Oxford County: Woodstock & Ingersoll Results for the First Four Months of 2013

Oxford County:

Sales of individual homes across Oxford County are up 16.5%
or 45 homes ( 317 homes versus 272) after the first 4 months
of 2013.  Prices are continuing to rise as well.  The average
home now sits at $234,782. This represents an increase of 
5.3% on a year to date basis with the average home owner 
making $11,482 improvement in value.  Homeowners are 
consistently getting 97% of asking price and it now takes 81
days to sell the average home. This year 64% of all homes 
listed for sale are selling during the listing period.

Woodstock:

The City of Woodstock represents 51.2% of the reported 
sales for Oxford County.   Sales of individual homes in the
City are also up to a lesser degree by 4.3% or a total of 8 
homes (191 homes versus 183). Prices are also up 4.2% or
$9,358 across the City ( $229,426 versus $220,068) for the 
same four month period.  The average time it takes to sell a
home in Woodstock now sits at an average of 75 days down
from 87 days.  Homeowners are getting 97% of asking prices 
in spite of prices rising.  Inventories continue to be lower than 
the first 4 months of 2012.  There is a 62% chance of getting a
sale during the listing period. This is up nicely from 55% a year 
ago.

Ingersoll:

Ingersoll is enjoying similar growth for the first 4 months.  Sales 
of individual homes here are up 48.6% or 18 units on a base of 
37 homes.  On the other hand prices have remained relatively 
flat decreasing marginally by 1/3 % to $706 ($196,239 average).  
Part of the reason for the drop is an increase in inventory in 
Ingersoll specifically from a total of 174 homes up from 151 for 
the same 4 month period a year earlier.  The inventory is now 
back to the same level as it was a year earlier which should 
result in upward pressure on prices. Home owners were 
getting 96% of asking prices during this period compared to 
98% a year ago.  In 2012 during the first 4 months homeowners 
had a 34% chance of getting their home sold during the listing 
period. This year that number has increased to 49% and will 
continue to rise.
  
Contributing to this low level of sell through was the fact that 
179 homes expired unsold in the first 4 months of 2012. This 
year this number is down to 27 homes.  As long as inventories 
remain low, prices will rise.

Conclusions:

Clearly all markets, especially Ingersoll, remain excellent 
opportunities for First Time Home Buyers to enter the market.   
Mortgage rates combined with Rental Rates continue to make 
this the perfect time to get into the market or to make the move 
up. If prices continue to climb, because demand continues to 
outweigh supply, this remains an excellent time to make that 
"Move Up" move...and to make money on this investment over 
the long term.

Pick up the phone or email us and we'll be pleased to provide
you with a personal market update on what's happening in your 
specific neck of the woods....

Gib Heggtveit's Cell:   519-535-3975

2012 - Oxford (Woodstock, Ingersoll, Norwich) - Year in Review

Oxford County and Key Areas

Serviced by Woodstock, Ingersoll and District Real Estate Board.

Trading Area (Oxford County)

Sales of homes in Oxford County in 2012 declined by 10.3% over the previous year but… because there were fewer homes to choose from, prices still rose. 

So, what happened to home prices across Oxford County?  The average home price rose almost 3% over the 12 month period ending December 31, 2012. This was an average  increase of $6,571 (from $223,157 to $229,728).  To reinforce this balanced market principle, let’s look at the month of December in isolation. The average home price for a residential home in our trading area rose to $260,680 for the month compared to $224,648 in the previous year.  December also saw the number of homes sold in the month drop 16.7% from 42 homes to 35 homes.  With buying power remaining well below rent, it is an excellent time for renters to get into the housing market. 

 We have been stating for some time that the market has been balanced or slightly under inventoried.  The new listings for the year were 1475 (compared to 1624 for 2011) with sales of 843 Homes (single family residences excluding condos) reflecting a 57% sell through.  In other words, if you offered your home for sale in 2012 you had a 57% chance of getting it sold during the listing period.  In 2011, the average sell through of listed homes was 58%.  There were 35 sales of single family homes across Oxford County in December with inventory sitting at 407 homes listed for sale on MLS. Now is an excellent time to buy, with inventories peaking during the 2 slowest months of the year.  Looking at 2012 Sales at 843 units, we were averaging 70 homes sold per month.  With inventory at year end at 407 listed homes, this gives us an average supply of 5.8 months, basically a market in balance (assuming a fast rise in sales in February onward. You can therefore expect that if you are buying or selling that prices will remain firm or rise slightly again.

