To say the Chatham-Kent real estate market is a seller’s market would be an understatement.
There is just too little inventory in terms of number of homes for sale these days, according to Steve Carroll, president of the Chatham-Kent Association of Realtors.
“If you’re a seller, it’s probably good. If you are a buyer, it’s probably bad,” he said. “The best thing is to have a good balance of buyers and sellers.”
Active residential listings in the municipality at the end of March numbered just 194 units. Carroll said that’s down 61 per cent from two years ago and marks the lowest level on record.
Currently, when a home goes on the market, if it’s in a particular price range, it can sell in days; sometimes hours, and sometimes over asking price.
The demand has caused some bidding wars or just plain high bids.
“We have had some homes sell for over asking, some cases well over asking,” he said. “It could be for a variety of reasons; they like the area, or the home could have the floor plan they want.”
And a good deal of the money is coming from beyond outside the municipality.
“What’s driving the Chatham-Kent market right now is about a third of our sales are from outside C-K. A lot of the buyers are coming from higher-cost areas,” Carroll said. “They’re prepared to pay more money. They’re either coming to retire or to work out of their homes.”
That makes for higher sales prices, but also contributes to the limited inventory. Local residents, unless they are first-time homebuyers, normally list their homes as well, increasing inventory. Out-of-market buyers don’t bring that to the table.
The demand and limited supply has certainly driven up the price of the average home in Chatham-Kent. Carroll said between 2008 and 2016, the average price of a home here went up nearly $26,000. But from 2016 to 2017, just one year, the price rose by $18,000.
“It’s great for the seller, but you have to know what you are doing and where you are going,” he said.
Given today’s volatile real estate market, Carroll offers advice to buyers.
“The thing we say to people who are looking to sell their home is that they should have a plan for what they are going to do afterwards,” he said. “To sell your home to downsize, for example, for a one-storey home, there are very few of them.
“People aren’t listing until they have a home to buy.”
Some, such as the owners of Maple City Homes in Chatham, have recognized the need for building homes and putting all the amenities on one floor. Carroll said they are doing this in a larger scale than what’s normally seen locally.
“The people at Maple City Homes are building an entire street. That’s unusual. But it seems to be working as they’ve sold more than half of them already,” he said.
The quick sales and rising prices make it a challenge for realtors to accurately price a home for sale as well. Carroll said a realtor typically shows a seller comparably priced homes to give them an idea of how to price their home.
“But you can’t go back beyond six months. Otherwise, you are out of touch,” he said.
And given the low inventory, the six-month comparative is limited.
Carroll said while prices have plateaued in larger centres such as Toronto, from where a good portion of the out-of-town buyers are coming, the housing prices are still considerable.
“There are still people who want to cash in and come to a lower-cost area. That’s good for us,” he said.
Given the limited inventory and options for existing homeowners looking for a change, there are other options. Carroll said the home renovation market is in high gear locally.
“With older homes, in lieu of doing something, there are some serious renovations being done,” he said. “That’s good for our economy too. It helps the home renovation businesses, the furniture stores. Those are pluses too.”
Carroll, a real estate veteran, said today’s market is something entirely new to him.
“What’s going on right now, I have not seen in the 25 years I have been in it. Others have never seen anything like it either,” he said. “The big thing is the average price – that shows you what has happened, and the active inventory shows you we need more homes for sale.”
