The average price of homes sold in June 2017 was $350,368, rising 27.1% from June 2016.
Avg. Price Year-to-Date
The year-to-date average price was $345,607, up 25.8% compared to this time in 2016.
Units Sold in Month
155 residential units were sold in June, down 1.9% from a year earlier.
Units Sold Year-to-Date
Year-to-date home sales numbered 980 units, up 26.6% from this time last year. This figure continues a record trend above any other year.
Active supply is trending at all-time lows. There were just 281 active residential listings on the Board’s MLS® System at the end of June 2017, down 1.4% from levels at the end of June 2016.
Months of Inventory
There was 1.8 months of inventory at the end of June 2017, matching June 2016 and still 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.
Market statistics are supplied by the Woodstock-Ingersoll and District Real Estate Board. For full statistics, visit the Board’s website.
My Market Outlook
I suggested to Buyers in last month’s Market Review to hold off on making a purchase to see if prices drop in the summer months ahead. This seems to becoming to fruition. Over the last few weeks, more and more residential listings have taken price reductions. There could be a few factors in play here. First, these homes were listed just as the market began to cool off in mid-May and both agents and sellers believed the upward pricing trend would continue. Secondly, as June approached, Buyers became more focused on the coming summer months and vacations which always seems to happen this time of year. Lastly, recently announced changes in government housing policy affecting the Toronto and Golden Horseshoe region have taken aim at rising home prices and may have had a trickle-down effect to our local market. This has curtailed demand somewhat (69 less units were sold in June than in May), leading us to re-evaluate the market and list prices.
Although the number of local listings remains at record lows locally, the demand has also taken a step back recently making a move closer to a more balanced market. How long this will last is anyone’s guess. This could simply be a short ‘sigh’ until after the usual summer season lull. We likely won’t know for sure until mid-August and into September.
Having said all that,…average home sale prices have remained strong around the $350,000 mark for the past 3 months. Simply because demand has slipped, and prices have leveled off in the past few weeks does not mean home values will suddenly drop back to average levels of years passed. The next couple of months could be a win-win for both Buyers and Sellers, giving both parties what they want.