 

Good Credit, but no down payment?…there are lots of financing options available. We really can help!  Let us introduce you to a trusted mortgage consultant.

 

Woodstock Single Family Homes:

The number of homes sold in the city of Woodstock in 2012, declined 5.2%. Residents sold 515 homes in 2012 compared to 544 for 2011.  Because fewer homes were offered for sale (818 homes in 2012 compared to 962 in 2011) the ability of selling the average home during its listing period, jumped to 63% compared to 57% a year earlier.  It took an average of 83 days to sell a home in 2012 compared to 90 days in 2011.

Prices as a result rose again in Woodstock up 1.54% for the 12 month period ending December 31, 2012.  Translated into Dollars, this represents an increase in value of $3,356 to an average home price of $221,280 up from $217,924. Home owners averaged 97% of their MLS asking price during 2012.

 The market should continue to show marginal growth driven by continued favorable affordability and opportunity to build long term equity for first time buyers and move up investors.

 

Ingersoll Single Family Homes:

The number of homes sold in the town of Ingersoll in 2012, declined 8.2% over the previous year, 156 homes in 2012 compared to 170 for 2011. The Ingersoll market remains in balance with inventories up marginally from 314 homes available year over year.  It should be noted that in 2012 only 55% of all homes listed for sale sold through.  In 2011 this number had set a record at 70%! This is an outstanding level (normal average sell through in South Western Ontario runs between 50% and 60%). Indicators suggest that this rapid growth may balance in the year ahead in this area. The economic fundamentals are solid.  Auto Industry is strong in Ingersoll and the labour pool is now stable.  In 2012 it took only an average of 70 days to sell a home compared to 83 days in 2011.

Prices rose again in Ingersoll up a whopping 8.4% for the 12 month period ending December 31, 2012.  Translated into Dollars, this represents an increase in value of $16,576 for an average home price of $213,743 up from $197,167. Home owners averaged 97% of their MLS asking price. This is up from 96% a year ago. 2011 and 2012 were strong years for Ingersoll, with average values coming closer to Woodstock.  We had commented for some time that this market was undervalued and worth investing in.  This market correction is exactly what we had forecasted.  

We should now see a flattening in sales values to normal increases in this area in 2013. This becomes a good opportunity to liquidate, move up or to buy that first home.  The use of an experienced professional to get the best value out of a transaction now becomes ever more important.

 

Norwich Township Single Family Homes:

The actual number of homes sold in Norwich Township in 2012, declined by 32.2%. Residents sold 40 homes in 2012 compared to 59 for the previous year and 67 homes sold the year before.  Values on the other hand have returned to 2010 levels. The ability of securing a sale  of the average home, during the listing period in 2012, dropped to a 41% chance of sale being completed compared to 47% a year earlier.   Homes that do sell are moving through at a faster clip.  For example, it took an average of 89 days to sell a home in 2012 compared to 110 days in the previous year. This was again due to significantly fewer homes offered for sale  (129 homes in 2012 compared to 174 the year earlier) .

The overall desire by homeowners to get historical pricing has reaped good improvement in value. The average MLS price in Norwich Township rose 8.1% for the 12 month period ending December 31, 2012.  Translated into Dollars, this represents an increase in value of $18,268 to an average home price of $245,120 up from $226,780. The average house price back in 2010 sat at $247,654.  Home owners in this area have been consistently getting 95% of their MLS asking price, an indication that Buyers are negotiating aggressively.  Inventory of homes offered for sale are marginally high.  This would indicate a continuation of the 95% variance to list and a -50% sell through during the listing period with prices holding.  This drives home the importance that the “right” realtor must be recruited to get the “right” result for the home seller. Work with “Professionalism”.

