Well folks looks like the Windsor/Essex County Real Estate Market has finally exceeded an average sale price of $400,000. Who would have guessed that during a world-wide pandemic in an area that just very recently moved into Ontario’s Phase 2 plan (with portions of Essex County still remaining in Phase 1!), that we would see so much demand in Real Estate.
We know that the Real Estate Market for the most part is fueled by supply and demand. June of 2020 certainly has shown what a lack of inventory can do. June 2020 listings in Windsor/Essex are down 7.35% compared to this time a year ago at 882 units and sales are down 3.42% at 649 units for the same period.
Average sale price has increased by a hefty 21.09% to $406,113 compared to a year ago- why such an increase? Simple, high demand with incredibly low inventory levels. Listings are down 7.35% but demand is high with sales only down by 3.42%. Shouldn’t sales be higher if the market is so hot? You can’t sell what you don’t have, so without more listings this will remain a very competitive local market driving up the average sale price as Buyers complete against many other Buyers for properties in some price points.
But wait a minute, I’ve been reading so many articles about real estate prices expected to fall (for example CMHC’s prediction of an 18% drop in real estate prices which has now been downgraded to only a 12% drop in prices). So why is Windsor/Essex at a 21.09% increase in average sale price? If anyone knows me you know that I am not a fan of averages. As i’ve always said, real estate is a very local animal so how can market conditions in Vancouver, Toronto and Ottawa be the same as Nunavut, Gander NL or Fort McMurry? Even the very statistics that I just listed above are perhaps very different for your location or price point within Essex County.
Will prices go down in the future? What about when the government incentives/support runs out? If a second wave grips the country such as may be happening in areas of the United States? Maybe, from the very beginning of this pandemic it made perfect sense to believe that the real estate market would be impacted negatively, and it still does, doesn’t it? Am I biased towards Sellers .. or Buyers? Neither, I want my Sellers to get the most amount of money possible for their largest investment and I also feel for my Buyers who constantly compete with other Buyers sometimes with $100k over asking prices in such a hot market. While the balanced market that many would prefer may be some time away, all we can do is review the facts and our local Real Estate Board (WECAR’s) statistics are the best way to see what’s happening in our own backyard – not half a continent away.
In Windsor/Essex if you are buying or selling in the under $300k range you could be experiencing an unbelievable number of offers and very high over asking perhaps even higher percentage than the average stated above and on the flip side if you’re in the $million dollar price point competing offers are scarce and your average sale price can be much lower than the average sale price stated above. Do you have a typical average priced subdivision home in pristine condition, do you have a farm property or perhaps a waterfront property that’s been impacted by rising water levels. Point is that averages are wonderful for a snapshot of the overall health of a market but you need to understand exactly what the home you are buying or selling can be worth in your location, price point and condition. Comparing homes by their list price in this local market has become nearly useless, especially in the average or below average price points.
Feel free to contact me to discuss your unique situation. Steve Blais, Sales Rep with REMAX Preferred Realty 226-347-6945 or visit www.SteveBlais.com. Take care and stay safe!
