Georgian Triangle Month End Real Estate Market Report for October 2009
By now, everyone knows the real estate market has performed very well in the second half on 2009. We also know that starting in the fall of 2008, sales fell to very low levels. So this month, instead of comparing data to 2008, I’m going back and comparing to 2007 which was a record making year for real estate sales.
• October unit sales in the Georgian Triangle were up slightly over September and down just 2.5% compared to October, 2007.
• The vast majority of residential sales were in the $150,000 to $250,000 range
• The monthly dollar volume was up a crazy 84% compared to October ’08 (I couldn’t resist checking that) and roughly on par with October 2007.
• There were 22% fewer new listings in October than in the previous month and, slightly less than even in October 2007. While a decrease since September might be expected as a seasonal norm, that did not occur in the last two years. I think it may be a sign that some sellers are opting to wait to sell waiting for what they now feel is a promise of improving resale values.
• There are presently 2044 active listings on the Georgian Triangle MLS® system
• The 12 month average sale price in the six key areas (Collingwood, Clearview, Meaford, Blue Mountain, Grey Highlands and Wasaga Beach) of the Georgian Triangle is very interesting to analyze.
As an aggregate, the average is down by about 2.5% overall compared to our record year of 2007. Looking more closely though, the average sale price is actually up in the urban centres and down in the rural areas:
At the end of October/09, the YTD sales-to-listing ratio average in the six key areas sits at 35% which is still in buyers market territory. If you are a buyer looking for a property, you might wonder how this can be. The answer lies not in the YTD figures but rather, more recent trend. A ratio below 40% indicates buyers market conditions, 40-50% balanced conditions and over 50% is a sellers market. Looking at the sales to listing ratio for the month of October alone, the ratio averaged 51% in the residential market. Collingwood was a 70% with just 37 new residential listings for the month and 26 sales. In Meaford, the ratio was 60%. Only Clearview (32%) and Blue Mountain (39%) fell below 40% in October.
With continued good news in the media, buyer confidence is quite strong.
The winter months typically show a substantial decline in the number of monthly sales from November through March. With the new HST looming for the second half of 2010, we may have a very strong spring market. Buyers are well advised to get in over the next six months while competition from other buyers will not be as strong. Interest rates are great and the new HST is not in force.
With over 2000 properties for sale in the area, it is still very important for sellers to ensure that their homes are well-priced and well presented as Buyers are looking for value and opportunity.
All MLS® data and/or statistics obtained from the Georgian Triangle Real Estate Board which generally reflects resale values and statistics. Many of the larger new home developments are not listed in our system.