We deal with most Clients’ single largest investment…their own home. It makes no sense to put something this valuable in the hands of just anyone …. instead put this Home in the capable hands of the best service available.  We would be pleased to take you through this process successfully.

Thinking of Selling:

You really want a full time, experienced, and knowledgeable, professional, tech savvy, and results oriented team. working for you. This is not the time to hire a friend, relation, or do it yourself service!  Experience shows the difference we can deliver to you, your family, friends and neighbours.

 

Buying:

When you are purchasing a home you want someone working for you,  or in the case of your family, your friends and neighbours, protecting  all of you. We deal with every concern, making sure  they are addressed in all offers,  and identifying what similar properties sold for to establish true market value, and then managing the process to completion.

Why would anyone call listing Realtors directly about a house that they see on MLS?  Call us to work with you as your professional Buyer Agent! Sometimes people think that the Listing realtor is going to give them the best deal.  The “Real Estate and Business Broker Act” obligates the listing Realtor to get the Homeowner the highest price and the best terms possible, while treating others fairly!  That Realtor cannot tell you why the homeowner is selling or what he/she is willing to accept. Anything told to the Realtor by the Homeowner must be held in the strictest confidence.

How about buying directly from a "For Sale By Owner" (Property Guys, Woodstock Private Sale)? The Owner can’t see what homes like this one actually sold for. How was a selling price established?  Does the Owner understand Seller liability (explained in detail by a Listing Agent)?Without professional advice, how would a Buyer know what to include in his offer to purchase to protect himself or what to pay? 

 

Gib & Mary Heggtveit

Real Estate Broker & Sales Representative
RE/MAX Centre City Realty Inc., Brokerage

Cell:519-535-3975

It is our intention to continue building lifelong relationships one client at a time and remain our client's personal realtor for life. If you know of a friend, co-worker or family member who could use our help, be sure to contact us. Your personal introduction is the greatest compliment we can receive.

Woodstock October Update 2012

Important Statistics That Your Realtor Needs to Share with YOU and know!

What happened to “Residential” Sales in “Woodstock” in 2012?

As of October 31, 2012 the average house price rose 1% to $220,255 over the previous year’s 10 month average of $218,609.

Unit Sales have decreased 4.3% from 2011. Units are 463 compared to 484 for the same time period last year.

The inventory of homes for sale is off 21% compared to 2011. 222 homes for sale compared to 281 last year.  Prices will hold.

The average time it takes to sell a home currently sits at 68 days down from 119 days in October 2011.

The average “Sales to List” ratio for Woodstock specifically currently sits at 61% for the Board jurisdiction.  This also means that 39% of all homes in this area don’t sell, they expire!

It is important to be Listed and ready to sell during the peak period of March through May, 2011. 

Average Woodstock Monthly Sales for your specific area:

Month                  2011           2012          2 Yr Avg.

January                 29               30               29.5

February             38                45               41.5

March                   60                56               58

April                     52                53               52.5

May                     51                41               46

Average days on market in spring averages around 90 days

2012 Midway Sales Report for Oxford County - Woodstock & Ingersoll

Oxford County:
We now have 6 months sales under our belts and there has been no "Bubble"!  Inventories of single family homes offered for sale are down 18.2% currently versus June 2012.  As of July 1, 2012 there were 497 homes being offered for sale versus 607 in 2011. Unit sales for the first 6 months are also down by 9.3%. Fewer homes to choose from. Prices as a result continue to show strength and reasonable appreciation.  Prices are up 2.8% at the end June 2012 when compared to the same 6 month period in 2011.  The average house price across the county now sits at $228,114 versus $221,941 for 2011. Other indicators of a move to a Seller's Market are an improvement in the percentage of asking price received, it has increased from an average of 96% to 97%.  In addition, the average days it takes to sell a typical home has also decreased from 88 days to 78 days.  If the supply of homes remains in balance prices will continue to hold and show modest gains.

