CORONA JUNE, JULY & AUGUST UPDATE FOR OXFORD COUNTY

 

Sales are almost back to normal across the County.  Controlled Open Houses are now back, with only 1 couple at a time (in a touch free environment).

The market is also rebounding.   In June we hit 96.4% of the record sales in June 2019.  (216 sales versus 224 a year ago across the county).  In July, sales set a record by matching the 216  homes sold in June 2020.  This represents an increase of 29% over July 2019. In August, the number of homes sold returned to normal levels, selling 108 homes across the County compared to 107 in 2019. Leading up to these June and July homes sold across the County, sales were at normal sales levels until “mid” March:

January:        140

February:      141

March:          162     +14.9%

 

As per our last report April and May home sales were terribly slow:

April:           102

May:            125

 

And now June, July& August:

June            184

July             209     +29%

August        108

 

 

Let us Look at Prices:

Prices peaked across the County in March at $481,301 and then dropped to $416,919 in April, rebounded in May to $486,613 and leveled out in June at $480,054 and rose back to $486,326 and breaking the $500,000 barrier in August to $505,839.

What does the future look like… Inventory of home available across the County will tell the full story!  Prices will recover quickly and rise above the $505,839 peak experienced in August 2020.

The number of homes available for sale this time of year are well below 2019. This puts significant upward pressure on prices.  May's number of homes for sale translated in to 4 months' supply. June dropped to 3 months' supply and July & August dropped further to only 2 months' supply of homes for sale. Technically we are back into a Very Hot SELLER'S Market with bidding wars in virtually all pricing Categories. The most aggressive over bidding isn the $250,000 to $500,000 price categories averaging out above 6% over asking. What that means is you may see bids between 15% and 29% over the list price.

The number of homes available for sale is driving this pricing.  Available homes for sale sit well below last year's crazy market. May's number of homes offered for sale translated into only 4 months of supply (a balanced market is 6 months of supply). Then June's supply dropped to 3 months and now July and August dropped further to only 2 months of inventory based on current demand by Buyers. the most aggressive price categories are between $250,000 and below $550,000 averaging above +6% above asking prices. This means you must come up with the cash for any bid above a home priced to current market.  Banks  used Current Market Valuations for loans.  This could mean that a family with 25% down, could be forced into Canada Mortgage  & Housing Corporation Insurance program because they chose to overbid by 15% to 20%

Remember, Buyers overbid because they believe that prices are going to continue to rise and the price that they are forced to pay now will be offset with a year to two at the latest.

If you know someone:

Who “needs to sell” due to their financial situation?

Who “needs a larger home” for their growing family?

Is a first-time buyer who is “ready to buy their first home”?

Call us with their name and contact information today. 

Do not wait! They will be paying a lot more if they do!

Put our 18 years of Award Winning Real Estate Service to work!

You'll be glad you did!

Gib & Mary Heggtveit

Broker & Sales Representative

RE/MAX Centre City Realty Inc.

 

Gib Cell:        519-535-3975

Mary Cell:     519-535-7355

 

Email:            gib@yourfavouriterealtors.com