February 2014 Real Estate Market Recap For Collingwood, Blue Mountain and Area
You know what they say about statistics? Lies, lies and damn lies. Last month is a perfect case in point.
On the surface, sales for Southern Georgian Bay area based on the global reports we receive, suggest that sales of all types, over-all, were down by 14.2% year-to-date compared to this time last year. That sounds a bit gloomy but a closer look reveals something else is underway in the six key areas of our region being Collingwood, Clearview, Wasaga Beach, Blue Mountain, Meaford and Grey Highlands.
Looking specifically at those areas, most of the decline in sales numbers was in Collingwood with only 25 sales year-to-date compared to 45 last year. Despite that, the average sale price of properties sold is up. What’s going on? The answer lies in the supply of homes available for purchase. So far, the number of homes listed for sale this year is down 27% from this time last year meaning that the “inventory” of homes for buyers to choose from is getting tighter with each passing month. There’s another interesting point to note. Last year, overall in the region, there were 11% more sales in February compared to January but this year, the spread was a jump of 47% more sales in February over January. That is a rather significant finding.
Agents in the GTA and Barrie tell me that there is “nothing” for sale in their areas leading to multiple offers and rising prices. Is that trend headed our way too? It’s a bit of a guessing game for both buyers and sellers. For sellers, now may be a very good time to put their properties on the market while choice is so limited. For buyers, do they wait to see what comes up in a few months or do they act now? My advice is act when you see the right home for you.
This month, there were two sales in the area with values exceeding 1.5 million. The largest increase in activity was in properties priced from $400,000 to $500,000. Anecdotally, we have a high number of enquiries, online searches and showings taking place which suggests to me that there is pent-up buyer demand waiting for a thaw in the endless winter conditions. The spring market will be strong this year with the possibility of a return to competing offers depending on the supply of properties coming on the market. Here is a snapshot, by the six key areas, area of residential sales so far in 2014: