After more than a year of the real estate market being driven by low mortgage rates, high demand, and economic unpredictability due to the persistence of the COVID-19 pandemic, markets across Canada are still levelling up when it comes to sales and prices. The rhetoric has remained consistent since last summer: when will the market slow down and prices drop? Truth be told, based on the current conditions, it appears as though cities across Canada, both big and small, will continue to see a rise in prices as 2021 moves forward. Here, RE/MAX explores the Woodstock-Ingersoll housing market.
The story has been much the same the last few months with many people leaving big cities in favour of smaller communities with more green space and lower priced homes. The Woodstock-Ingersoll housing market has reaped the benefits of this drastic swing in consumer behaviour. Due to the proximity to both London and Kitchener-Waterloo, the rural community has become a hotspot for those seeking out more space for their home office and a bigger yard for kids and pets to roam.
Woodstock-Ingersoll Housing in High Demand
Nestled between London and Kitchener-Waterloo, Woodstock-Ingersoll real estate has become a hot commodity among buyers looking for a home at a slightly lower price. In April 2021, the MLS System of the Woodstock-Ingersoll & District Real Estate Board tallied total homes sold at 190 units. This upswing is more than double that of April 2020. After a fairly slow spring in 2020, it is no wonder the market is performing better in comparison.
However, to draw a more accurate picture of this phenomenal market activity, it is useful to compare current figures to the five- and 10-year averages. When doing so, the number of homes sold in April 2021 is an impressive 23.2% above the five-year average and 27.8% above the ten-year average – showing that this past month has been stellar, by all comparisons!
Thus far in the year, activity has been surging forward at a record pace, coming up just shy of surpassing the current April record: “Activity came in just three sales shy of tying the April record set in 2017. The outsized gain this April is as much a story about the market hitting bottom last year as it is about the current unprecedented strength in demand,” said Alison Porter, President of the Woodstock-Ingersoll & District Real Estate Board. “We’re finally beginning to see a healthy dose of new supply coming onto the market, which has reversed our foray deeper into seller’s market territory. Make no mistake though, with just a little more than 100 listings available on the market at the end of April and benchmark prices skyrocketing by 50% compared to last year, we are still experiencing some of the tightest market conditions on record.”
Pushing the area further into a sellers’ market is the lack of new inventory when compared to the number of sales. While April 2021 saw 150.5% more new inventory than April 2020, due to the pandemic temporarily slowing the market, this past month was just above the long-term average for the month. With 258 new residential listings being added to the market this past month, the listings are only 17.5% above the five-year average and 14.5% above the 10-year average.
Comparatively speaking, while the number of new listings is a notable increase over what is typical, this are not enough to offset the demand, which has further pushed the Woodstock-Ingersoll housing market into sellers’ territory. In fact, the number of active residential listings hit a three-decade low last month with only 124 units on the market at the end of April.
A seller’s market typically leads to higher housing prices; this is precisely what is unfolding in the Woodstock-Ingersoll housing market. The MLS Home Price Index revealed that the benchmark price increased substantially by 50.7% from April 2020 to April 2021. Furthermore, the benchmark price for a single-family home was $611,100 – an uptick of 52.1% compared to 12 months ago. Townhouses/row units also saw an increase in price with the average unit priced at $351,600.
The increase in average home prices in the area led to greater dollar volume for home sales. April 2021 home sales totalled $120.6 million, which has not only more than doubled from last April, but also set a new record for the month.
What’s On the Horizon for Woodstock-Ingersoll Real Estate?
As the spring shifts into the balmy months of summer, it is expected that real estate prices in the Woodstock-Ingersoll area will continue to creep upwards until a peak is reached, which may be expected towards the end of 2021. Buyers and sellers should not expect the market to level out before 2022.