Housing prices see slight dip last month as sales, listings rise
Average monthly home sales prices slipped by $13,000 in March despite the Windsor-area real estate market showing signs it was stirring from its winter hibernation with listings and sales increasing for the fourth straight month.
The average sales price in March was $563,309 based on 401 sales, which marks an increase of 75 over February. The number of new listings was 828, just under 170 more than the month before.
Sales were 10.29 per cent below March 2023, but sales for the first quarter of 2024 are 2.56 per cent ahead of the same period a year ago.
Windsor-essex County Association of Realtors president Maggie Chen said the stable prices and increased activity reflect the changing nature of buyers in the market.
“The buyers coming into the market are real homebuyers,” Chen said. “We're not seeing as many investors rushing in. There are a lot of first-time buyers, people downsizing or moving up. They're buying a home for their families.
“I don't think the profit margin is there as much for investors. The math doesn't make sense. That's a main reason for the price stability despite the increased activity.”
Chen said she expects to see the pattern of the market fluctuating in price by five per cent or less each month through the rest of the year. Those prices will also more accurately reflect what affordability is in the area based on local incomes.
“I think this is a healthier market,” Chen said. “People are buying houses to be a home, not a product. That's the way it should be.”
Manor Realty general manager Rob Agnew said both buyers and sellers are displaying more realistic behaviour on pricing.
He said many buyers have been shopping for several months and have a good handle on what's on the market and what's fair value.
“There's renewed optimism in the market,” Agnew said. “Sales were up 23 per cent (over February) and listings were up 26 per cent.
“I think we have price stability because both buyers and sellers have become quite educated.”
Agnew said one of the notable aspects of March's numbers was the increasing level of activity in the higher price points for the second straight month.
There were 46 homes sold with a value of $800,000 or greater, including 15 that were more than $1 million.
“That's says consumer confidence is up since the turn of the year,” Agnew said.
Agnew said another positive trend in March's numbers was the strong level of activity in the $450,000 to $700,000 price range. More than half of sales, 207 homes, fell into that bracket.
“Those are your family homebuyers,” Agnew said. “That segment has grown. This market is recovering. I expect to see more of the same for the rest of year. It will be more a steady rise in activity than a spike.”