Fewer home sales in Huron Perth, but prices stay high
The number of homes sold through the MLS® System of the Huron Perth Association of REALTORS® totaled 250 units in August 2021, a 4.2% decline. However, home sales were 12.9% above the five-year average and 21.6% above the 10-year average for the month of August. On a year-to-date basis, home sales totaled a record 1,662 units over the first eight months of the year. This increased by 16.8% from the same period in 2020.
“Despite coming down from the record August in 2020, this August still managed to post the second best level for this month in history. Considering the more substantial declines in other Southern Ontario markets where sales are trending at average levels this is quite the accomplishment,” said Kathy Dawson, President of the Huron Perth Association of REALTORS®. “New listings are also holding up remarkably well, which is bringing much-needed supply to the market and might be part of the reason why sales are doing so well. Without this influx of new listings, we might otherwise see overall inventories declines even further to new record lows.”
The overall MLS® Home Price Index composite benchmark price was $536,600 in August 2021, a substantial gain of 36.9% compared to August 2020. The Association says the index tracks price trends far more accurately than is possible using average or median price measures. The benchmark price for single-family homes was $539,100, an advance of 37.4% on a year-over-year basis in August. By comparison, the benchmark apartment price was $456,200, an increase of 17.2% from year-ago levels.
The average price of homes sold in August 2021 was $598,424, a gain of 24.3% from August 2020. The more comprehensive year-to-date average price was $580,948, up sharply by 33.6% from the first eight months of 2020. The dollar value of all home sales in August 2021 was $149.6 million, an increase of 19.1% from the same month in 2020. This was also a new record for the month of August.
The number of new listings saw a small gain of 2.9% (seven listings) from August 2020. There were 251 new residential listings in August 2021. This was the largest number of new listings added in the month of August in more than five years. New listings were 5.5% above the five-year average and 3.5% above the 10-year average for the month of August.
Active residential listings numbered 187 units on the market at the end of August, a substantial reduction of 34.4% from the end of August 2020. Active listings haven’t been this low in the month of August in more than three decades. Active listings were 52.6% below the five-year average and 75.5% below the 10-year average for the month of August.
Months of inventory numbered 0.7 at the end of August 2021, down from the 1.1 months recorded at the end of August 2020 and below the long-run average of 3.9 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.