Home prices surging in hot local real estate market

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A surge in real estates prices that extended down the Highway 401 corridor created a 35-per cent jump in the average price of a home in the Windsor area this January compared to January 2020.

The average local sales price for the month was $510,716 compared to $379,813 just 12 months earlier and $206,383 higher than in January 2019.

“The underlying facet of this is really the fundamental of supply,” said Windsor-Essex County Association of Realtors president Damon Winney.

“In January 2020 there were more new listings than this January. We’ve all heard the stories of 10 to 20 bidders for a property.

“With fewer new listings, we’re moving through our inventory of homes quickly. We only have 319 active listings on the board right now.,” said Winney, who is also co-owner of Jump Realty.

Local homes are taking only eight or nine days on average to sell, he said.

The London/St. Thomas Association of Realtors reported the average price rose 40.5 per cent in the region, to sit at $607,431. Chatham-Kent’s average price rose 42.4 per cent to push the average home to $350,452 for January.

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Homes were selling for 11.7 per cent over asking price in Windsor and 10 per cent over in London.

The rental market for apartments also remains tight with a 3.2-per cent vacancy rate compared to 3.6 per cent a year ago.

The average local rent for a two-bedroom apartment has crept up from $949 in 2019 to $1,058 currently. The national average is $1,330.

It’s a similar housing story in London and Chatham where homes are moving as quickly and there is less than a month’s supply of homes on the market based on the current rate of sales.

Windsor’s February figures, which haven’t been released yet, won’t maintain the same torrid pace as January, Winney said.

“They aren’t as eye-popping as 35 per cent, but they’re still strong at 24 per cent,” Winney said. “That’s more in line with the provincial average.”

The average home sale price for January in Canada increased by 22.8 per cent to $621,525.

Monthly prices increased 21 per cent in Ontario, the largest increase of any province, with the average home costing $796,884.

The highest average price remains in British Columbia at $843,830 with New Brunswick being the most affordable province to buy a home at $205,074.

Winney said “2021 started off just like 2020 ended, with a number of key housing market indicators continuing to set records,” Canadian Realtors Association chair Costa Poulopoulos said of the national scene.

“The two big challenges facing housing markets this year are the same ones we were facing last year — COVID and a lack of supply. With luck, some potential sellers who balked at wading into the market last year will feel more comfortable listing this year,” he said.

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The inventory of new listings in Canada is at a record low.

CREA’s forecast released last week for the Windsor market remains robust in terms of prices and in economic and population growth.

Winney said COVID has made buying a home challenging, but supply has also become restricted as some homeowners have opted to renovate their homes and stay put.

At the same time, there’s also continued interest from outside buyers, particularly from large urban areas like pricier Toronto.

A stable workforce, good climate, border access and the ability to cash in their expensive Greater Toronto Area homes and buy cheaper in the Windsor region are all driving the rising prices in the local housing market.

“I also believe there’s a density concern when we look at people moving from the GTA to here,” Winney said. “People are seeking space.

“They can get a four-to-five bedroom home with space for a home office, larger yard, better lifestyle and a better cost of living.”

Bungalows were the most popular choice for buyers in January followed by two-storey dwellings.

dwaddell@postmedia.com

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