Huron Perth Home sales return to normal levels

Home sales in Huron Perth are down sharply in July, compared to the same month a year ago. The number of homes sold through the MLS® System of the Huron Perth Association of REALTORS® totaled 213 units in July. This was a sharp decrease of 25.3% from July 2020.

Home sales were 2.2% below the five-year average and 0.3% below the 10-year average for the month of July. On a year-to-date basis, home sales totaled a record 1,411 units over the first seven months of the year. This was up by 21.4% from the same period in 2020.

“Home sales came back down to earth from last July’s unprecedented record but actually came in at normal levels for this time of year. Going forward we expect to see more declines but those will all be compared to the astronomical highs of the second half of 2020,” said Kathy Dawson, President of the Huron Perth Association of REALTORS®. “New listings have held up remarkably well. In contrast to many other markets in Southern Ontario we’ve seen an increase in new supply. While this has only just barely lifted overall inventories from rock-bottom levels it’s still a promising sign to see that the market balance is gradually shifting in the direction of a more balanced position.”

The MLS® Home Price Index (HPI composite benchmark price was $543,400 in July 2021, an advance of 40.8% compared to July 2020. The benchmark price for single-family homes was $546,100, up sharply by 41.4% on a year-over-year basis in July. By comparison, the benchmark apartment price was $454,300, a sizable gain of 10.5% from year-ago levels.

The average price of homes sold in July 2021 was $574,546, an increase of 27.3% from July 2020.

The more comprehensive year-to-date average price was $577,724, a jump of 36.1% from the first seven months of 2020.

The dollar value of all home sales in July 2021 was $122.4 million, falling by 4.8% from the same month in 2020.

The number of new listings saw a sharp decrease of 14.6% from July 2020. There were 251 new residential listings in July 2021.

New listings were 4.9% above the five-year average and 5% below the 10-year average for the month of July.

Active residential listings numbered 217 units on the market at the end of July, down sharply by 33% from the end of July 2020. Active listings haven’t been this low in the month of July in more than three decades.

Active listings were 47.8% below the five-year average and 72.5% below the 10-year average for the month of July.

Months of inventory numbered 1 at the end of July 2021, down from the 1.1 months recorded at the end of July 2020 and below the long-run average of 3.8 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.