June 2009 Georgian Triangle Real Estate Market Report
June stats are in and there are some pleasant surprises and some real news. Look at this chart:
For the third straight month in a row, we saw the number of MLS® listings for the month drop below 2008 levels with 11.6% fewer new listings when compared to June 2008. The BIG NEWS however is this… for the first time in 14 months, the number of sales for the month exceeded the previous year. Yes, for the first time since April, 2008, the number of sales last month exceeded June ’08 by a substantial 16%.
June also had the highest number of sales (206) by month since last August. With listings down by 13% over last year and sales up, the tell tale sales-to-listing ratio tells the story of a market quickly returning to balanced market conditions. While the YTD ratio sits at 26.22%, the ratio for the month of June climbed to 39.77%.
Looking strictly at year-to-date (YTD) figures for the first half of this year, the average residential sale price was down about 2.9% compared to the same period as last year however, this is not an indication of actual values. The absence or presence of sales in the high or low ends of the market quickly impacts averages.
As has been the case for many months now, the majority of sales activity has taken place on properties priced below $300,000. Most sales (86) were between $150,000 to $250,000 followed by the $250,000 to $350,000 bracket with 49 sales. There were also 21 sales priced between $350,000 to $500,000. Notably, there were 2 sales over the $1 million dollar mark in June and another 5 sales between $500,000 and $800,000. Most luxury home sales have occurred this year in the last two months suggesting that we are seeing signs of renewed interest or confidence in the upper-tier market.
Looking at individual areas is always interesting. For example, Clearview had a great month with 22 sales reported in June compared to just 7 in the same month a year ago. In Collingwood, sales were on par while they were up in numbers in Grey Highlands, Blue Mountains and Wasaga Beach. Meaford had 4 fewer sales than in June ’08. All of these continue to gain strength each month. The 12-month average RESIDENTIAL sale price sat at $273,941 at month’s end.
Sales of condominiums held their own again with 24-25 sales in each of the last three months returning to the levels we saw in the summer of 2008. Vacant land sales have risen substantially to monthly levels not seen since the records set in the summer of 2007. Over-all, residential properties on average are selling at 95-95% of their asking price.
Buyers are continuing to voice that they feel we’ve reached and perhaps passed the bottom of the market and that they feel now is the time to buy. They see the return to competing offers and rising interest rates and express more confidence that prices have bottomed out. Having said that, the properties that sell are generally only those that are well-priced and well presented. Buyers are looking for value and opportunity plus, they still have a great deal of choice with 2130 properties currently available for sale in the Georgian Triangle area.
Note: All data was obtained from the MLS® statistics provided by the Georgian Triangle Real Estate Board.