Windsor-Essex housing market continues to favour sellers in 2020: report
A home with a reduced price is shown in a once vibrant city of Windsor, Ont., in this January 2012 file photo. (Nathan Denette/THE CANADIAN PRESS)
WINDSOR -- A new report suggests the housing market in Windsor-Essex will continue to be geared towards sellers in 2020 with bidding wars becoming more common.
The Windsor-Essex County Realtors Association 2020 Economic Outlook, released on Monday, notes 2019 saw multiple listings receive offers over the asking price, and expects housing activity to continue to improve.
House prices are expected to continue to rise as listings have dropped off.
The report shows new listings have fallen over the second half of 2019. In November 2019, the national number of months of inventory — which measures the balance between supply and demand — hit its lowest level since mid-2007.
According to the report, the estimated average residential sales price is expected to hit $365,747 in 2020, up 9 per cent from the first three quarters of 2019 at $335,548.
While prices climb, the report also highlights the modest drop in mortgage interest rates as a way of making it easier for homebuyers to access financing through Canada’s mortgage stress-test.
Housing starts are projected to stabilize in 2020 and 2021 after declining in 2018 and 2019.
Also noted in the report is the federal government’s First-Time Home Buyer Incentive program and Windsor’s falling economic performance, which is expected to drop to 11 of 16 cities in Canada between 2020 and 2023 by gross domestic product.
Along with data from WECAR and the Canadian Real Estate Association, the report is compiled with the help of the Canada Mortgage and Housing Corporation and the Conference Board of Canada.