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.