The Windsor Essex Real Estate Market

By Mark Lalovich

After navigating through the supercharged pace of recent years, it appears that the market is on a path to stabilization.

Although things are not yet back to their pre-2022 levels, indicators suggest steady growth in the coming months as we make our way toward an optimistic future.

October 2022 to November 2022 saw a decrease of 5.79% in the average sales price, and another decrease of 7.36% between November 2022 and December 2022. However, January 2023 saw an increase in listings of 8.93% compared to January 2022.

At the end of January 2023, the WindsorEssex County Association of REALTORS’ MLS System had 3.1 months of inventory (as compared to 0.8 in January 2022).

As buyers and sellers return to the market, they are finding that even though shortterm gains have normalized, increasing their homeownership still provides a strong long-term investment opportunity.

Realizing that buying power is not diminished by this new reality, many are taking advantage of the opportunity presented in today’s housing climate.

Home sellers in 2023 may face unique challenges as the market trends towards becoming a buyer’s haven.

Expect longer wait times and lower offers than what we’ve seen historically, which could see a resurgence in common offer conditions such as financing, home-to-sell, and home inspection.

Future homeowners should have an easier time navigating the market as the popularity of bidding wars is easing.

However, the increased interest rate and stress test policies provide some additional challenges to entering the market.

Variable mortgage rates have skyrocketed, putting a financial strain on those already feeling the pinch of an uncertain economy.

Since 2020, there has been an increased interest for hybrid and remote-work.

This push to work from home has also changed the housing needs for many homeowners and potential homeowners, who now require an office or more space to accommodate their “work from home” lifestyle.

What this all boils down to is that 2023 will be a year of transition for REALTORS, homebuyers and sellers, and the industry itself.

This year will also see additional changes coming to the Trust in Real Estate Services Act (TRESA) as governed by the Real Estate Council of Ontario (RECO).

Any changes to the act — which governs how real estate agents can trade in Ontario — ultimately effects consumers as well. Mark Lalovich is President of the WindsorEssex County Association of REALTORS and a a dedicated Broker with RE/MAX Preferred Realty Ltd. Learn more about the association on: WindsorRealEstate.com.