Consumer confidence in the Windsor-Essex housing market was especially positive through 2015; approximately 20 per cent of homes sold at asking price or above and there was a notable increase in price value. A lack of inventory on the market meant homes received multiple offers, putting the region in a seller’s market. The weather typically has a significant impact on sales in the region; if this winter is snowy and cold, the market will likely become more balanced at the beginning of next year.
The average sale price for a detached home rose 4.6 per cent year-over-year to approximately $201,150. Sales increased considerably; there were 6,185 sales between January and October of 2015, compared to 5,257 during the same period last year. Demand was strongest for bungalow ranch and raised ranch style single-family homes.
Demand was driven by out of town buyers, particularly retirees, attracted to the region’s affordable pricing. Move-up buyers accounted for the biggest proportion of sales; they have been selling their $200,000 homes and upgrading to properties in the $300,000 to $400,000 range.
Future Trends: Infrastructure projects such as the Gordie Howe International Bridge are underway and are expected to instill more confidence in the economy.
An influx of retirees are expected to continue to populate the area due to Windsor-Essex’s low prices and proximity to the U.S. border.
The RE/MAX 2016 average residential sale price expectation for Windsor-Essex is an increase of five per cent.
First-time buyers: Due to historically low interest rates and relatively low prices compared to other areas in the country, first-time buyers in Windsor-Essex were able to purchase larger, higher-end properties than in the past. In some cases, young professional couples bought luxury homes in the $500,000 and above range, helping drive the upper-end market.
Condo market: Windsor does not have a significant condo market; however, a large new development in Tecumseh is currently under construction, and units have been selling quickly. As this is the only building currently in development, condo inventory is expected to remain low.
Luxury homes: Luxury home sales were strong; 25 properties sold for over $1 million between January and October 2015. Low interest rates and high consumer confidence are encouraging move-up buyers to purchase newer, larger homes.
Source: RE/MAX INTEGRA, Ontario-Atlantic 2016 Housing Market Report