We now have 6 months sales under our belts and there has been no "Bubble"! Inventories of single family homes offered for sale are down 18.2% currently versus June 2012. As of July 1, 2012 there were 497 homes being offered for sale versus 607 in 2011. Unit sales for the first 6 months are also down by 9.3%. Fewer homes to choose from. Prices as a result continue to show strength and reasonable appreciation. Prices are up 2.8% at the end June 2012 when compared to the same 6 month period in 2011. The average house price across the county now sits at $228,114 versus $221,941 for 2011. Other indicators of a move to a Seller's Market are an improvement in the percentage of asking price received, it has increased from an average of 96% to 97%. In addition, the average days it takes to sell a typical home has also decreased from 88 days to 78 days. If the supply of homes remains in balance prices will continue to hold and show modest gains.
Woodstock:
Woodstock accounts for 61.7% of all sales of homes across this Real Estate Board's jurisdiction in Oxford County. The average price of a home in the City of Woodstock now sits at $222,647 for the 6 months ending on June 30, 2012. This is a 2.1% increase from last year's average price of $218,004. Inventories of homes offered for sale are 25.3% lower than last year at the same time. Sell though of active listings is moving up significantly. The number of homes sold without expiring jumped from 50/50 chance (the normal average) to 60/40 chance in 2012. At the current sales levels the MLS system is carrying slightly more than 4 month supply (260 homes). Home sellers are currently getting 98% of asking price. Once again prices are going to remain solid as long as these inventories remain in balance.
Ingersoll:
The price advantage of buying a home in Ingersoll now sits at 12% variance to a similar home in Woodstock. Ingersoll has shown steady sales growth over the last few months. Sales are off 3.3% or 4 units on a year to date basis (86 units versus 89 units). June was a fantastic month with sales of 26 homes compared to 14 in June 2011. Remember, average monthly sales have been under 14 units. Let's look at prices! The average house price has risen 4.9% to $208,159 up from $198,477. Inventories are level with 2011. If you remember our comments in 2011, we felt the Ingersoll was prime for a price increase. We are still under inventoried and therefore prices should hold. Home owners are getting 98% of their asking price. When a home is listed for sale in Ingersoll it takes 59 days on average to sell the home. However there is only a 49% chance of completing a sale during the typical listing period. This would indicate that the home must be priced properly, show well and be properly marketed.
Should I Buy Now?
This is not Vancouver, nor is it Toronto. Our prices have risen slowly, and steadily, and to our recollection never reached double digits in a single year since the market rebounded in the early 2000's. The US housing market is still lackluster, but now there is at least talk that it is bottoming out...That would indicate that it has a long hard road back to "Normal". This factor should hold interest rates down. Projections of interest rate gains over the next couple of years have never been higher than 1%. The Canadian Government once again implemented more controls on mortgages, another indicator that they do not see rated climbing soon..Lastly the best indicator of all is "Can You Buy For Less Than Rent?" If the answer is still "YES" than it is reasonable that prices will hold and grow... and it it a great time to BUY! Our Mortgage Broker just offered us 2.99% - Five year locked in financing for properties closing June 30 and 3.05% for property closing July 31, 2012.
We ask..."Why wouldn't you Buy or Move Up now?"
When Do Homes Sell:
The peak of the home selling season is typically June. It is driven by the fact that closing average about 60 days. This puts new home buyers into their new home in time for "Back to School'. We notice a second lift in volume as we move to September October. The slowest months of the year are typically December and January, then it starts all over.
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