The market has slowed strongly compared to this time last year. Average housing prices are still dropping and I now look for the trend to break under $250,000 average selling price.
While we had a market that was parabolic early in the year, this correction is not unwarranted, it is actually welcome so those people who decided to wait out the parabolic state earlier in the year can now step in with confidence.
Looking into the January market, look for more weakness as the government has just announced that even those with more than 20% down will have to go through the same stress test process as those with less than 20%. This will crush the market the rest of the way in the near term as a family that has more than 20% down will now be punished and instead of being able to afford a $621K home, they will only be able to get financing on a $520K home with the new government regime.
We are seeing this new reality in the data feed from the week just past.
During the week there were 210 homes listed forsale which is down from 256 the full week prior. That is an 18% drop in listings as those with homes can not qualify under the new government mandate to move up. There were just 123 sales for the week. While this is still a robust number it is down from 146 the full week prior. That is a 15.7% drop in sales and means that there was just .1294 sales per Realtor for the week. As we head toward the new government enforced reality in the real estate market look for more realtors to leave the business due to its high costs.
Realtors had better start expanding their product shelf if they want to survive in this new world.
Now you know why I am expanding my life insurance and wealth management practice further into Ontario and Michigan!
Of the homes that sold on the week, 72.4% of them sold at or UNDER asking price. This data feed was on track with the full week prior and is no change which is a positive.
Of the homes that sold on the week, 27.6% of them sold OVER asking price for some reason. They may have been mispriced by the listing realtor, they may have been very nice, or they may have been in very exclusive school zones where the cost of entry is higher.
Buying a home over the weekend resulted in paying a higher price as there was more demand during the weekend. In fact 38% of the homes that sold over asking price sold over the weekend. THAT data set is up strongly from just 14.6% the full week prior but makes sense as school is now in session and folks moving here for our lower cost of living need to buy around school schedules.
And the last data set that I follow as a professional Realtor here in Windsor is the price reduction percentage. For the week there were 38 homes reduced in price or 17.5% of the prior weeks listings were reduced. Last weeks number was 15.2% which means that there was a strong increase of 2.3% of homes currently listed that needed to be reduced in price to get any activity on them.
It is now a good time to be a buyer! To find the perfect home and lay down roots. If you are a first time home buyer, we have to get you into a home before January as the rules are changing and you will be crushed if you wait! Dive in, find a good home in an area that you would like to live in and start building equity before the government rule change forces you to only qualify for West Windsor!