Market update for the First 7 months of 2021 in Oxford County.
Monday Aug 02nd, 2021
OXFORD COUNTY:
Listings have been marginally declining since the peak in May at 328 new listings coming to market. In June 254 homes came to Market across the County and dropped again in July to only 239 homes being listed. When added to the few remaining previously listed homes supplies remain limited. The number of homes offered for sale has consistently remained just under 2 months’ supply. Remember a balanced market, where bidding wars don’t take place, is 6 months’ supply!
The bidding wars are continuing. In February Homeowners averaged over 111 % of asking prices. In March this ratio dropped marginally to 110.6% and fell again in April to 109.8% of asking prices, May 108.7% of asking prices and then fell to 104.6% above asking in June, with the number of homes sold dropping below the last 3-month average. June is usually the biggest sales month of the year. The average selling price to listing price remained at 104.0% above asking in July.
Remember in January we started the year with 92 homes sold across the County. We peaked in May with sales of 267 homes selling. June was quieter, as detailed above, with sales of only 222 homes and fell again in July to 197 homes sold during the month.
Inventories of available properties remain unusually tight, however, even with constant bidding wars occurring the average selling prices have been sitting around the $635,000 mark. The average selling price peaked in June, across the County, at $649,211, falling during July to $609,131, however with the lowest number of homes sold during month since March. The average number of days to sell a home has risen from a low in April and May of 10 days, to 12 days in June and 15 days in July.
Homeowners trying to push the market by listing at a top selling price for a specific size and feature home are not receiving bidding wars and usually end up selling 2% to 3% below listing price. Homes priced below market at $599,900, about $50K to $75K below value are getting massive bids and often do better than a market priced home. Buyers from out of town, with an out-of-town Realtor, are looking at Realtor.ca and can only see competing homes for sale.
WOODSTOCK:
In January there were only 35 new listings on homes offered for sale, since then the number of homes offered for sale has steadily increased month by month peaking in May at 116 homes available, falling marginally to 110 new listings in June and 106 new listings in July. When added to the few remaining, previously listed homes, inventories of available homes remain limited. The last few months have seen a marginal increase to about 1 ½ months’ supply, dropping in July to just over a month’s supply. Remember a balanced market is 6 months’ supply!
The bidding wars are still occurring. This means every properly priced home has experienced Bidding Wars. The highest listing to sell price ratio occurred in May at 109.4% of asking prices. The percentage of over bidding has slipped in this year’s unusually quieter months of June and July with offers successful at 104.6% and 104.0% of asking prices, respectively. The number of days to sell a home has steadily increased form only 8 days in March and April to 17 days in July.
Do not forget the number of homes sold in Woodstock have been steady, limited by low inventories and driven by bidding wars. In March we sold 105 homes. In April, this number fell a bit to 98 homes selling, in May sales jumped to 116 homes sold, in June things leveled to 110 homes sold and finishing July selling 106 homes across the city of Woodstock.
The highest average selling price was realized back in March at $629,055. The average price in May fell to $577,154 and rose again in June to $618,817, slipping again in July to$583,389. Remember homeowners are still getting 104% of their asking prices.
INGERSOLL:
NORWICH TOWNSHIP:
Remember that inventories and therefore sales are minimal. Price performance is really the result of the Township’s proximity to Woodstock.
In January there were 14 new listings, February 15 new listings, March 20 new listings, April 19 listings, May 21 new listing, dropping a bit in June to only 12 homes coming to market. Numbers improved in July to 18 homes coming to market. Added to the few remaining previously listed homes the inventories of available homes remain limited. With aggressive sales in this area inventories averaged below 2 months’ supply except the month of July when it rose to 3.5 months of homes coming to market. Remember a balanced market is 6 months’ supply!
In January homeowners averaged 97.9 % of asking price. Bidding Wars began in February and have not stopped. In February, April, May and June, homeowners averaged above 100% of asking prices. In March, this competitive activity peaked at 104.5% of asking prices and finished up July with the highest listing price to selling ratio for the year so far, at 105% of asking prices. For most of the spring it took an average of 15 days to sell a home. In July this dropped to an average of 12 days across the Township.
Let us look at sales across Norwich Township. In January we started the year with 11 homes sold across the Township. In February, this number increased to 20 homes sold. In the months of March, April and May the average number of sales was 17 homes per month. In June, this number settled at 10 homes sold and fell again in July to 7 homes sold. July is typically a quiet month.
With this continuing tight inventory of homes available, what did this do to prices? January started the year at a whopping average price of $770,727. In February, an average value of $699,460, March bounced back to $738,670, April came in $653,479. May jumped to an average price $711,358. The average house price peaked in June in the township at $832,269. July fell back to $728,414
SUMMARY:
Always remember, I am here to help in any way that I can be of service to you and your family.
First, I have a message for First Time Home Buyers. In this crazy on-going Covid Market, you may need Family support for the down payment to help you bid what appears to be 10% to 15% over the asking price. The first step is to get pre-qualified by a Mortgage Broker or your Bank. Once you find out what you can reasonably afford, plan to bid above the asking price as described above with a Cash, Non-Conditional Offer with a short closing if you are renting. With the average price still rising, you will logically be able to pay back Mom and Dad within 24 months. As your Realtor, I will investigate market values in your planned neighbourhood and provide comparable sales.
Now for you Move-Up Buyers, now is the best time to use some of that equity that you have built up over the last year. The first step is to get pre-qualified by your existing mortgage holder and outline how your new mortgage will be blended without penalty. Once you find out what you can reasonably afford, I will evaluate the Market Value of your home and outline all contingencies at no cost to you. This will give you the ability to safely overbid the asking price with a Cash Non-Conditional Offer and a closing of 2 to 3 months. If priced reasonably, you can expect the same over-bidding that you are making. Your equity will cover the excess price on Closing. With the average home selling within 2 weeks, the risk is virtually non-existent.
Lastly, if you do not have to sell, this is the worst time to do so! Every day that passes brings increased equity to our current homeowners.
I am here ready to assist!
Do not wait, pick up the phone, or email and I will be at your side, looking after the best interests of You and Your Family!
Just Call:
Cell- 519-535-3975
Ohome Office- 548-688-8833
Email- gib@youtfavouriterealtors.com
MLS connected Website – https://OxfordProperties.ca
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