Hot Windsor-Essex Real Estate Market Has Sellers Celebrating, Buyers Competing
The Windsor-Essex real estate market in Windsor Essex has been swept up into a housing bubble, which is when housing prices are driven higher by pent-up demand and speculation.
“It typically starts with an increase in demand and with limited supply,” explains Chuck Roy, Sales Representative at Manor Windsor Realty Ltd. — Brokerage. “It happens when there are more buyers in the market than listings. The limited supply drives up prices.”
Roy says that the increase in the Windsor-Essex real estate market started last summer, but kicked into high gear in mid-winter. Wondering when this housing bubble may burst? Roy and many other local real estate professionals agree that the trend will last for a number of years to come, according to market projections.
Norm Langlois, President of the Windsor-Essex County Association of Realtors (WindsorRealEstate.com) believes this is a very exciting and upbeat market that is a result of the current vibrant local economy, (low) interest rates and new jobs in the region, along with initiatives such as the “Windsor Essex Active Retirement Community Initiative,” which is attracting new buyers to the area. (Note: visit RetireHere.ca for further details and also see pages 24 & 25 of this issue of Biz X).
He suggests that what’s needed are more listings to keep up with the influx of buyers.
“We have a high demand of buyers and not enough inventory,” Langlois reports.
Comparing last year’s numbers, sales year-to-date (up to and including July) were up a whopping 14.86 percent, according to Langlois. He says the year-to-date average residential sale price is $225,818 which is also a significant increase of 13.84 percent over last year’s figures. This translates to a homeowner equity gain of $21,178 from last year on an average priced home. So, not only have there been a lot more properties sold, they’re selling for more money!
Langlois says the most popular style of home each month in 2016, has consistently been the bungalow/ranch. He adds the current market is affecting houses of all price ranges in the region and all areas throughout Windsor Essex.
“It’s an exciting market for everyone, including investors,” Langlois comments.
While it’s an exciting time, as the saying goes, knowledge is power. So whether you’re a buyer or a seller, read on to discover advice from some local real estate professionals on what’s going on with today’s market and how you can make it best suit your needs.
Feature photos, clockwise from top right.
- Chuck Roy has become accustomed to slapping sold signs on his listings rather quickly, and experts predict this trend will continue for a number of years to come. Photo courtesy of Frank Michael Photography.
- Frank Binder has been a licenced Realtor since 1975 and currently heads 135 Sales Reps in Windsor Essex. Photo by Rebecca Wright.
- Glen Muir sold properties for 16 years at several agencies before opening his own agency in 1992. During this time he has never seen a market like we have today! Photo by Rebecca Wright.
- Norm Langlois is photographed outside the offices for the Windsor-Essex County Association of Realtors in central Windsor. Photo by Rebecca Wright.
Too Hot To Handle? Brokers Break It Down
To understand more about the present hot sellers’ market, and what it means to buyers and sellers today, Biz X spoke with Glen Muir, Broker of Record at RE/MAX Preferred Realty Ltd., Brokerage and Frank Binder, Broker of Record at Royal LePage Binder Real Estate. Both provide insight and a professional perspective on the current situation affecting Windsor-Essex real estate.
“In the 38 years I have not seen a market like we have today,” states Muir (GlenMuir.ca). “I have been through a sellers’ market before, but not like this.”
Binder concurs and recalls that he has only experienced this type of market for a six month period back in the 1970s, and never as sustained as this.
“The general economy is better and people apparently are confident of their future ability to pay mortgages and own property,” says Binder (RoyalLePageBinder.com).
Muir describes how our region has not seen a vital economy, like we’re currently experiencing, for years. Therefore, while home values have been slow to rise, that has quickly changed in recent months.
If auto talks do not go well, that can possibly suppress the situation, Muir speculates. And if this winter has a heavy snowfall, it will slow it down for a period of time, he adds.
But, while the sellers’ market is still hot, buyers have to do their homework so they can make an educated decision when the right property turns up for them.