If you’re a homeowner in Huron County or planning to become one, I’m going to be sharing an update on the latest real estate market trends from December 2023. Make sure you stick around to the end of this blog so that you can take advantage of some hidden opportunities whether you’re thinking about buying or selling in 2024.
Alright over all from a high level perspective, in December there were 4.9 months of supply available in Huron County, which believe it or not, keeps things in a balanced market territory. But we definitely feel as if we are in a firm buyers market out there.
What does that mean?
Months of supply tells you how many months it would take for all of the homes currently on the market to sell, given the average sales volume. 4-6 months of inventory indicates a more balanced market, less than 4 months means there’s not a lot of inventory available which can drive prices up. More than 6 months of supply means there’s lots of properties available for buyers to choose which can drive prices down.
How is that number trending vs. last month?
Well it’s down 13% from last month. This does not mean that the housing market is suddenly going up again. It just means that over the past month, in response to the very low home buying demand, the volume of new listings coming on the market has cooled relative to sales. December naturally wont bring a whole lot of new properties to market because of the holiday season so it makes sense to have a few less new properties on the market for the month of December.
Okay, The average price for a home in Huron County was $450,476. This is a huge decrease from November where is was $507,938. I hate to break it to you but the straight facts are that the home prices have been trending down for the last few months.
We always need to keep in mind this metric includes rural properties and smaller priced condos. This average price is down 11% compared to last month and down 27% versus last year.
The single family home category averaged around $469,211 which is down just under $70,000 compared to last month.
In last month’s market update we noticed that in December 2022 the average price increased from November into December but that definitely didn’t happen this year.
List to Sale Price Ratio
Alright, the average list to sale price ratio was 95.8% in December. This means that properties were selling for 95.8% of list price. That’s down 2% compared to last month but up 2% compared to last year.
Last month I mentioned these numbers have remained relatively stable since July 2023, with only minimal fluctuation month over month. It’s been exactly 1 year since the list to sale price ratio was this low. But when I say this low, it’s still in the nineties. Sellers can use these metrics to budget when listing their home and creating expectations in their mind.
Days on Market
Now you might be wondering how long it’s taking properties to sell? On average in December in Huron County it was taking 52 days for a property to sell. That is trending down from last month where it took 56 days on average, and surprisingly faster than last year where it was taking 74 days. That’s a 30% decrease year over year.
There are many properties sitting longer or shorter on the market right now which is situational to the home and to the sellers needs.
Time will tell if this spring we will see a good spring market or if the interest rates and inflation will continue to stress the market to keep things quieter than we are used to.
Ok if you’re thinking about buying real estate in the near future, mortgage rates are ranging between 5.14% to 6.3% with the Guiding Star Mortgage Group. These rates will depend if you are going fixed or variable and whether you’re getting financing through a bank or an alternative lender. Luckily the market isn’t as shell shocked by the rates anymore and active buyers have been adjusting their budgets to continue working through the market. We all know there are a lot of different opinions on this topic of what we may see in the new year. I am not an expert in this field so I will wait to see how things play out and work with the real information I see in my profession to see how I can help buyers and sellers navigate this year.
If you need help with finding a trusted mortgage agent, we have an in-house mortgage team called Guiding Star that is powered by Dominion Lending Centre that can provide a pre-approval within 24 hours of receiving documentation.
Market Trends Insight
So in summary when you look at December’s market statistics, although the sales prices have significantly declined in the last two months I don’t find it overly shocking with so many factors to weigh in like interest rates, inflation, weather, holiday season and the market naturally softening in the winter months.
My hope is that in March we will have more solid indications into what the rest of the year may look like. I think its also important to mention that some sellers are deciding to pause and wait for what they hope will be a much busier 2024 housing market.
For now it remains important for sellers to stay flexible with their negotiations if they are in a hurry to sell and to price properly out of the gate. Remember to factor in the sales price ratio when discussing an initial list price.
Buyers, right now we have many homes on the market to shop with and we hope to have even more selection when the winter season starts to end in March/April. But if you see the one now, it’s a good time to negotiate favourable terms and get you moved and settled in for the summer season this year.
So the bottom line is that whether you’re buying or selling, your situation is unique and a general market update should be taken with a grain of salt. If you want an accurate market analysis for your home or you’re thinking of buying and want to know where hidden opportunities may lie, you can either request a free no-obligation market evaluation or book a call with me to have a no-pressure conversation about your options.
I’ll always just give you the down to earth advice so that you’re informed to make the best decision that’s right for you, based on your personal situation. If that would be helpful, you can click the link HERE and set it up.
Feel free to check out my other blogs and I’ll be back next month with an updated report.