Huron-Perth housing market stays hot in May, but realtor association president envisions some relief

The president of the local realtors' association envisions some relief on the horizon, but Kathy Dawson isn't sure where the Huron-Perth housing market will settle.

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The president of the local realtors’ association envisions some relief on the horizon, but Kathy Dawson isn’t sure where the Huron-Perth housing market will settle.

“I don’t have the crystal ball, (but prices) just seem to be going up,” she said. “I see a softening happening in the near future, but I don’t know when. Prices will still increase but not at the rate they are now.”

Even as the odd home languished without an offer, Dawson said, May was another record-setting month as the average price of homes sold was $616,215, an increase of 39.4 per cent from May 2020. Home sales skyrocketed 72.7 per cent from a year ago to 247 units, which was also a record for the month.

“New listings have only returned to average levels – not nearly enough to offset the red-hot pace of demand,” Dawson said. “As a result, available inventory continues trending at record lows, and fierce competition among buyers is driving prices to new record highs.”

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The number of homes sold in 2021 is up 55.1 per cent from a year ago to 968 units. While new listings have been tricking in for several months, 297 homes were put on the market in May, a jump of 59.7 per cent from last year.

They haven’t lasted long, however, as evidenced by the 188 active listings to end the month, a substantial drop of 46.9 per cent from May 2020 and the lowest for the month in more than three decades.

Months of inventory numbered 0.8 at the end of May 2021, down from the 2.5 months recorded at the end of May 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.

“(More new listings are) good for buyers, but I feel so bad for buyers,” Dawson said. “Even to find a place to rent, it’s so difficult for people.

“People have really started to cherish their homes a lot. If you’re moving, you have to have a place to go to if you’re selling, and then you’re a buyer.”

cosmith@postmedia.com

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