Bidding wars, bully offers and properties selling for tens of thousands of dollars over asking price were the new “norm” throughout 2017.
The overall market statistics for 2017 across Norfolk County look like this…
To summarize, the number of sales were down (by 6.65%), properties took 37.31% less time to sell and prices increased by 18.93%! In 2016, the average sale price for residential homes across Norfolk County was reported at $290,622. In 2017, that price increased by over $55,000 to $345,636.
Our team at Erie’s Edge took a deep dive into the some more localized markets across the County. Let’s have a look…
Simcoe’s average sale price in 2017 increased by 10.71% to $312,247; up from $282,049 in 2016. In 2016, the average days on market was 77, whereas in 2017 the average house took only 37 days to sell meaning that properties sold 51.95% faster. In 2017, there were 290 sales reported on the local MLS® system, compared to 341 in 2016, a decrease of 14.96%.
The highest average sale price across Norfolk County was reached last year in Port Dover. The average price of $399,392 blew away the 2016 average of $339,078 by 17.79%. Properties also sold faster in Port Dover in 2017, but took more time to sell than Simcoe, Waterford, and Delhi. In 2017, properties sold 25% faster, with an average of 45 days on market (vs. 60 days in 2016). Sales also declined, but only by 6.94% from 173 in 2016 to 161 in 2017.
2017 saw very low inventory in Long Point, which resulted in 54.55% less cottage sales over 2016 (10 vs. 22). Demand remained high and properties were flying off the beach. In 2017, the average days on market for a cottage in Long Point was 26 days vs. 106 days in 2016, meaning properties sold 75.47% faster than the previous year. Low inventory and high demand caused prices to rise by 35.69% over 2016. The average sale price climbed to $437,005 in 2017 from $322,047 the year prior.
Once again the 2017 cottage market proved to be strong in Norfolk County. The number of sales in Turkey Point decreased by 14.29%; from 35 in 2016 to 30 in 2017. Demand remained high which caused prices to increase by 5.85% from an average of $313,754 in 2016 to $332,094 in 2017. Properties also sold 61.11% faster, with an average days on market of 49 vs. 126 in 2016.
Port Rowan, Delhi and Waterford were the three markets in Norfolk County that actually saw an increase in the number of sales in 2017. Port Rowan sales climbed from 41 in 2016 to 48 in 2017, a 17.07% increase. Like all other markets across Norfolk, these three areas showed increased values and decreased days on market. The average price in Port Rowan reached $326,592, a 16.43% increase over the 2016 average of $280,495. Houses sold 21.74% faster in 2017 with an average days on market of 54 vs. 69 the year prior.
In 2017, Waterford realized an increase in average price by 14.65% to $350,636; up over $305,830 in 2016, as well as an increase in the number of sales from 91 to 97 – a 6.59% increase. Once again, properties sold quickly with a drop in the average days on market of 41.38%, from 58 days in 2016 to 34 in 2017.
The Delhi market proved to be one of the strongest Norfolk County markets in 2017. The average sale price increase was the second highest, only beat out by Long Point (a more recreational market). Houses also sold faster by 34%, decreasing from 50 days in 2016 to 33 days in 2017. The average sale price skyrocketed by 24.94% to $291,725 over the 2016 average of $233,494. The number of sales climbed by 25.58% to 108 over 86 the year prior, the largest increase experienced in any community in Norfolk County.
WHAT’S IN STORE FOR 2018?
Real estate was a major topic of conversation throughout 2017 and will continue to dominate the headlines in 2018.
New rules on mortgage lending took effect on January 1 and will result in a major decrease in affordability for responsible homebuyers. We first wrote about the yet another “stress test” being applied to mortgages in October which you can read here.
Stress tests are based on the notion that interest rates are set to rise, and there’s reason to believe that’s likely to come true. After almost a decade, the Bank of Canada increased its benchmark interest rate two times last year.
With a provincial election scheduled to be held on or before June 7 of this year, housing affordability will no doubt be on everyone’s minds and will be a critical platform of the campaign.
If you’re in the market to buy or sell and have questions about the local real estate market, we can be contacted at 519.586.7922 or stop by our office at 1019 Bay Street, Port Rowan. All of our contact information is also available on our website at www.EriesEdge.com.