The statistics are in from WECAR (The Windsor Essex County Association of Realtors) for January 2024.. Let’s see how 2024 is starting off!
- The average sale price for January 2024 was $534,655 which is up 3.38% from last year but also up 3.92% from last month.
- At 633 – new listings increased by 4.11% compared to last year however compared to last month increased by a whopping 110.30%!!
- With 276 sales, this reflected an increase of 5.34% compared to last year and also a significant increase compared to last month at 22.12%.
- The Median Days on Market was 21 days
- Months of Inventory at 3.0 months (0-4 months is a Seller’s market).
- The Sales to New Listings Ratio was at 46.5 (40-60 is a balanced market).
So once again we find ourselves in a Sellers AND balanced market depending on the metrics analyzed. Due to seasonality, we would give more weight to SNLR and its balanced market.
In December of 2023 the story was low inventory, which has improved. Sales however are still low yet slightly higher than last year at this time. Even though December inflation increased from 3.1% to 3.4% (if you’re keeping score that’s the wrong direction to reach the BoC’s target of 2%), the Bank of Canada is “confident enough” that inflation is on the right track to not dwell on a rate hike risk any longer. The BoC is now shifting focus to how long the overnight rate needs to be at its current level according to Senior Deputy Governor Carolyn Rogers. Finally, some optimism!
Many Buyers continue to sit on the sidelines waiting for “rates” to come down however the BoC overnight rate affects variable-rate mortgages … meanwhile fixed-rate mortgages have been on a downward trend with some lenders offering insured 5-year fixed rates currently available south of 5%. With all of that said, the average sale price managed to increase year after year and also compared to last month. On the ground, especially in the last week of January, activity has notably increased with many more homes selling above asking (list low – sell high strategy) compared to the previous several months’ trend of traditional sales increasing (sold at or below asking). Multiple offers are definitely still a thing.
When will Buyers come back to the table? If they are waiting on the BoC to begin cutting rates, this could still be awhile according to economists however when they finally do make some cuts, the expected savings may be negated by an increase in activity from Buyers coming back into the market. Supply and demand. Right now, we have better supply, more choice for Buyers and fixed-rate mortgages that are on the downward trend. If you can find a home that you like and can afford now, this may actually be the smart time to act.
Does it make sense for you as a Buyer or as a Seller to make a move now or should you wait? The above information should not be taken as advice as it is merely opinion sprinkled with statistics. Everyone’s situation is different, and you should consult with an experienced Real Estate Professional who understands today’s market to find out what’s right for you and your specific property/situation.
I would be happy to discuss your unique situation and provide you with up-to-date advice. Contact me for a complimentary in-home consultation.
