Reviewing MAY 2022 in Wellington County
After two years of record-setting activity, there are signs the Canadian real estate market might be cooling. Nationally, home sales were down for the second month in a row, falling 12.6% month-over-month, the largest monthly decline since summer 2020, according to the Canadian Real Estate Association (CREA). Economists attribute the decline in sales to a spike in interest rates, which increased about 1 percentage point in April, reducing affordability for buyers and softening demand among prospective homebuyers, many of whom were already struggling to keep up with runaway sales prices.
The Wellington County real estate market just barely dips into a balanced market with a sales/listing ratio of 60.2%. This is caused by a jump in inventory across all of Wellington County’s sub-markets, and a decrease on average in unit sales. Despite this, this market maintains a strong foundation.
End of May 2022 real estate market review video:
For Wellington County, the year to date sales volume at end of May was up 4.66% over 2021 numbers, where 2022 sales volume to date is over $1.770B at end of May over 2021 volume of $1.691B the same time last year. However, the YTD unit sales were at 1,787 at end of May, down 14.7% compared to last year’s 2095 units sold by this time last year. Thus, although sales volume is up slightly due to higher prices, actual unit volume sales is once again down substantially year over year.
During the month of May, actual unit sales were also down over 25.6% with only 338 units sold compared to last May’s 454 units sold. Concurrently, there were additional new listings in May with 744 new listings last month relative to the 597 new listings of May 2021. Thus, more listings on the market for buyers, but buyer demand dropping off somewhat by the unit number of sales decreasing over the past couple months.
The buyer activity that was present still continued the upward push on price and the year-over-year median sales price pressed upward to $926,389 at end of May 2022, which is down from last month but up 28% from 2021 median of $725,000 just one year ago. And year-to-date average sales prices continued that trend, although again lower than last months’, the average sale price increased over 27% relative to 2021 resulting in an average sales price of $1,020,274 at end of May 2022 vs. average price of $799,542 just one year ago in the region.
Wellington County strong market continues with prices up in the region over last year, however, average & median sales prices are once again down over the prior month. The average year to date sales prices in Wellington county for each type are:
Freehold Homes: $1,119,520 (Average sales price at end of MAY 2022)
Condominium homes: $713,719 (Average sales price at end of MAY 2022)
Vacant land sales: $1,445,500 (Average sales price at end of MAY 2022)
At this time real estate prices in Wellington county are still up over last year, however prices seem to be showing a bit of stabilization and reducing in some segments in the region. Over the past couple months we have seen increases in interest rates, lessening buyer demand, and home sellers not seeing many multiple bid situations in the market.
The upcoming months will showcase more trends as to where the market is going but many of our area markets are moving towards more of a balanced market at this time. Stay tuned next month to see where the trends are headed as we close out the second quarter of 2022.
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.