Market Trends and Home Sales Across Oxford County in 2022
Tuesday Jan 31st, 2023
Well, we have just finished the most tumultuous years in Real Estate History, driven by rampant worldwide inflation increases and Bank of Canada interest rate increases virtually every month throughout the year.
What has happened to your home value in Oxford County?
Let’s start by looking at the number of sales taking place each month to determine the Impact of the interest rate increase since early 2022. Moving first into what has typically been the highest 3 selling months. In each, we first saw April sales fall by 27.7% to 162 homes sold, down from the high experienced in just the month earlier at 224 homes selling across the County. As each interest rate increase took place, the number of homes selling month by month moved downward. Only May enjoyed an increase up 18.5% over April. Since then, however, the number of homes selling across our County has fallen consistently. June fell below May by 19.3%, July dropped again by another 32.3% to only 105 homes sold across Oxford. We rebounded only marginally in August, but since then sales have fallen consistently, month after month, finishing with only 77 sales in December. This represents a decrease of 60% since the monthly high in March, before interest rate hikes got under way. In December last year, typically the slowest month of the year, Oxford County saw 131 homes change hands, The translates to a decrease of 41.1% in movement from the previous December.
This contributes to a significant increase in available homes based on the monthly supply of homes. Inventories have grown month over month. In July through October inventories ran well in the 600 level of homes available for purchase, falling to 526 homes offered for sale in December. Compare this to December 2021 when only 199 homes were offered. To put his in perspective, the highest inventory level back in 2021 of homes available for sale peaked at 312 homes in June 2021. These new levels translate into the highest number of months of supply of homes at what I believe is a record setting at 7 months in December 2022.
In December 2021 it took an average of 8 days to sell the average home. It now takes an average of 33 days to sell the same home. Bidding wars were everywhere at the start 2022 and did continue right through to July. In August, this suddenly changed and has been consistently running at a traditional and historic “Listing to Selling Price Ratio” of around 97% of asking.
So now what has all this done to prices across the county?
Looking back to 2021, the median average price for the year, in a rising market, was $462,380. In 2022, in January, we started the year at $535,000 rising quickly to a peak of $813, 556 in February. In March the Feds began the interest rate climb, month by month. This obviously had an immediate impact, forcing buyers to constantly re-apply for their pre-approvals. Prices began to fall month by month as buyers withdrew from the market, bottoming finally at $575,000 in August. Since then, prices have risen marginally, but remain relatively flat, finishing the year in December at $550,000. It must also be remembered that December and January are traditionally the slowest months of the year, which can effect price average mix.
The highest number of sales in Oxford County occur in 4 major price categories, first is the $500,000 to $600,000 range followed by $400,000 to $500,000, then $600,000 to $700,000 followed by the $700,000 to $800,000 category.
It appears that the Bank of Canada has paused any further increases. Things should remain stable now for the next few months.
The best advised for “Move-up Buyers” and “First-time Buyers” is lock in your new mortgage for 2 or 3 years, before considering a variable rate mortgage. Prices will rise marginally later this year as Buyers return to the market. I believe we have seen the bottom of the market.
Woodstock Overview:
The number of days it tool to sell the average home jumped from January 2022 at 10 days to 40 days by the end of the year based on the excessively low sales volume throughout the year.
The highest number of active listings occurred across the city in July, at 199 homes offered for sale. It hovered around this level through to October when it finally dropped to 173 homes offered for sale. At the end of the year, in the month of December, there were 125 homes actively offered for sale across the city.
The “Listing to Selling Ratio” now parallels the rest of the county sitting at 97.2% of the asking price. Most homes are being offered for sale based on current selling prices.
The highest median price for a home sold in 2022, in Woodstock, occurred in February reaching $799,995. The downward trend driven by the rise in interest Rate increases began in March and drove the median selling prices in December, down to $519,000 based on a very low sales volume of 36 homes.
The median average selling price for a home in Woodstock for 2021 sat at $680,00.
Ingersoll Overview:
In December 2022, sales fell 55% from December 2021. This translates into only 9 sales across the town compared to 20 homes sold the year before during the same month.
The number of days it takes to sell the average home jumped from January 2022 at 18 days to 38 days by December based on the excessively low sales.
The highest number of active listings occurred across the town in October, at 50 homes offered for sale. It hovered around this level through November. At the end of the year, in the month of December, there were 34 homes offered for sale across the town.
The “Listing to Selling Ratio” now parallels the rest of the county sitting at 97.9% of the asking price. Most homes are being offered for sale based on current selling prices.
Rate increases began in March and median selling prices finished the year, in December, at $518,500 based on a very low sales volume of 9 homes.
The median average selling price for a home in Ingersoll for 2021 sat at $603,444.
Norwich Township Overview:
In December 2022 sales fell 72.7% from December 2021. This translates into only 3 sales across the township compared to 11 homes sold the year before.
The number of days to sell the average home jumped from January 2022 at 16 days to 48 days based on the excessively low sales volume in December 2022.
The highest number of active listings occurred across the town in October, at 83 homes offered for sale. It hovered around this level through November. At the end of the year, in the month of December, there were 72 homes offered for sale across the township. This is exceptionally excessive even based on history pushing supply over 1 year worth of active listings.
The “Listing to Selling Ratio” now parallels the rest of the county sitting at 97.6% of the asking price. Most homes sold are being offered for sale based on current selling prices.
Rate increases began in March and median selling prices finished the year, in December, at $642,000 based on a very low sales volume of 9 homes.
The median average selling price for a home in Norwich Township for 2021 sat at $650,000.
Are you, or someone you know, considering a move or a purchase? Don’t forget I am here always ready to help.
Call me anytime on my cell at 519-535-3975 or email me at gib@yourfavouriterealtors.com. I’m ready any time to help or any questions that you may have.
Stay Safe
Gib Heggtveit
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