.
With
Sellers, we are proud of our Listing Marketing Program and are well equipped to
maximize exposure to get the “highest” and “best” selling price possible in the
shortest time possible from this market.
Want to know what your home is worth? Call us for a market update.
Gib Heggtveit – 519-535-3975
Broker
Mary Heggtveit – 519-535-7355
Sales Representative
Email: gib@gibandmary.com
RE/MAX Centre City
