Ben Sage, Moving Woodstock
April 2016 Woodstock Ontario Residential Real Estate Report
April 2016 Woodstock Residential Real Estate Market at a Glance
The trend being set so far this year has continued through the month of April 2016. Highlights include a monthly average price that got so close to $300,000 it’s scary, and the best seller conditions in the past five years. Once again there are not nearly enough homes to satisfy the number of active buyers searching in the marketplace.
More insanely fast sales, multiple offers, and increasing home values.
In the month of April, 85 homes changed hands in the city of Woodstock, which was up 27% from 67 in 2015. Demand continues this trend, with active listings shrinking to an impossibly low 116 homes for sale in the city of Woodstock at the end of April 2016. This is down 44% from March of 2015.
Poor, Poor buyers…..
This is statistically the worst market to be a buyer for the past five years. In fact, according to Absorption Rate (which is a measurement of supply vs. demand), there has never been a single month in the past 5 years with less supply relative to demand. This is the second month in a row that I have made this exact statement.
Take a look at my absorption rate chart – Yes, this one is a bit messy to look at, but if you examine it, the trend is pretty clear. The green line represents the AVERAGE of the past five years. Red, and Yellow represent 2014 and 2015 respectively. You can see low supply relative to demand for May and June in 2014, and in July in 2015. What’s astonishing about this year is how early the spring supply shortage has hit. It’s been tight for a few months now, and showing no signs of letting up. The incomplete blue line represents 2016 so far. As you can see, the last two months represent a record low supply relative to demand. This is causing huge increases in prices across the woodstock market.
1. April 2016 represents the lowest absorption rate measurement I’ve tracked for the past 5 years, which was also true for March of this year.
2. Normally we don’t see this type of low rate until later in the year, May/June/July
3. In all cases of “new low” records over the past five years, the supply / demand situation improves within 2 months (restores balance, stabilizes pricing)
Questions going forward:
1. Have we reached the bottom of demand relative to supply?
2. Will it bounce back in the next couple of months as expected?
The reality is that so much of our demand is coming down the highway from the GTA. Toronto is on fire, those sellers are cashing out and moving to Mississauga/Brampton. Those sellers are cashing out and moving down the highway to Guelph, Kitchener, Waterloo, Brantford, Cambridge. And guess what? Those homeowners are choosing Woodstock as their new homes.
Prices on the Rise
Prices keep going up. Month over Month, but trends point towards even more appreciation in prices in the short to mid term. The average price in Woodstock reached $297,409 in April 2016, which was up an immense 21.1% from April of last year, and supply and demand continues to be the dominant force in our market at this point.
Look how the March average price in Woodstock has appreciated over the past five years:
I feel like a broken record. I really do. I’ve been saying this since at least October. If you have a house to sell, you are running out of time to capitalize on the hottest market I have seen in my 9 year Real Estate career.
Listing when there is high demand and low supply is a good thing for sellers! NOW IS THE TIME. Have we reached a new low in terms of demand vs. supply? Are we going to see the bounceback in inventory in the next two months?
Many buyers who have been shut out of the market in the last few months are still shopping, but inventory does not seem to be flooding onto the market at this point. If you are thinking of selling, it’s a madhouse out there. It has never been more important that all buyers and sellers hire a REALTOR® who understands the overall market trends at work, and can advise them on how to properly navigate the current marketplace.
I have been successful helping clients buy, sell, or lease residential, commercial, or investment properties in the Woodstock, Ontario area since August of 2007. With technical experience ... Read More...