Woodstock:
Woodstock accounts for 61.7% of all sales of homes across this Real Estate Board's jurisdiction in Oxford County. The average price of a home in the City of Woodstock now sits at $222,647 for the 6 months ending on June 30, 2012.  This is a 2.1% increase from last year's average price of $218,004.  Inventories of homes offered for sale are 25.3% lower than last year at the same time.  Sell though of active listings is moving up significantly.  The number of homes sold without expiring jumped from 50/50 chance (the normal average) to 60/40 chance in 2012.  At the current sales levels the MLS system is carrying slightly more than 4 month supply (260 homes).  Home sellers are currently getting 98% of asking price. Once again prices are going to remain solid as long as these inventories remain in balance. 

Ingersoll:
The price advantage of buying a home in Ingersoll now sits at 12% variance to a similar home in Woodstock.  Ingersoll has shown steady sales growth over the last few months. Sales are off 3.3% or 4 units on a year to date basis (86 units versus 89 units). June was a fantastic month with sales of 26 homes compared to 14 in June 2011.  Remember, average monthly sales have been under 14 units. Let's look at prices!  The average house price has risen 4.9% to $208,159 up from $198,477.  Inventories are level with 2011.  If you remember our comments in 2011, we felt the Ingersoll was prime for a price increase.  We are still under inventoried and therefore prices should hold.  Home owners are getting 98% of their asking price.  When a home is listed for sale in Ingersoll it takes 59 days on average to sell the home.  However there is only a 49% chance of completing a sale during the typical listing period.  This would indicate that the home must be priced properly, show well and be properly marketed.

Should I Buy Now?
This is not Vancouver, nor is it Toronto.  Our prices have risen slowly, and steadily, and to our recollection never reached double digits in a single year since the market rebounded in the early 2000's.  The US housing market is still lackluster, but now there is at least talk that it is bottoming out...That would indicate that it has a long hard road back to "Normal".   This factor should hold interest rates down.  Projections of interest rate gains over the next couple of years have never been higher than 1%. The Canadian Government once again implemented more controls on mortgages, another indicator that they do not see rated climbing soon..Lastly the best indicator of all is "Can You Buy For Less Than Rent?"  If the answer is still "YES" than it is reasonable that prices will hold and grow... and it it a great time to BUY! Our Mortgage Broker just offered us 2.99% - Five year locked in financing for properties closing June 30 and 3.05% for property closing July 31, 2012. 
We ask..."Why wouldn't you Buy or Move Up now?"

When Do Homes Sell:
The peak of the home selling season is typically June.  It is driven by the fact that closing average about 60 days. This puts new home buyers into their new home in time for "Back to School'.  We notice a second lift in volume as we move to September October. The slowest months of the year are typically December and January, then it starts all over.

2011 FINAL SALES UPDATE FOR INGERSOLL

2011 Year End Sales Activity Ingersoll Market

Unit sales have fallen 8.1% for the 12 month period ending December 31, 2011 when compared to the same period for the previous year.  Unit sales now sit at 170 homes sold versus 185 in 2010. This market has been under inventoried and this may have caused buyers to look elsewhere. (We explain this statistic below) The decline stopped in June and sales were flat for the balance of the year when averaged out. It must be remembered that the decline in the first 6 months was due to huge sales increases in 2010 as Buyers rushed to avoid paying the new HST that was being implemented in July 2010.  HST was not applicable on resale homes.  Only new homes over $400,000 and all services such as lawyer and realtor fees were charging the new HST.

On the other hand prices are holding.  Prices in Ingersoll actually rose nicely up 3.4% ($6,522) for the 12 month period ending December  31, 2011 finishing up at $197,167. 

The number of active listings currently sits at 42 versus 691 a year ago.  Based on year-to-date sales, this translates into 3 months supply, well under 6 months which by definition is a balanced market.  This is an important statistic when selling a home because there are very few comparable properties to choose from. This may change as we move forward, however this would currently a Seller’s Market!

It is therefore surprising to see that Home owners are getting only an average of 96% of asking price.  It is clear that they could be less flexible in their negotiation.  If priced properly, the average time to sell a home in this market is 83 days unchanged from a year ago. The time it takes to sell a home obviously  increases dramatically in the winter.

