Georgian Triangle Real Estate Market Recap for June 2011
With the first half of 2011 now behind us, here is a look at the real estate market in the Georgian Triangle which encompasses several communities including keys areas such Collingwood, Blue Mountain, Wasaga Beach, Meaford, Clearview and Grey Highlands.
In the month of June, there were 196 sales including 173 residential sales (single family homes, condominiums, manufactured homes), 11 farms, 10 parcels of vacant land and 2 commercial sales. The majority of residential sales activity was concentrated in the $150,000 to $250,000 price ranges.
Statistics generally mean very little when looked in isolation from other comparative data. This month, I thought it may be helpful to give some context to our data by looking back over the last five years. Note that 2007 was the peak year that broke all previous records and, 2009 data most strongly reflected the 08/09 recession.
- There is a strong supply of listing inventory
- Sales have been relatively stable but not robust. While sales are down from 2010, last year included sales created by pent-up demand from the ’09 “recession.”
- Upper tier sales (anything over 500,000 is generally in the top 10% of the local market place) continue to be strong following the trend that began last year. This suggests continued interest in our local market from high net-worth individuals who are benefitting from recovering stock market portfolios, substantial equity gains and, are in many cases approaching retirement.
Taking a closer look, below is a chart isolating residential sales only in the six key areas of the Georgian Triangle Market.
- Generally speaking, it is a buyer’s market in most areas of the Georgian Triangle with the exception being the Town of Collingwood where more balanced market conditions currently exist.
- The 12 month average residential sale price is up in all of the key areas and most notably in Collingwood and Blue Mountain. This figure represents an average sale price – not a median therefore, the numbers are higher due to the increase in upper tier sales in those two markets.
- Over-all, the average price is up about 10% in the last five years
- Over one-third of all sales in the Collingwood and Blue Mountain areas were condominiums
I’m certainly hearing lots of REALTORS® express some concern about the market being a little slow. Many properties are sitting on the market longer and we are seeing lots of price reductions coming through. Less than 1 in 3 properties listed for sale sells during the listing period yet, some properties are experiencing multiple offers and quick sales.
Sellers need to be sharp with their pencils as pricing is the single most important factor in getting a home sold. Buyers also have high expectations and lots of choice so having homes in tip-top condition and in good showing form, is increasingly important.
Buyers have the luxury right now of ample choice and low interest rates. Prices are not dropping but rates will inevitably climb so buyers are well advised to get into the market but with attention to value and affordability.