Average housing prices creep up for second consecutive month

A home for sale on Riverside Drive East in Windsor is shown on Tuesday, July 27, 2021. Photo by Dan Janisse /Windsor Star

While paling in comparison to 2022’s stratospheric numbers, the average monthly sales price of a Windsor-area home crept up for the second straight month in February.

The average price now stands at $532,777 compared to January’s average of $516,117. That remains 25.6 per cent below February 2022’s average of $716,453, which is the second highest monthly figure recorded in the Windsor market.

“I’m not quite ready to say prices have bottomed out, but if we have another month of incremental increases then I think we may look back a couple months and say that’s where the bottom for prices was,” said Windsor Essex County Association of Realtors president Mark Lalovich said. “I’m encouraged by February’s numbers.

“Sales are up 15 per cent from January to February. The average sales price was up three per cent and the median sales price was up three per cent.

“If we can continue to see these marginal increases, we can say the worst is behind us in terms of falling prices.”

Lalovich said the market is beginning to behave in a more recognizable fashion with its incremental increases. With the Bank of Canada expected to leave the interest rate unchanged this week, Lalovich feels that will add more stability to the market as buyers won’t fear prices might plummet after they purchase.

“Buyers are more engaged, coming off the sideline a bit more,” Lalovich said. “March-April signals the start of the busiest part of our year, so I’m optimistic we’ll see continued improvements.”

Windsor Essex County Association of Realtors president, Mike Lalovich, is pictured on Wednesday, Nov. 2, 2022. Photo by Dax Melmer /Windsor Star

February’s sales volume was 52.6 per cent below February 2022’s total of 593, but the sale of 281 homes last month is 37 more than January and 51 better than December.

The majority of the sales activity fell between $420,000 and $699,999. That price band accounted for 53 per cent of February’s total sales.

Just below that price band, another 42 homes fell into the $320,000 to $419,999 range.

“The action is really between the lower end of that range up to about $550,000,” Lalovich said.

“What we’re hearing is $400,000 to $500,000 is really competitive still. We’re seeing multiple offers again.”

Gemus Real Estate Team broker Dan Gemus expects stable prices in 2023 with the market rising about three per cent by year’s end.

Dan Gemus, Owner/Broker of Record, at Dan Gemus Real Estate Team accepted the Professional of the Year Award at the 28th annual Business Excellence Awards held April 11, 2018, at the St. Clair Centre for the Arts. Photo by Dan Janisse /Windsor Star

He notes that despite the decline in prices over the past 10 months, 2023 looks like 2021 where the average price in February was $494,415. Prices fluctuated between that figure and $552,000 for the rest of the year.

“We have to remember we’re comparing numbers to a record, crazy few months right now,” Gemus said. “I think that has made people a little uneasy.

“I think if the interest rate remains unchanged this week, as everyone is expecting, that will bolster confidence in the market. People will believe prices aren’t going to drop drastically after they purchase a home.”

He noted that 13 homes valued at $1 million or more sold last month as another indicator that the market is firming its price lines.

Gemus said the bulk of the action currently involves local buyers.

“Most of the buyers are people who had a home from before COVID, so they have done quite well in building equity,” Gemus said. “They’re cashing in and moving up or downsizing using that equity.

“We’re not seeing a lot of first-time buyers yet. They didn’t chase the market to avoid even higher interest rates as much as we expected.”

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