December 2021 Residential Real Estate Market Update for Windsor/Essex County
Happy New Year everyone! The residential real estate statistics have just arrived from WECAR (The Windsor Essex County Association of Realtors) for the month of December 2021. Let’s take a look!
The average sale price in November 2021 was $570,879 but in December 2021 the average sale price increased slightly to $575,069! Which is a 25.73% increase from a year ago in December 2020. *(The Median sale price for December 2021 was $530,000).
There were 867 new listings in November 2021 compared to 405 new listings in December 2021. This is down from last month but is an increase of 10.60% from the same time last year. There were 626 sales in October 2021 compared with 459 sales in December 2021 which is also down from last month but up 12.59% from this time last year. This is typical as December is generally a slower time of year for both listings and sales historically.
The most popular home styles in December 2021 were:
1st – 2 Storey (93 sales) $662,454
2nd – Bungalow (92 sales) $462,601
3rd – Ranch (57 sales) $686,365
4th – 1.5 Storey (53 sales) $441,724
5th – Raised Ranch (53 sales) $666,980
Wondering what your price category looks like in December 2021? here’s the breakdown:
Sales by Price Category
$0 – $159,900 (3)
$160,000 – $299,999 (32)
$300,000 – $449,999 (151)
$450,000 – $599,999 (123)
$600,000 – $749,999 (102)
$750,000 – $899,999 (50)
$900,000 – $1,199,999 (23)
$1,200,000 – 1,399,999 (5)
$1,400,000 + (6)
If you’re wondering what the December 2021 listings/sales look like where you live in Essex County, here’s the breakdown:
Listings vs Sales by Area
00 – Windsor, LaSalle, Tecumseh – (List 243 – Sold 286)
10 – Amherstburg – (List 39 – Sold 26)
20 – Colchester / Harrow – (List 9 – Sold 15)
30 – Kingsville- (List 18 – Sold 19)
40 – Leamington – (List 21 – Sold 23)
50 – Wheatley – (List 1 – Sold 3)
60 – Lakeshore West – (List 21 – Sold 23)
70 – Essex – (List 17 – Sold 15)
80 – Lakeshore East – (List 12- Sold 12)
90 – Tilbury – (List 8 – Sold 11)
What does all this mean?
As is typical for the month of December each year, listings and sales for December 2021 were lower than November 2021 however they were up 10.6% and 12.59% respectively from last year in December 2020. Continued low levels of supply along with still low (for now) interest rates continue to fuel this Seller’s market. Once again, this winter we are faced with new COVID19 restrictions from the Province of Ontario, but this time feels a bit different. While we’ve all grown somewhat accustomed to the roller coaster ride this pandemic has thrown at us, in my opinion this time many of the people infected with the virus seem closer to home and in greater numbers than previously experienced which may lead to more cautious Buyers and Sellers but I expect mostly Sellers. How will this impact January and beyond? this remains to be seen, however for the most part this Seller’s market has been fueled by low inventory and if this new variant continues to force restrictions, school closures etc., low inventory will likely continue to be the norm. And until that is improved, a continued Seller’s market should be expected. It’s more important than ever to choose a full time REALTOR ® who is emersed in current market conditions daily and can spot trends and changes in the marketplace in real time.
Is it still a good time to sell?
Absolutely! The lack of current inventory means it’s a great time for you to get your home on the market. There are still plenty of Buyers out there looking, however now more than ever a proper pricing strategy is extremely important. Showcasing your home professionally and utilizing the right pricing strategy could mean the difference between a quick sale and your home sitting on the market.
So, is it a good time to buy?
Yes, mortgage interest rates are still low but expected to rise as early as the second quarter of 2022 (some banks/lenders have already raised some interest rates) although there is debate as to whether this new variant wave may affect an increase in rates. Buying power will be reduced as rates increase. Waiting for the spring market? Current projections for this region forecast an increase in average home prices by approx. 10% in 2022. Thinking of waiting for more inventory? If rates go up, you may find that the money you thought you would save is lost to the lender as well as higher average sale prices as the year progresses. If you can find a home that you love and can afford … buying now may be the smart choice.
What about new homes?
New construction availability continues to shrink while demand and prices continue to climb. Sewage capacity limitations continue to plague many municipalities as existing developments sold out quicker than expected and developments in the works were planned for years down the road and not yet ready. New home prices will continue to rise which should bring even more interest in the higher end resale segment. Builders are searching for ready to go buildable lots to keep their crews busy!
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.
Happy New Year everyone!
*Median Sales Price is when you take all of the sales 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.
