The average selling price of a home in Windsor/Essex continued to come in dropping $4000 month over month from $257K to $253K this month for a 1.55% retracement as buying demand cools slightly.
Zone 6 and Zone 7 in the city continue to see the strongest volume and focus of activity on the buy side with 90 home units sold in Zone 6 compared to a year ago. Zone 6 is roughly considered to be Forest Glade and Fountain Bleu. Clearly traffic volume at the corner of Lauzon and Tecumseh is stronger with this housing trend. The CIBC branch in front of WalMart is the busiest branch in the city.
Zone 7 is Fontain Bleu, South Walkerville and Devon Woods. Devon Woods has just had a handful of new townhomes listed in its boundary for the first new construction since Raymax homes developed the area about 18 years ago.
Zone 2 and Zone 3 seen the largest increase in listings as more people returned to work and increased their economic position on the coat tails of economic reforms put into place under former mayor, Eddie Francis.
Appraisal volume has increased in Zone 3 specifically between Walker Road and Pillette. This area is roughly known as the Ford City area of the City of Windsor. For the quarter this author only had two properties that came in undervalued. One on Pillette and one on Mercer. In addition, there was one home on Albert that was appraised by this author at the top end or $190,000 as it was gutted to the studs and completely rebuilt.
Zone 5 (Tecumseh) and Zone 9 (Lasalle) seen the largest decline in listings as more people in those areas focused on nesting down. Year to date listings in Tecumseh are just 57 which is down from 83 last year. Lasalle has seen year to date listings drop to 227 from 311 this time last year.
What is exceptionally interesting in the data set is that the Average Sales Price of a home in both Tecumseh and Lasalle has dropped strongly to $165,200 in Tecumseh and $179,451 in Lasalle for the Month of September as few residents are willing to sell and move from those excellent areas.
Clearly the homes that sold in both Lasalle and Tecumseh in the month of September were well below the value of the area.
Employment trends in the region for the year have been robust as our local tool and die, hospital, border, and University employers have been bringing on new staff to deal with strong uptrends in enrollment, residents, and vehicular crossing.
Looking forward, I am projecting further reduction of the average price of a home in the region as the Government continues to rein in the housing market. Windsor has been exceptionally resilient as I had predicted compared to other cities like Regina, St John, and a lesser extent, Halifax. Regina and St John are seeing strong drops in the value of their real-estate as their retirees flee those climates for the sunny skies and temperate climate here in Windsor Essex County.
I would expect that further price consolidation will continue at a slow pace here in Windsor-Essex. In fact, I am projecting that average prices will continue to shrink to a mean average of $248,900 by the end of the December reporting period.
Inventory build is brisk in the region and average days on the market are starting to build due to inventory selection in some areas. Average number of sales above ask price has come in strongly since the pace in February/March but there is still 25% of sales per week that are above asking price with multiple offers in the most popular zones around the reporting district.
At the end of September, 2017, Windsor was in a buyers market with solid price support due to its robust economic trends and this trend may carry over into the first half of 2018.
There is one trend that Windsor may benefit from strongly. Amazon is expected to name a location for a second North American Headquarters and Detroit/Windsor are strong contenders for this new complex. Amazon has an international footing with its current headquarters out west and a Windsor/Detroit complex would be the closest it could come to replicating its existing model. With Dan Gilbert announcing US$2.1B of new construction in Detroit it is feasible that Detroit/Windsor could be in the top 3 potential cities for this new opportunity. If Detroit/Windsor is the pick, it will be transformational to the local real estate market.