Market statistics are supplied by the Woodstock-Ingersoll and District Real Estate Board. For full statistics, visit the Board’s website.
Average Residential Sale Price
The average price of homes sold in December 2017 was $336,515, rising 16.1% from December 2016.
Avg. Price Year-to-Date
The year-to-date average price was $341,526, up 18.9% compared to 2016.
Units Sold in Month
62 residential units were sold in December, down 29.5% from a year earlier, but in line with most other years.
Units Sold Year-to-Date
Year-to-date home sales numbered 1,685 units, up 7.1% from 2016. This sets a new annual record.
Active supply remains at all-time lows. There were just 153 active residential listings on the Board’s MLS® System at the end of December 2017, down 25% from levels at the end of 2016.
New residential listings coming to market in December amounted to just 67 units, down 22.1% from a year earlier.
Months of Inventory
There was just 2.5 months of inventory at the end of December 2017, barely up from 2.3 months at the end of December 2016 and far below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
My Market Outlook
2018 Begins. Is this Deja Vu?
You ever have one of those feelings that whatever you are doing now, happened before? Well 2018 is looking a lot like 2017 and we are barely 3 weeks into the new year. Buyers are coming out of the winter slumber and inventory is critically low making it just as difficult to find something to show or offer on. Then when we do find a decent listing, we are faced once again with multiple offers pushing the asking prices higher and higher.
It’s no secret that we (us in REALTOR nation) need an avalanche of listings at all price points to supply the eager buyers. Even the gradual rise in interest rates doesn’t seem to have much effect on the demand we are seeing locally.
Sellers Are Making Gains:
As I had wrote in my previous market review, I expected Sellers to do well this winter. I don’t have a crystal ball but it seems my premonitions are coming true. List your property this winter, get a head start on the spring market and you will not be sorry. After a lull in the market since the summer it is responding well here in the early going of 2018.
Tips For Buyers:
All I can say for Buyers this winter is get ready, get your own “house” in order. You want to make sure your financials are in order, that you are pre-approved for a mortgage and ready to pounce when the time comes. The less conditions you require in an offer will go a long way to winning out on that property you really want. I do urge all my Buyers to include financing and a home inspection in any offer.
If you are a Buyer with your own property to sell and need to include a “condition of sale” (COS) in an offer, it gets a little tricky in this market but isn’t insurmountable.
My suggestions regarding a COS:
Be the first one to put an offer in. Getting your offer in first puts you in the driver’s seat and it’s more likely the Seller will accept it if there are no other competing offers in the mix.
Consider properties that have been lingering on the market for longer than usual. Maybe the property is a bit over-priced and is putting off some buyers. Sellers in these situations may be feeling frustrated and eager to get a deal done leaving the door open for offers that include a COS.
Be prepared to offer over asking price. Unfortunately, a Buyer’s COS can negatively affect a Seller’s ability to make an offer on a property they want to purchase as the Sellers are sort of forced into limbo without assurances which could last a month or more. To mitigate this scenario, the Buyer will ultimately have to offer more financially than compared to a typical cash offer.
If you have any questions regarding the local real estate market, please feel free to contact me here.