Reviewing July 2022 in Wellington County
After two years of record-setting activity, it is quite apparent that the real estate market has cooled off in many markets across the country. Sales activity fell to its lowest historic July stats since 2000, as rising mortgage rates and market uncertainty continue its impact on home buyers. Wellington County real estate remains in a balance market due to the consistent rise in inventory over the last few months, and a lower number of overall unit sales. Average and median sale prices still remain higher than last years at this time. Despite this, this market maintains a strong foundation.
With the rising interest rates, the cost of borrowing has overtaken supply as the dominant factor affecting housing markets at the moment. Overall supply levels will likely continue to rise as prices moderate in the near future and as sellers adjust their pricing expectations in the new market environment.
End of July 2022 real estate market overview video:
For Wellington County, the year to date sales volume at end of second quarter was down 6.6% from 2021 numbers, where 2022 sales volume to date is over $2.19B at end of July compared to 2021 volume of $2.346B the same time last year. Concurrently, the YTD unit sales were at 2,324 at end of July, down 19.75% compared to last year’s 2896 units sold by this time last year. Thus, actual unit volume sales is once again down substantially year over year and volume has followed suit.
During the month of July, actual unit sales were also down over 29% with only 242 units sold compared to last July’s 341 units sold. There were also additional new listings in July with 526 new listings last month relative to the 423 new listings of July 2021. Thus, many more listings on the market for buyers, but continued buyer demand dropping off by the unit number of sales decreasing.
The buyer activity that was present still continued to maintain price and the year-over-year median sales price remained consistent at $926,000 at end of July 2022, which is comparable to last month but up 27.7% 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 18% relative to 2021 resulting in an average sales price of $956,665 at end of July 2022 vs. average price of $805,056 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 months. The average year to date sales prices in Wellington county for each type are:
Freehold Homes: $1,082,571 (Average sales price at end of JULY 2022)
Condominium homes: $690,359 (Average sales price at end of JULY 2022)
Vacant land sales: $1,351,385 (Average sales price at end of JULY 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. With the continued uncertainty in the economy, increases in interest rates, and lessening home buyer demand, we will start to see some home sellers adjusting their expectations as we move forward into the latter part of the 3rd Quarter.
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.