Low in­ven­tory drives up house prices in C-K

Av­er­age home sold for $230,883 in Oc­to­ber

The Chatham Daily News - - NEWS - eshreve@post­media.com @Chatham­news ELL­WOOD SHREVE

Home sales in Chatham-Kent are down from the same time last year, but the mar­ket is nowhere near cool­ing off as a low in­ven­tory homes com­bined with a high de­mand con­tin­ues to drive up prices.

Res­i­den­tial sales ac­tiv­ity for Oc­to­ber recorded through the MLS Sys­tem of the ChathamKent As­so­ci­a­tion of Real­tors was 110 units, down 12.7 per cent from Oc­to­ber 2017. How­ever, it was third high­est num­ber of homes ever sold for the month.

The av­er­age home sold for $230,883 last month, a jump of nearly 25 per cent from Oc­to­ber 2017.

“We’ve got peo­ple fight­ing over fewer homes, and that’s what’s af­fect­ing the mar­ket right now,” said Steve Car­roll, CKAR pres­i­dent.

Although Oc­to­ber saw a record­high av­er­age price av­er­age, Car­roll cau­tions that “one month does not make a year.”

He said the com­pre­hen­sive yearto-date av­er­age price of $211,936 for the first 10 months of this year is the more im­por­tant num­ber.

“It’s just re­flects some­what more of a level in­crease, still a good in­crease, but not that huge jump that you can get from month to month,” Car­roll said.

He said the av­er­age sell­ing price could come in lower in De­cem­ber be­cause it is tra­di­tion­ally a slower month for home sales due to peo­ple be­ing busy with the Christ­mas sea­son.

Car­roll said the month fig­ures some­times need to be taken with a grain of salt.

How­ever, the com­pre­hen­sive year-to-date price is up 16.3 per cent from the first 10 months of 2017, which Car­roll said is “still very good for Chatham.”

On a year-to-date ba­sis, home sales to­talled 1,119 units over the first 10 months of this year, which is down 4.4 per cent from the same time in 2017.

There were 167 new res­i­den­tial list­ings last month, up five per cent – eight list­ings – on a year-overyear ba­sis. Ac­tive res­i­den­tial list­ings num­bered 247 units at the end of Oc­to­ber, which was a de­crease of 11.2 per cent from same pe­riod last year and marked the low­est level for an Oc­to­ber on record, ac­cord­ing CKAR.

The months of in­ven­tory num­bered 2.2 at the end of Oc­to­ber, un­changed from the end of Oc­to­ber 2017 and a record low for this time of year. The num­ber of months of in­ven­tory rep­re­sents the num­ber of months it would take to sell cur­rent in­ven­to­ries at the cur­rent rate of sales ac­tiv­ity.

While the in­flux of peo­ple com­ing to Chatham-Kent from larger ur­ban ar­eas is still im­pact­ing the lo­cal mar­ket, Car­roll doesn’t be­lieve it is a strong as it has been in the past, when they rep­re­sented more than 30 per cent of home sales.

Although it is a sell­ers’ mar­ket, he said many real es­tate agents are cau­tion­ing peo­ple to be aware there is not a lot of in­ven­tory if they plan to sell and need to look for an­other home to buy lo­cally.

“You may have a more dif­fi­cult time find­ing the type of home that you’re look­ing for,” Car­roll said.

Car­roll

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