The region is currently sitting at its highest inventory level since the summer of 2016, as sellers edge back into the market and many buyers continue to put plans on hold hoping lower rates are on the horizon.
Having more properties on the market doesn’t necessarily mean things are dramatically different in the marketplace though. Well priced properties in popular neighbourhoods are still frequently receiving multiple offers and lots of interest from buyers. Overall the market dynamics are moving to a more balanced position.
Market Analysis
Pricing: Over the past year, real estate prices have remained stable, showing little change month to month and April saw a continuation of that trend with the median 12-month rolling sale price remaining at $745,000.
Sales Volume: April is typically one of the busier months of the year for sales in real estate. This year however we continued the trend from last month, seeing only 695 sales, 17% below the median number of sales in the previous twelve Aprils. We are however, up 3.7% from last April and 15.8% from March of this year, leading many to more optimistic outlooks for the balance of the spring market.
Inventory: With lower than typical sales volume and a growing number of new properties coming onto the market, inventory in the region continues the upward trajectory that it has been on since hitting its low in late 2021, early 2022. The number of new listings increased a staggering 40% over April of 2023, with 1,444 new properties coming on to the market, April exceeding its 12 year median for the month by 9.7%
Days on Market (DOM): Median and average DOM saw a slight increase in April, both edging up by a day to come in at 12 and 20 days respectively.
Pricing Dynamics: Median and average DOM saw a slight increase in April, both edging up by a day to come in at 12 and 20 days respectively.
Segment Analysis: Detached and attached properties diverged in their trend lines last month, though very slightly. Detached houses saw a 0.23% increase in median price, while attached houses pulled back 0.76%. Likely just an unusual blip as sales and DOM remained comparable between the two segments.
Recent Market Activity: The continuing uptick in the number of new properties coming available on the market and the increase in median sales price continue to point to signs of recovery in the market. However, housing is influenced by so many external factors. Whether or not these trends will persist depends on buyer sentiment, government actions, mortgage rate changes and changes in the overall economy.
Recommendations for Homeowners:
Pricing Strategy: Given the stability in median prices and consistent pricing dynamics, homeowners are advised to set competitive yet realistic listing prices. Check out our article on Pricing Psychology.
Market Awareness: Stay informed about market trends and fluctuations to make informed decisions regarding timing and pricing when listing your property.
Property Preparation: Ensure your property is well-maintained and presented attractively to appeal to potential buyers, especially in a competitive market environment, is key to a successful sale.
Flexibility: Understand that market conditions can change rapidly, so be prepared to adjust strategies and expectations accordingly.
Downloadable Neighbourhood Reports
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Wellington County Wilmot Woolwich and Wellesley
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Statistics compiled from information available on the ITSO Database as of May 7, 2024. The Median Historical Sale Price in the graphic represents year-to-date value. All other values represent a 12 month rolling.