August 2022 Residential Real Estate Market Update for Windsor/Essex County
The statistics are now in from WECAR (The Windsor Essex County Association of REALTORS ®) for August 2022. Much the same as last month, BoC rate hikes continue to impact Canada’s real estate markets including our local Windsor/Essex Market. However, we have noticed an increase in activity at the tail end of August and we’re optimistic that September will offer a further increase in activity as well.
Our new average sale price is $520,634! That’s a 8.38% decrease from this time a year ago and a decrease of 6.70% from last month (July 2022 avg price was $557,989!). *(The Median sale price for August 2022 was $472,500).
There were 1,305 new listings in July 2022 compared to 1,057 new listings in August 2022. This is down 23.46% from last month and is an increase of 5.81% from the same time last year. There were 393 sales in July 2022 compared with 393 sales in August 2022 which is the same as last month and a 42.12% decrease compared to a year ago.
The most popular home styles in August 2022 were:
1st – Bungalow (111 sales) $443,585
2nd – 2 Storey (64 sales) $657,687
3rd – Ranch (54 sales) $618,990
4th – 1.5 Storey (51 sales) $364,900
5th – Raised Ranch (34 sales) $584,155
Currently we are sitting at a 3.3 months’ supply of inventory (a balanced market would be 4-6 months of inventory). Last month we were at 3.6 months of inventory. With the number of new listings down from last month’s by nearly 24%, this affects our month’s supply of inventory numbers as well.
Wondering what your price category looks like in August 2022? here’s the breakdown:
Sales by Price Category
$0 – $159,900 (2)
$160,000 – $299,999 (47)
$300,000 – $449,999 (157)
$450,000 – $599,999 (116)
$600,000 – $749,999 (59)
$750,000 – $899,999 (28)
$900,000 – $1,199,999 (16)
$1,200,000 – 1,399,999 (4)
$1,400,000 + (5)
If you’re wondering what the August 2022 listings/sales look like where you live in Essex County, here’s the breakdown:
Listings vs Sales by Area
00 – Windsor, LaSalle, Tecumseh – (List 626 – Sold 252)
10 – Amherstburg – (List 82 – Sold 22)
20 – Colchester / Harrow – (List 35 – Sold 16)
30 – Kingsville- (List 36 – Sold 21)
40 – Leamington – (List 51 – Sold 20)
50 – Wheatley – (List 11 – Sold 1)
60 – Lakeshore West – (List 66 – Sold 13)
70 – Essex – (List 48 – Sold 11)
80 – Lakeshore East – (List 38- Sold 9)
90 – Tilbury – (List 32 – Sold 17)
In case you’re wondering, here’s what the average price has looked like for the month of August since 2016:
2022 – $520,634
2021 – $568,420
2020 – $430,810
2019 – $337,054
2018 – $301,391
2017 – $257,388
2016 – $233,581
What does all this mean?
The interest rate hikes from the Bank of Canada have certainly impacted the nation’s real estate markets. With inflation climbing there were few options available to get it under control. The BoC announcement is scheduled for tomorrow (Sept 7th) and experts are anticipating another 50 to 75-basis point increase. Inflation has decreased from 8.1% in June 2022 y/y to 7.6% in July y/y, so hopefully the interest rate hikes will help get the inflation numbers lower still and we can slowly begin to enjoy a more consistent real estate market which should increase consumer confidence and increase overall real estate activity hopefully in a more healthy, balanced way.
August is seasonally a slower month each year as families enjoy summer vacations before school picks back up in September. We are optimistic that we’ll see activity in both listings and sales increase for September. Historically we have noticed that new construction activity is a good indicator as to coming resale market activity and right now, our builders are receiving quite a few more inquiries so we’re hoping to see that translate into increased resale activity in September as well.
The interest rate increases are translating into a continued decrease in buying power for Buyers as the stress test rate increases pushing down the mortgage amount that Buyers can be pre-approved for. There are two more BoC rate announcements for 2022 (October 26 and December 7th). Hopefully this Sept 7th announcement tomorrow may be the last increase for the year but only time will tell. Remember folks, the “high” interest rates we’re currently experiencing are historically normal rates. We’ve been enjoying basically free money for some time now and while it’s tough to get used to higher rates, it is a healthier environment for many reasons overall.
When it comes to listing strategies, we are definitely in that weird transition stage between markets where we are still seeing some properties being listed low to attract multiple offers hoping for over asking sale prices and others listed for apprx. market value with some negotiating room potentially built in. On average we are seeing about a 50/50 mix of either strategy reflected in local sales each day. Which strategy is best utilized varies greatly on the price point, style/condition of the home and its location, so having a REALTOR who understands the market will be able to recommend the best strategy for your particular property.
Is it still a good time to sell?
Listings are declining slightly from last month while sales are the same as last month and as inventory decreases Buyer choice is more limited. Also, with rates expected to rise again, some Buyers still have slightly lower pre-approval rates locked in for the time being, so taking advantage of that increased buying power is important while it lasts! There are other reasons for selling that may outweigh local market activity such as downsizing from a home that you can no longer maintain or weighing the benefits of moving vs. renovating as costs to renovate including materials and labour can be significant, not to mention time spent living under construction.
So, is it a good time to buy?
The expected additional increase in interest rates tomorrow will push affordability down further for Buyers, so If you are already pre-approved with a lower rate than we’ll see in the coming days, take advantage of that extra buying power while you can. Remember though that buying a home is more than just about the “investment” or what “interest rates are doing”. This is your home, and many other reasons to move may be more important to you such as job location (shorter commute), larger home for a growing family, high cost of renting etc. – speaking of high cost of renting, rental rates have been increasing significantly as well. It may just make better sense to buy, at least a starter home and building equity, rather than to keep writing those rent cheques month after month.
What about new homes?
New construction inquiries are on the rise according to our builders, especially in the last couple of weeks. In our experience this has been a good indicator that activity in general will soon be on the rise. While there are new projects in the works, not all projects are easy to find information on; some are not listed on Realtor.ca and others are still in the approval or servicing stages but coming to market soon. Choose a REALTOR who knows the new construction segment well.
Does all this information apply to everyone?
Real Estate is very difficult to generalize. While averages are great for painting a picture of the general health of the marketplace, many factors are present that determine market value including location, timing/season, pandemic status, condition of home, neighbourhood etc. I would be happy to sit down with you for a free, no obligation consultation and discuss your specific, unique situation.
Call me at 226-347-6945 or email: steve@steveblais.com
Steve Blais
Sales Representative / Team General Manager
TEAM Angie Goulet and Associates, – RE/MAX Preferred Realty Ltd. – Brokerage
Enjoy the last bit of summer weather!
*Median Sales Price is when you take all of the sale prices listed in numerical order and pick the price in the exact middle of the list, if there is an even number of sales, it is the average of the two middle prices.
