The average price of homes sold in August 2017 was $324,300, rising 5.3% from August 2016.
Avg. Price Year-to-Date
The year-to-date average price was $342,699, up 21.3% compared to this time in 2016.
Units Sold in Month
91 residential units were sold in August, falling 36.8% from a year earlier.
Units Sold Year-to-Date
Year-to-date home sales numbered 1,200 units, up 14.4% from this time last year. This still continues to lead all years on record.
Active supply continues trending on the low end. There were 270 active residential listings on the Board’s MLS® System at the end of August 2017, up 17.9% from levels at the end of August 2016.
Months of Inventory
There was 3 months of inventory at the end of August 2017, up from 1.6 months at the end of August 2016. 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
Did you hear that?
That was the sound of the door slamming shut on the seller’s market. Well at least for the time being. The market has cooled over the summer months as buyers haven’t been buying as much and sellers haven’t been listing as much. The months of inventory on hand has increased from 1.8 months in June, 2.2 months in July and 3 months in August. This is almost back to the pre-seller’s market era which ran around 3-4 months inventory on hand locally at any given time.
Slowing Rate of Turnover
The stats give a strange scenario. Although the months of inventory on hand has increased, it doesn’t mean that we all of a sudden have more homes coming to market, actually the opposite is true. New listings in August were low, really low. What has happened is that buyer demand, coupled with buyer fatigue, has slowed considerably and therefore created a glut of listings remain on the market longer than usual. In my opinion, many sellers are still trying to get the “seller’s market” prices in today’s tempered market. The market changed, and it changed fast. So now we have a slower rate of sales turnover unlike what we saw in late winter and spring.
Good & Bad News for Buyers
The market stats show some really good news for buyers, even first-time home buyers. As homes linger on the market there are better chances of getting a decent deal on your home purchase. Sure, average real estate prices have increased over the last 2 years but they have leveled off recently and the period of multiple competing offers is all but dead (well…for now) in most instances. Thankfully, I have noticed buyers that had seem to disappear and drop out of the market earlier in the year are now trickling back into the fold.
Now the bad news for buyers. It is becoming more difficult to get the financing required to buy a home. Government intervention & policies to slow the real estate market are having an effect on buyers’ ability to make a home purchase. I suggest that if you are a considering buying in the near future that you enlist the help of either your bank’s mortgage specialist or a local mortgage broker. Make an appointment, discuss all your options and get a plan together before you jump into the real estate market. This is the largest purchase you will ever make, so do your homework to eliminate any disappointment in the process.
If you require a mortgage broker or specialist, get in touch with me and I can send you a list of qualified professionals.