Well, we are now fully into mid January and 2018 is in full swing. Hopefully those of you that made new year’s resolutions have stuck to them so far ☺. If one of your resolutions was to stay informed on the Windsor-Essex real estate market, then you have come to the right place! Today, we are going to be reviewing the 2017 Windsor-Essex County Association of Realtors statistics.
Listings Year Over Year Fell 2%
Listings were slightly down from 2016, and many people already thought 2016 was a year of low inventory. In 2017, we burned through even more inventory and there are less properties for buyers to go around as we start 2018. One might’ve assumed the hot market would entice more people to list their properties but the stats don’t tell that story.
Units Sold Rose 2% Year Over Year
The total number of property transactions increased by 2% over a great 2016 year! It's not a huge increase, but combining that with a decline in listings and inventory being eaten up, a 2% increase in units sales isn't enough to explain all the craziness of the 2017 market. That leads us to our next stat...
Average Sale Price Increased 17% Year Over Year
The Average sale price in the area increased from from $225,906 to $264,750 during that period. A banner year on a percentage basis and one of the best our local market has even seen. Strong activity across the board and a healthy sellers market. But when comparing the price increase to the listing and unit sales activity (with modest moves), the number seems a little out of whack. Why is that? To try to figure it out we’ll dive into the December monthly statistics.
In December 2017, 16.83% of sales were of Properties that Sold for $420,000+
When the board breaks down sales by price range, they have increments of $40,000-$60,000. Starting at $0-$60,000, $60,000-$99,999, etc, up to $420,000+ as the highest range, the highest range had the second highest sales activity next to only $140,000-$179,999 (17.16%). Basically, we’ve been selling way more high priced properties! I think a lot of this can be contributed to the booming year in new construction and for detached homes, with $420,000+ at the low end of that price range. The next point will help us further illustrate and hopefully drive the message home.
In December 2017, Average sale price increased 36% Year Over Year!
Wow, now that is pretty amazing. Prices in those 30 days went from an average of $220,053 in 2016, all the way to $300,314 in 2017. The first time we ever remember seeing an average price with a 3 handle! Not that long ago our average prices still had a 1 handle! In this 30 day period the main contributor to the huge spike in average prices was the healthy activity in the higher priced properties.
There is our brief but hopefully helpful review of the 2017 market statistics. If there are any topics you’d like to read about in 2018, drop us a line and we’d be happy to try and incorporate it into a future post. Happy new year everyone!