The average price of homes sold in May 2017 was $351,229 rising 19.9% from May 2016.
Avg. Price Year-to-Date
The year-to-date average price was $344,712 up 25.6% compared to this time in 2016.
Units Sold in Month
224 residential units were sold in May, rising 47.4% from a year earlier.
Units Sold Year-to-Date
Year-to-date home sales numbered 825 units, up 33.9% from this time last year. This is a record for the first five months of any year.
Active supply is trending at all-time lows. There were just 229 active residential listings on the Board’s MLS® System at the end of May 2017, down 21% from levels at the end of May 2016.
Months of Inventory
There was just one month of inventory at the end of May 2017, down from 1.9 months at the end of May 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.
Market statistics are supplied by the Woodstock-Ingersoll and District Real Estate Board. For full statistics, visit the Board’s website.
My Market Outlook
A subtle change developed in the local market during the month of May that is not reflected in numbers or stats. Sure, the average sale price remains higher than previous years, and it is still a seller’s market, but the number of competing offers seem to be down from previous months. Are buyers taking a break or have some dropped out of the market altogether due to losing out on previous offers to a competitor? Are we finally seeing buyer fatigue?
Although some agents are still holding off on accepting offers on their listings in order to get competing offers and raise the selling prices for their sellers, that strategy has been running out of steam as of late. For several months this strategy had become the norm but it may actually be now working against sellers. Many sellers are no longer receiving competing offers and listing agents are choosing to go back to the traditional “first come, first served” offering process.
So why is this happening? Buyers that have been searching for something to buy for months are staying away from listings that contain the “no offers accepted until…” phrase. It has become a red flag to these buyers since they have been through the ringer, losing out on competing offers. Why would you want to keep setting yourself for another heart breaker? Do you need the added stress of competition? All this special phrase tells buyers is “stay away because you can’t afford to get in a bidding war”.
With many buyers no longer willing to go in on competing offers or dropping completely out of the market, it is understandable that demand, although still strong, is leveling off. As a result, prices are also beginning to level off. Let me explain though, “leveling off” and “declining” are two different terms. Prices are not declining. By leveling off, I mean that we are seeing more and more listings selling at or below list price. However they are still listed at higher prices than they were last year at this time.
My suggestion to potential buyers is to hold off if you can. With the summer months, family vacations and seasonal factory shutdowns coming, you may be able to secure your new home without competition. Sellers may also be motivated to sell quickly before the next school season begins, spelling a win-win for buyers.
Sellers be warned that you may not receive the same offers that were coming like wild fire just months ago. That’s not to say your home value has dropped, but you likely won’t get that extra bit of cash you had hoped for. If you are considering listing, I suggest staying away from the “withholding offers until a certain date” clause. You may actually be driving buyers away with this strategy. Go with the traditional way of offering and you will still get the fair market value for you property.