February 2022 Residential Real Estate Market Update for Windsor/Essex County
I had to double check. Could this possibly be a misprint? Is the new average sale price for February 2022 in Windsor/Essex really $704,112? The statistics are now in from WECAR (The Windsor Essex County Association of Realtors) for February 2022 and it’s hard to believe but it’s true. Let’s get into it.
The average sale price in January 2022 was $636,422 but in February 2022 the average sale price increased to an unbelievable $704,112! Which is a 44.74% increase from a year ago in February 2021. *(The Median sale price for February 2022 was $656,000).
There were 546 new listings in January 2022 compared to 680 new listings in February 2022. This is up from last month and is an increase of 17.04% from the same time last year. There were 459 sales in January 2022 compared with 549 sales in February 2022 which is up from last month and up 8.93% from this time last year.
The most popular home styles in February 2022 were:
1st – 2 Storey (119 sales) $868,803
2nd – Bungalow (115 sales) $579,965
3rd – Ranch (68 sales) $734,267
4th – 1.5 Storey (63 sales) $584,177
5th – Raised Ranch (46 sales) $819,101
Months of Inventory
Currently we are sitting at a 0.5 months supply of inventory (so that means we currently have two weeks worth of homes left to sell if we stopped getting new listings today – a balanced market would be 4-6 months of inventory).
Wondering what your price category looks like in February 2022? here’s the breakdown:
Sales by Price Category
$0 – $159,900 (1)
$160,000 – $299,999 (23)
$300,000 – $449,999 (91)
$450,000 – $599,999 (151)
$600,000 – $749,999 (155)
$750,000 – $899,999 (80)
$900,000 – $1,199,999 (54)
$1,200,000 – 1,399,999 (26)
$1,400,000 + (18)
If you’re wondering what the February 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 439 – Sold 356)
10 – Amherstburg – (List 78 – Sold 65)
20 – Colchester / Harrow – (List 8 – Sold 10)
30 – Kingsville- (List 29 – Sold 16)
40 – Leamington – (List 24 – Sold 19)
50 – Wheatley – (List 3 – Sold 2)
60 – Lakeshore West – (List 33 – Sold 25)
70 – Essex – (List 20 – Sold 12)
80 – Lakeshore East – (List 14- Sold 13)
90 – Tilbury – (List 22 – Sold 18)
What does all this mean?
Just how high can prices go in such a short period of time? Will we soon be looking at Million Dollar 2-bedroom war-time homes? It’s clear that this is an inventory supply issue – we simply need more housing … affordable housing. It’s time for our Federal and Provincial Governments to come up with a real plan for more affordable housing.
11% (65) homes in February 2022 sold for over $1 Million! That’s the equivalent of 2 homes per day selling for over a million dollars!! Last month my opinion was that once our most recent covid restrictions were eased and kids were no longer schooling at the kitchen table (and we were back out in restaurants and gyms again), Sellers would again put their homes on the market, and we would have at least a bit more inventory to calm things down a bit. Well, that didn’t happen at all – demand is still far outpacing the units we can bring to market.
Many economists predict the Bank of Canada will begin hiking its benchmark interest rate — starting with a hike of 0.25 percentage points on Wednesday. An increase in interest rates will further diminish buying power simply resulting in less home for your hard-earned dollar although it will take a significant rate hike to make any dent in the current market. Consecutive rate hikes in the remainder of 2022 may have some affect but based on current demand, that remains to be seen. We simply need more affordable housing. At this point we can expect a strong Seller’s market for the foreseeable future. Inflation is certainly taking its toll on Canadians including all of us in Windsor/Essex.
Is it still a good time to sell?
With the average sale price now breaking the $700k mark, now is an incredibly good time to list your home. There are some fierce bidding wars happening out there. Now is this kind of price the norm for every home? Of course not, however we’ve been watching prices and the number of offers in general and it’s going nowhere but up at this point and is widespread across the county (and most Canada!). Contact us to find out what this means for your location/home.
So, is it a good time to buy?
Although it doesn’t seem like it based on the numbers we’ve just reviewed – like pretty much every month now the longer you wait the more it will cost you. Unfortunately, while we wait, the average price continues to rise steadily upwards making your home purchase more expensive or you having to downgrade your expectations. There is no question that Buyers are tired. The multiple offers and slim pickings are no doubt difficult and stressful. That’s why it’s so important to choose a REALTOR who has the experience necessary to navigate this challenging market and help you secure your dream home before prices climb further. Interest rates are still low but won’t stay that way forever.
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 that were planned for years down the road are not yet ready – government approvals and red tape to bring serviced building lots to market is a slow process. There are some new developments coming online now across the County. Contact us for more information on new builds. New home prices will continue to rise which should bring even more interest and higher prices to the higher-end resale segment.
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 direct at 226-347-6945 or email me at steve@steveblais.com
Steve Blais, Sales Representative
Team Angie Goulet and Associates,
RE/MAX Preferred Realty Ltd. – Brokerage
Spring is around the corner! Get out and enjoy!
*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.
