Windsor Essex Market Watch October 2014
The Third quarter of 2014 saw year to date residential sales fairly flat/steady with a slight increase of 0.56% compared to 2013. Third quarter residential listings continue to be low with a decline year to date of 3.65% compared 2013. The low supply of homes and steady demand continues to place upwards pressure on home prices. The average price for the third quarter year to date in 2014 was $191,969 compared to $182,964 an increase of 4.9%. While house prices are increasing, demand for homes has remained fairly steady. Some of the key factors effecting housing demand are employment, population growth, and the age of the population.
The City of Windsor is currently benefiting from the current strong auto sector, which is helping housing demand remain stable in the area. However, the overall loss in auto sector jobs over the years (do to globalization) has significantly reduced the number of higher paying jobs in the area. The City of Windsor unemployment in September was 8.7%, this is the 2nd highest in Canada. High unemployment has also made jobs a main focus in the current municipal election. Age of the Population is also effecting housing demand and the type of housing needed. The senior population (over 65) in Windsor increased 13.1% from 2006 – 2011, despite the population declining 1.3%. As older people, are not usually part of the workforce, they will also not show up in unemployment stats. See the CMHC 2014, 3rd quarter Housing Now Report.
The Windsor Essex Development Commission has been working on diversifying the Windsor Essex economy. The efforts to diversify, including tourism/recreation, transportation, agri-business and manufacturing. Growth industries include health and life sciences and renewable energy technologies. It is hoped by diversification, employment will become more stable and less reliant on the cyclical nature of the auto sector.
Location and age of neighbourhoods is also a factor in the market. Areas 1, 2 and 3 representing the downtown and west end of the City are primarily older homes with an average home price in the $95,000 range. The concentration of low property values and higher unemployment, has started to raise concern over the levels of poverty in these areas. A better indication of trends in each area can be found by looking at the ten year averages. Please visit the Buckingham Annual Market Report for Trends by Area.