What better way to start the new year than to take a look back and see what the month of December brought us.
The numbers are in for residential real estate in Centre Wellington and the data from the final month of 2022 reveals a few interesting tidbits indeed.
The average sale price increased 9.2% from the previous month to $838,200. To put this in perspective—and to show you just how much has changed in a year—this number is also a decrease of 13.5% from the same time a year earlier, in December of 2021.
The average sale price for single-family homes in Centre Wellington was $916,160 (up 1.5% since November). For townhomes and row units, it was $630,000 and for apartment units it was $475,000. Single-family homes were the only ones to see a modest increase month-over-month. When looked at year-over-year, however, the average sale price decreased across all housing types.
The average days on market figure is holding steady at 38, just one less day than it was in November. The sale price to list price ratio in December was 98.1%. A high number like this generally reflects the fact that there is a shortage of homes for sale; high buyer demand can cause strong competition and result in high offer prices for homes.
There were just 20 new listings this month, a 59.2% drop from November. Accordingly, the number of homes sold was also down, at just 13, a substantial 58.1% decrease from the month before. This is not too concerning, however, as a slowdown around the holidays is always expected. Families tend to be busy gathering, celebrating or taking off on vacation—a phenomenon seen every year at this time.
With five months of inventory now available, this indicates we are approaching a balanced market.
Six months of inventory is generally the point at which the market is considered balanced; anything less than six points to a seller’s market (and the higher prices we’ve grown accustomed to seeing), while anything above favours buyers (where prices tend to fall).
Of course, we await the next interest rate announcement from the Bank of Canada, expected January 25th, and the next few months are sure to bring further changes.
For more insight and information, visit the Coldwell Banker Neumann Real Estate Brokerage online at cbn.on.ca or reach them by phone at 519-821-3600.