What happened to summer? Here we are in the middle of September and in a blink the summer has passed us! We see the kids get back into the swing of school, and everyone getting out and about and back to some sort of normal. In the housing market, the market in the region is still fairly hot, and the seller’s market has continued its trend across the region. The high buyer demand for homes in the area has pushed the price of homes upwards resulting in an increased sales volume this past month.
The demand remains high across the tri-city region, but we will delve into Wellington County numbers for a snapshot of where we are at the end of August 2021.
The year to date sales volume at end of August 2021 is up 69% over 2020 numbers, where 2021 sales volume to date is almost $2.6B at end of August over 2020 YTD sales volume of $1.5B. The unit sales are at 3,214 for the county which is up 33% compared to 2020 YTD numbers of 2422 units sold.
During the month of August, supply of homes for sale was still at a low but sales volume remained relative to this time last year. Sales volumes were up 1.18% with $253M in sales compared to $250M of last August 2020, but actual unit sales were down 15% with only 318 units sold compared to 378 units sold last August. Further, there was a 36% decrease in listings last month with only 343 new listings in August down from the 534 listings of August 2020.
Thus, with unit sales down, the higher prices of 2021 is keeping sales volume in line but actual unit sales is affected and those numbers showing a shift in the market. Nonetheless, I believe many frustrated buyers decided to take a summer break from the market and enjoy the new re-openings and the summer season, and we will likely see volume spike back up in September.
The buyer activity that was present continued the upward push on price and maintained the year-over-year median sales price from last month at $725,000 at end of August 2021 up 24% from 2020 median of $581,804 just one year ago. And year-to-date average sales prices continued that trend increasing 27% over 2020 resulting in an average sales price of $804,052 for YTD at end of August 2021 vs. average price of $632,997 at the end of August 2020.
Over the first half of 2021 we had seen homes selling more quickly than ever! Average Days on Market has stabilized somewhat was and although Average days on market is up slightly (1 day) from last month it is still quite low at 16.38 days at end of August 2021 versus 28.6 days at end of August 2020, so homes are currently still moving very quickly on the market but this is showing that slight shift in the market activity.
Even with the reopening of the province since the lockdown, Wellington County continues to show a very strong seller’s market at this time which is continuing to push up prices in Wellington County. The average year to date sales prices in Wellington county for each type are:
Freehold Homes: $883,220 (Average sales price at end of AUGUST 2021)
Condominium homes: $564,577 (Average sales price at end of AUGUST 2021)
Vacant land sales: $728,461 (Average sales price at end of AUGUST 2021)
With our economy and consumer behaviour starting to see some changes as our region & province has opened up, we have started to see a bit of a shift in the real estate market. At this time real estate prices in Wellington county are maintaining their rise, but we are starting to see some signs of shifts towards stabilization in the market, across the country and here in the region.
Sit back, relax and be rest assured that your real estate and HOME still proves to be a safe and secure investment.
Keep healthy, stay safe and enjoy the rest of the summer sunshine!