Local Real Estate Agent Believes High Home Prices Are Here to Stay
The CEO of the Dan Gemus Real Estate Team doesn't expect home prices in Windsor-Essex to ever go back down to where they were.
Dan Gemus is commenting on the hot real estate market after a three-bedroom home on Day Street in Essex sold for $425,000, $225,000 over the asking price.
Gemus told AM800's The Morning Drive that the average home price has been increasing around 20 per cent a year, for the last three or four years.
"Will we ever see them come down or slow down? 100 per cent, I think that's coming soon. We can't go up much higher with where our wages are," he says. "Even if we take a drop of 20 per cent in a year, it's going to drop our gains for that final last year."
Dan Gemus points out that if you look at the trends in the Greater Toronto Area 10 or 15 years ago, that's what's happening here.
"I don't see our numbers dropping like a rock. If anything, we have a new benchmark that I think we're keeping up with, and I think we're catching up to the rest of the country," he adds
As for the factors driving the increase, Gemus notes an increased number of buyers from the Greater Toronto Area and a lack of supply when it comes to available homes in the region.
According to the Windsor-Essex County Association of Realtors, 257 homes in this area sold for over $420,000 in January 2021. That compares to 89 selling above that price point in January 2020.
In January 2017, just five years ago, only 33 homes crossed the $420,000 threshold.
The association also reports that the average sale price in this area was $510,000 in January 2021, up from $329,000 in January 2020.
The average sale price was $219,000 in January 2017.