The statistics are now in from WECAR (The Windsor Essex County Association of REALTORS ®) for June 2022. The correction continues! Our new average sale price is $607,704! That’s a 9.24% increase from this time a year ago but a decrease of 6.12% from last month (May 2022 avg price was $647,331!). *(The Median sale price for June 2022 was $561,200).
There were 1,438 new listings in May 2022 compared to 1,557 new listings in June 2022. This is up from last month and is an increase of 35.39% from the same time last year. There were 583 sales in May 2022 compared with 545 sales in June 2022 which is down from last month and down 27.91% from this time last year.
The most popular home styles in June 2022 were:
1st – Bungalow (126 sales) $483,651
2nd – Ranch (87 sales) $700,271
3rd – 1.5 Storey (68 sales) $497,278
4th – 2 Storey (60 sales) $761,013
5th – Raised Ranch (59 sales) $699,525
Currently we are sitting at a 2.2 months supply of inventory (a balanced market would be 4-6 months of inventory). Last month we were at 1.6 months of inventory.
Wondering what your price category looks like in June 2022? here’s the breakdown:
Sales by Price Category
$0 – $159,900 (2)
$160,000 – $299,999 (26)
$300,000 – $449,999 (158)
$450,000 – $599,999 (163)
$600,000 – $749,999 (218)
$750,000 – $899,999 (46)
$900,000 – $1,199,999 (71)
$1,200,000 – 1,399,999 (3)
$1,400,000 + (10)
If you’re wondering what the June 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 993 – Sold 349)
10 – Amherstburg – (List 104 – Sold 29)
20 – Colchester / Harrow – (List 28 – Sold 12)
30 – Kingsville- (List 76 – Sold 20)
40 – Leamington – (List 101 – Sold 37)
50 – Wheatley – (List 18 – Sold 7)
60 – Lakeshore West – (List 78 – Sold 27)
70 – Essex – (List 50 – Sold 24)
80 – Lakeshore East – (List 33- Sold 12)
90 – Tilbury – (List 43 – Sold 19)
In case your wondering, here’s what the average price has looked like for the month of June since 2016:
2022 – $607,704
2021 – $555,544
2020 – $406,113
2019 – $337,923
2018 – $303,181
2017 – $274,789
2016 – $231,880
What does all this mean?
The correction continues (not only in our local market but in general across the country and in many countries). Listing inventory continues to increase while sales are decreasing. The average price for June 2022 is $39,627 lower than last month’s average price, however the average price for June 2022 is up 9.24% compared to this time last year which is still a considerable amount of annual appreciation in comparison to the gains of pretty much any other investment vehicle out there in today’s economy! With 2.2 months’ worth of inventory, we’re still in a Seller’s market from an inventory perspective although it feels as though we’re more balanced. Is it currently a Buyer’s, Balanced or Seller’s market you ask? Well that depends on the metrics you’re using to make that determination.
We’re expecting interest rates to continue rising so buying power for the average Buyer will continue to be reduced in the coming months. There are four more rate policy review dates for the Bank of Canada in 2022, (July 13, September 7, October 26 and December 7th) and it’s likely that we will continue to see rates climb. The correction is necessary to battle high inflation levels. Are we in a recession? is one coming soon? A topic argued by some of the brightest economists in the country, but the fact is that we’re all experiencing the increased prices at the pumps, grocery stores and pretty much everywhere! Does it matter what we label it? Life is expensive either way right now!
Currently we continue to be in the awkward transitional phase as the local real estate market slowly becomes more balanced. Some listings are priced low to attract multiple offers and over asking sale prices, some are priced near market value with negotiations and conditional offers reappearing in the marketplace. We are slowly seeing the number of homes listed near market value increasing, however there are still more homes being priced low to attract multiple bids and over-asking sales than homes priced near market value. I suspect this will continue shifting going forward. Sellers, how do you know which method will generate the best results for selling your home? Buyers, how do you know what price range you should be looking in right now? This is where choosing the right REALTOR who has their finger on the pulse of what’s happening TODAY is so important! This market is changing on a daily and weekly basis. Waiting for monthly statistics to arrive leaves you unaware of current trends in the marketplace.
Is it still a good time to sell?
With rates and inventory expected to rise further, while sales are decreasing – if you’re thinking of selling, now is a good time to hit the market before rates and inventory numbers climb even further. With increasing interest rates and higher stress test qualification, Buyers naturally will afford less home for their money. The $300k to $750k sale price range is by far the most active category currently while the million-dollar range has been seeing less activity in June.
So, is it a good time to buy?
Yes, why? Inventory levels continue to climb offering Buyers more choice and, in many cases, less competition for homes. Should you wait longer to buy? maybe prices will decline even further? We are expecting additional mortgage rate hikes so the cost of waiting may offset any benefit from higher inventory levels and decreases in pricing. It is impossible to time the market to buy at the absolute lowest point. If it’s been some time since you received a pre-approval for home shopping, PLEASE check with your mortgage professional as your qualification level has likely changed due to stress test requirements etc.
What about new homes?
New construction supply remains low, although there are some new developments on the horizon. The cost to builders for materials in 2022 has increased significantly not to mention labour increases. With prices stabilizing, builders are having trouble passing on cost increases to Buyers. Now is a good time to consider a new build if you can find the availability in the location you want to be in! Choose a REALTOR who knows the new construction segment well as much of the availability isn’t on Realtor.ca.
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.
Steve Blais
Sales Representative / Team General Manager
Angie Goulet and Associates, RE/MAX Preferred Realty Ltd. – Brokerage
Call me direct at 226-347-6945 or email: steve@steveblais.com
Enjoy this warm 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.
