Reviewing June 2022 and Q2 in Wellington County
After two years of record-setting activity, it is quite evident that the Canadian real estate market has been cooling in many markets across the country. Nationally, home sales were down for the third month in a row, falling 5.6% month-over-month, and actual monthly activity came in 23.9% below the June record set in 2021. Sales activity continues its downward momentum in the face of rising interest rates and uncertainty in the real estate market. Due to the rising interest rates, the cost of borrowing has overtaken supply as the dominant factor affecting housing markets at the moment, but the supply issue has not gone away.
Locally, the Wellington County real estate market remains in a balanced market. This, of course, is caused by a visible increase in inventory, and a diminishing number of unit sales per month. Average and median sales prices continue to rise when compared year-over-year, maintaining this markets demand. Despite this, this market maintains a strong foundation.
End of Q2 June 2022 real estate market review video:
For Wellington County, the year to date sales volume at end of second quarter was down 2.67% from 2021 numbers, where 2022 sales volume to date is over $2.006B at end of June compared to 2021 volume of $2.061B the same time last year. Concurrently, the YTD unit sales were at 2,082 at end of June, down 18.5% compared to last year’s 2555 units sold by this time last year. Thus, actual unit volume sales is once again down substantially year over year and volume has started to follow suit.
During the month of June, actual unit sales were also down over 35.9% with only 295 units sold compared to last June’s 460 units sold. There were also additional new listings in June with 713 new listings last month relative to the 579 new listings of June 2021. Thus, many more listings on the market for buyers, but buyer demand dropping off somewhat by the unit number of sales decreasing over the past quarter.
The buyer activity that was present still continued the upward push on price and the year-over-year median sales price pressed upward to $926,195 at end of June 2022, which is comparable to last month but up 27.8% 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 23% relative to 2021 resulting in an average sales price of $986,394 at end of June 2022 vs. average price of $800,373 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: $1,099,441 (Average sales price at end of JUNE 2022)
Condominium homes: $700,810 (Average sales price at end of JUNE 2022)
Vacant land sales: $1,351,385 (Average sales price at end of JUNE 2022)
At this time real estate prices in Wellington county are still slightly up over last year, however prices are 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.
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.
For detailed market reports for your area that you can view or download, head over to my website by clicking here!
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