With the change of the calendar from December 2021 to January 2022 we have seen a bit of a repeat of the last year. Although old man winter has made their way into the area, in the housing market, the market in the region continues to be hot. The strong seller’s market continued its trend across the region as we closed the book on the 2021 year. Unit sales were slowed down somewhat in December due to lack of new/ active listings and the holidays, which are traditionally a slow time for real estate. Yet, the high buyer demand continued to push the price of homes upwards despite slower overall sales seasonal sales activity at the end of the year.
Looking specifically at Wellington County, the year to date sales volume at end of 2021 is up 41% over 2020 numbers, where 2021 sales volume to date is over $3.6B at end of 2021 over 2020 volume of $2.56B. The unit sales were a record high of 4,363 at end of year for the county, up 13.5% compared to 2020 numbers of 3,844 units sold.
During the month of December, supply of homes for sale was still at a low and sales volume for the month was down due to the holidays and lack of new listings on the market. Sales volumes for the month were down 2.17% with $169M in sales compared to $173M last December 2020. Concurrently, actual unit sales were down 24% with only 170 units sold compared to 224 units sold last December. However, there was a +0.65% increase in listings last month with 155 new listings in December relative to the 154 new listings of December 2020. Thus, even with unit sales down, the higher prices of 2021 continued with an increase in average and median sales prices as we moved through the end of the year.
The buyer activity that was present continued the upward push on price and the year-over-year median sales price pressed upward to $730,000 at end of December 2021 up 23% from 2020 median of $593,645 just one year ago. And year-to-date average sales prices continued that trend increasing almost 26% over 2020 resulting in an average sales price of $834,986 at end of 2021 vs. average price of $663,981 at the end of December 2020.
Over the course of 2021 we had seen homes selling more quickly than ever! Average Days on Market has continued this trend through to the end of the year and finished 2021 at 16.75 days at versus 28.58 days at end of December 2020, so homes moving very quickly on the market.
Wellington County continues a very strong seller’s market which continues to push up prices in the region. The average year to date sales prices in Wellington county for each type are:
Freehold Homes: $906,342 (Average sales price at end of DECEMBER 2021)
Condominium homes: $556,790 (Average sales price at end of DECEMBER 2021)
Vacant land sales: $861,240 (Average sales price at end of DECEMBER 2021)
At this time real estate prices in Wellington county are maintaining their rise over the past year, but there are some changes to come and a few things to keep an eye on over the coming months are:
- More Modest home price gains – Prospective homebuyers may enjoy slightly favourable conditions. Inventory will likely remain tight, but prices although still expected to rise will likely be more tempered. Especially with the anticipated interest rate increases expected in 2022.
- Still A great market for sellers – While there’s been a slight increase in new listings over the last couple months, 2022 is still expected to be a sellers’ market.
- Increased desire for separation – As people spent more time at home, the desire for a dedicated working space grew. More homeowners appreciate the benefits of closed off, distraction proof floor plans which may lead to a redesigning of some open concept homes.
- Urbanization trend poised to slow down – If remote work continues to become a permanent option, more homeowners, especially those working from home in small spaces, might decide to look outside the city for more square footage and green space.
If you’re considering making a move this year, or would just like to know more about real estate in the region in today’s market, contact me at 519-824-9050 ext. 235.
Keep healthy, stay safe and warm!