Homeowners that listed a home for sale in 2011, typically had a 69% chance of a Sale! This figure is up from a year ago when it sat at a 64% chance of selling during the listing period. This market offers a 21% better chance of selling an average home than the rest of Oxford County where the average was only 57%.

Market Update Woodstock 2011 Sales

Single Family Residence Activity

To December 31, 2011:

This report only looks at “Residential” Sales. Condominiums, rental unit, farms, and commercial ventures are not included.

Since January 2011 prices have turned around since July report and have finished up month over month finishing the year up by 3.4 % In April, May & again in July prices were off marginally. However as expected home prices then showed strength through the balance of the year. The average house price in Woodstock has reached $218,102 based on a 12 month year-to-date average up from $210,810 for the previous year.

Unit sales for the city of Woodstock have rebounded nicely due to slow sales in last half of last year following the in introduction of the HST in Ontario.  At the end of June sales were down 10.1% on a year to date basis. Units sold now sit up 1.9% at 543 homes versus 533 for the same period in 2010.  First time home Buyers continue to enter the market drawn by low interest rates. 

The average List to Sell Ratio is only 57%. What does this mean?  It means that only 57% of the homes listed in Woodstock ever sell during the listing period. This number is up versus 2010 when it sat at 53%

The market at year end is slightly over inventoried at 264 active units unsold at year end.  This indicates we had moved marginally into a BUYER’S MARKET (when 6 months supply is exceeded).  This put pressure on prices. The traditional sales levels of January and February will not correct this.  As more properties come to market this will put pressure on Sellers as they give Buyers more choice (principle of “Supply and Demand”).

Sellers are still getting 97% of the listing asking price on closing. The average days on market before a sale is achieved for the city of Woodstock is an average of “90” days.  This is longer this time of year (Example December 2011 was 127 days based on sales volumes). Listings will therefore average 5 months and achieve fair market value.

Based on this market information being properly priced is absolutely critical.  There is no doubt that in the event that inventory starts growing that there will be some pressure on pricing.  The press continues to predict adjustment downward in pricing on a National basis.  We have not experienced the double digit increases experienced in Toronto, Alberta and B.C.  If they are right and it ever does correct our adjustment will be much less. 

If you are considering listing your home for sale, as you can see by the graph above, you will want to be “Buyer Ready” by February 29, 2012!

3rd Quarter Market Update For Woodstock 2011

Average Home Price Change:

This report only looks at “Residential” Sales. Condominiums, rental unit, farms, and commercial ventures are not included.

Since January 2011 prices have turned around since June report and have increased marginally by 1.6 % In June prices were off marginally. They should now continue to hold firm. The average house price in Woodstock has reached $218,365 based on a 9 month year-to-date average.

Number of Homes Sold Trends:

Unit sales have rebounded nicely due to slow sales in last half of last year following the in introduction of the HST in Ontario.  At the end of June sales were down 10.1% on a year to date basis. Units sold now sit up 4.3% at 441 homes versus 423 for the same period in 2010.  First time home Buyers continue to enter the market drawn by low interest rates. 

The average List to Sell Ratio is only 53%. What does this mean?  It means that only 53% of the homes listed in Woodstock ever sell during the listing period.

In June the number of homes being offered for sale was on the increase.  At the close of the month of June we had 384 homes for sale with 285 homes sold since January.  This indicates we had moved into a BUYER’S MARKET (when 6 months supply is exceeded).  This put pressure on prices. Since then demand had been on the increase (year over year) with 54 homes selling for example in September compared to 44 last year.  Inventory is now down to 297 homes. This is great news for Sellers. This represents an average of around 6 months supply. The more limiting the choice the better a homeowner does price wise (principle of “Supply and Demand”).

Sellers are getting 97% of the listing asking price on closing.

Summary:

Based on this market information being properly priced is absolutely critical.  There is no doubt that in the event that inventory starts growing that there will be some pressure on pricing.  The press is projecting a 25% adjustment downward in pricing on a National basis.  We have not experienced the double digit increases experienced in Toronto, Alberta and B.C.  If they are right and it ever does correct our adjustment will be much less. 

This secondary market (Fall Market) is still a good time to market and sell your home.