Kilworth & Komoka: 2016 year in review
Happy New Year! Can you believe we’re already several weeks into 2017? Before we move forward with plans for the new year, let’s take a quick look at what happened in Kilworth & Komoka’s (K&K) real estate market in 2016.
If you have watched or read any of my previous market updates, then you know that there are a few key indicators that we look at when we asses the health of the market in our community. Let’s start with price.
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In 2016, K&K had an average sales price of $418,801.00. This is actually a 4% decrease when compared to 2015, which saw an average sales price of $434,606.00. However, it is worth noting that while we saw a small dip, it is still the second highest average sales price in the past 10 years and the overall trend is still moving upwards.
Another market trend we look at is how close K&K homes are selling to asking price. In 2016, we saw homes, on average, sell for just over 100% asking price. While that statistic is promising, it does not mean that every house sold for over asking price. When we take a close look at the numbers, we see that approximately 40% of them did. This should give K&K residents confidence that buyers are willing to pay to live here and their homes are holding their value.
dom (Days On Market):
It is important to consider how long it is taking sellers to sell their properties. On average, it took 43 days to sell a home in K&K in 2016. In comparison to 2015, we see an average increase of 9 days, but nonetheless, 43 DOM is a very healthy and reassuring timeframe.
One area that we have seen nice steady growth in, is the number of homes that sold in K&K. In 2016, we saw an increase of 7%. In this area, slow and steady is the name of the game - it shows consistency and growth.
New Builds vs. Resale Homes:
One of the items that can change from year to year is the split that we see between resale home sales and new build home sales. In 2016, of the 97 homes that sold, 28 of them were brand new homes that were purchased directly from a builder. This means that almost 29% of home sales were to builders. This may seem high, but is appropriate for K&K as several new developments are currently taking place. This may not always be the case, but for 2016 it certainly was a notable piece of the market.
With all of this information, it may be hard to paint clear picture of specific trends that we see happening in our community. Let me shed some light on what I see and what I think will happen moving into 2017.
As I have discussed in previous market updates, much of what we will see happen comes down to supply and demand. In 2016 we saw a fluctuating supply, largely due to builders listing multiple properties simultaneously - which distorted numbers for that month and made it hard to track any real trend.
If we look at current supply, there are 27 homes listed for sale and of them, 22 are new builds. That means there are only 5 resale homes on the market here in K&K currently. If we keep pace with the same demand that we had last year or grow it, this resale inventory will not last long on the market. That means we’re heading into a year of a “sellers market” as far as resale homes are concerned.
advantage to sellers:
Given the low competition and the growing demand as we head into the new year, there is an advantage to home sellers that decide to list right now.
If you are planning a move in 2017 and want more information about what is going on specifically in your neighbourhood, I would love to connect with you. You can always reach me directly by emailing firstname.lastname@example.org or call/text 519.476.7016
From myself and the Komoka Homes team, Happy New Year. Let’s connect in 2017. May it be a great one.