May 2022 Residential Real Estate Market Update for Windsor/Essex County
The statistics are now in from WECAR (The Windsor Essex County Association of REALTORS ®) for May 2022. The market is shifting! Our new average sale price is $647,331! That’s a 14.73% increase from this time a year ago but a decrease of 6.56% from last month (April 2022 avg price was $692,759!). *(The Median sale price for May 2022 was $595,000).
There were 1,074 new listings in April 2022 compared to 1,438 new listings in May 2022. This is up from last month and is an increase of 37.87% from the same time last year. There were 586 sales in April 2022 compared with 583 sales in May 2022 which is down from last month and down 20.46% from this time last year.
The most popular home styles in May 2022 were:
1st – Bungalow (134 sales) $517,102
2nd – 2 Storey (87 sales) $784,271
3rd – Ranch (72 sales) $768,575
4th – 1.5 Storey (65 sales) $492,522
5th – Raised Ranch (65 sales) $729,866
Currently we are sitting at a 1.6 months’ supply of inventory (so that means we currently have just over six 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 May 2022? here’s the breakdown:
Sales by Price Category
$0 – $159,900 (0)
$160,000 – $299,999 (20)
$300,000 – $449,999 (143)
$450,000 – $599,999 (179)
$600,000 – $749,999 (145)
$750,000 – $899,999 (83)
$900,000 – $1,199,999 (42)
$1,200,000 – 1,399,999 (14)
$1,400,000 + (13)
If you’re wondering what the May 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 922 – Sold 371)
10 – Amherstburg – (List 106 – Sold 35)
20 – Colchester / Harrow – (List 28 – Sold 14)
30 – Kingsville- (List 64 – Sold 29)
40 – Leamington – (List 90 – Sold 41)
50 – Wheatley – (List 7 – Sold 1)
60 – Lakeshore West – (List 78 – Sold 26)
70 – Essex – (List 39 – Sold 21)
80 – Lakeshore East – (List 36- Sold 19)
90 – Tilbury – (List 28 – Sold 14)
In case your wondering, here’s what the average price has looked like for the month of May since 2016:
2022 – $647,331
2021 – $563,409
2020 – $384,311
2019 – $334,446
2018 – $300,026
2017 – $282,134
2016 – $235,011
What does all this mean?
Yes, the market is changing. Listings are up and sales are down. Average price for May 2022 is $45,428 lower than last month’s average price however average price is up 14.73% compared to this time last year which is still a considerable amount of appreciation! With currently just over 6 weeks’ (1.6 months) worth of inventory we’re still far from a balanced market from an inventory perspective. Typical seasonality has more inventory on the market and continuously rising interest rates are reducing buying power for Buyers (but they now have much more choice!).
We’re expecting interest rates to continue rising so buying power for the average buyer will continue to be reduced in the coming months. The correction is necessary to battle high inflation levels as we all take on second mortgages to fill our gas tanks and visit the grocery store. This is that awkward transitional phase as we slowly become more balanced. Some listings priced low to attract multiple offers and over asking sale prices, some priced near market value with negotiations and yes, we’re even seeing conditional offers reappearing in the marketplace. As we progress in the months to come, I suspect we may see a larger trend towards pricing at near market value. The number of offers on properties has decreased with some receiving no offers come offer date. This is where choosing the right REALTOR who has their finger on the pulse of what’s happening TODAY is so important!
Is it still a good time to sell?
With rates expected to rise further and inventory also increasing 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.
So, is it a good time to buy?
Yes, why? Inventory levels are climbing 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 slight decreases in pricing. 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.
What about new homes?
This still hasn’t really changed much. New construction supply remains low, although prices appear to have stabilized somewhat. 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.
Call me at 226-347-6945 or email: steve@steveblais.com\
Team Angie Goulet and Associates, RE/MAX Preferred Realty Ltd. – Brokerage
Summer’s here! Enjoy yourself!
*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.
