What happened in the Woodstock market in February 2019?
Strong Sellers Market conditions continued! That's what!
The Number of homes sold continued to be sluggish, largely due to low inventory. I know there are plenty of buyers who are competing against eachother to pick up properties, with one home receiving 13 offers and selling almost 10% over asking price. So the strong sellers market conditions continued in Woodstock last month.
The Number of homes sold was down 4% from Feb last year, to 46.
The amount of available inventory was up a massive 33.8% to 99 homes for sale but this isn't anywhere near enough to satisfy the demand that exists in the market. This is still historically a VERY low level of inventory.
The absorption rate is just a hair over 2 months, meaning if no new properties are listed for sale, at current demand, we would run out of houses to sell in just over 2 months (2.15). This is the key indicator that determines that it is definitely still a sellers market.
The Average sale price climbed 25.5% over February last year to hit $381,695.
The heat is especially evident on "starter" homes, under $350,000. GET THIS.... in February we had 20 homes sell under $350k, and at the end of February there were only 20 Actively for sale!! A 100% turnover rate!
Interestingly, looking at the price range between $350 - $400k, only 15% of homes sold in February, with only 3 sales, and 20 available for sale at the end of the month. Strange, because homes priced between 400-600k sold at a rate of 46%.
No correction in site yet. The market is a busy place, especially for homes listed under $350,000. Though, this month showed a very odd, surprisingly cool result between $350k-$400k, with only 15% of homes turned over in that price range. 100% turnover BELOW 350k, and 46% turnover between $400-$600k. A STRANGE anomaly!
Predicting the way forward in Real Estate is always difficult, but for the next couple of months it looks like strong sellers conditions will prevail. Weak performance numbers for overall growth in Canada for Q4 last year will no doubt tempt policy makers to HOLD interest rates for the time being, which will continue to propel higher sales prices and deepen the sellers market.
For information about how the market is affecting YOUR value, visit www.woodstockhomes.com and request a FREE desktop assessment!
As always, if you are wondering how this affects your market value, or if you have questions about the Real Estate market in general, I'm always here to help. Give me a call or shoot me a text at 519-532-1295.
Ben Sage, Broker
RE/MAX a-b Realty Ltd., Brokerage