Across the country, small cities and towns have been experiencing a rush of real estate adrenaline that has long been felt only in large cities. In that, demand is reaching new levels and supply is dwindling, further straining the market and driving prices up in many cities and towns, large and small, from coast to coast. Among these, the Tillsonburg real estate market.
Tillsonburg, Ontario, has seen the housing market surge over the last year and half. Desired by prospective buyers for its proximity to both London and Kitchener-Waterloo, Tillsonburg is a town of approximately 16,000 residents, offering homeowners the dual benefits of ample square footage and outdoor space, within a tight-knit community. In fact, Tillsonburg was named as one of the top 5 most desirable places to purchase real estate in Ontario at the beginning of 2021.
Red Hot Tillsonburg Real Estate Market Showing Signs of Levelling Off
Record month after record month has been the story for Tillsonburg real estate since mid-2020. However, August saw real estate metrics take a dip, pointing to potential easing of the market. In fact, residential unit sales in the small town dipped 4.9% to just 174 transactions in August 2021 compared to the same period in 2020. However, sales still tracked 5.7% above the five-year average and 7.9% above the 10-year average for the month of August. Year-to-date, Tillsonburg registered 1,413 sales for the first eight month of the year, which is an increase of 26.4% compared to the same period in 2020.
As unit sales in August dropped year-over-year, the number of new listings were also on a downward trend. In fact, with an 11.9% decrease compared to August 2020, August 2021 only saw 208 new residential listings were added to the market. This is 1.4% and 2.3% below the five- and 10-year averages for the month of August, respectively.
With new listings not keeping pace with the rate of sales, the number of active residential listings at the end of August 2021 totalled only 194 units – a substantial reduction of 34% compared to the same time last year. This is also the lowest number of active residential listings for the month of August in more than 30 years.
The decrease in active listings coupled with higher unit sales has led to price increases across the board for Tillsonburg real estate. The MLS® Home Price Index (HPI) composite/single-family benchmark price was $541,300 in August 2021; an increase of 41% year-over-year. Meanwhile, the average sale price in August 2021 rose 23.9% compared to the same month last year, to $621,777.
The real estate market in Tillsonburg has remained steady over the last few months. Home sales have slightly dipped but are still above typical levels, and new listings aren’t keeping pace. David Bennett, President of the Tillsonburg District Real Estate Board notes: “August 2021 was a continuation of what we have observed over the last few months. MLS® home sales remained above average while new listings dwindled, reducing overall inventory. Although easing somewhat in the last few months, the current conditions continue to put market balance firmly in favour of sellers. As with many other jurisdictions in Ontario, we have seen an incredible increase in the value of properties in our region over the last 16 months. As long as the twin factors of strong demand and below-average supply persist, we expect that prices will remain elevated. We are monitoring our local market closely for any definitive emerging trends.”
What to Expect in the Tillsonburg Housing Market This Fall
While the Tillsonburg market recorded numbers for August 2021 that are relatively similar to those seen in the last few months, the slight dip in unit sales could point to a levelling of the market and eventually shifting back to what would be considered more “normal” conditions. However, for the market to truly return to pre-pandemic stability, there will need to be an influx of new listings on the market to help alleviate the upward pressure in prices.
The Tillsonburg housing market may cool down in tandem with the falling outdoor temperatures. But as long as COVID-19 is a factor, there is still a lot of uncertainly, in life and real estate.