March 2016 Real Estate Report for Collingwood, Blue Mountain and Area
It would be very easy to become confused by the March market statistics that just came out for our local Collingwood and area real estate market. Despite the fact that we all know most areas are experiencing very active sales, multiple offers and rising prices, the stats show that sales last month we actually about the same number as in March 2015 and even the same number as last month in February. The number of new listings in March were also on par with last year. Odd yes but, there is an explanation.
Sales have been so strong in recent months that the actual number of properties available for sale, is way down. The demand is up but there are simply no properties available in certain areas or price ranges that match the demand. Secondly, many sales are taking place BEFORE they ever land on the MLS® system and these are unaccounted for in these reported stats.
Year-to-date, the number of new residential listings in our area is down 8.5% while the number of sales is up 13.9%.Looking at single family residential homes the six key areas of our local market (Clearview, Collingwood, Grey Highlands, Meaford, Town of Blue Mountains and Wasaga Beach), the average sale price of a single family residential home climbed 4.4% from a year ago to $406,668. The chart below shows the picture in each individual community and you can see that in places like Collingwood and Wasaga Beach, sellers market conditions are among the strongest we’ve ever seen with a sale to list ratio of 66% year-to-date. The surprise once again is Meaford which continues to lag the region with continued buyer’s market conditions in that area.
As always, the majority of sales in our area are under $500,000 with the bulk of those usually being in the $200,000 to $350,000 price band however, as prices climb, so do the sales in various price bands. Year-to-date, the biggest increase has been seen in sales of properties priced from $300,000 to $400,000. We have not seen much change in the number of sales in the upper price tier so far this year.
In the condo market, there have been about 99 sales so far this year with an average sale price of $265,300 compared to $248,100 and 98 sales last year.
There are a large number of investors in the market place as well looking to balance their portfolios with either residential or recreational properties that generate positive cash flows.
This is not an easy market for buyers who are anxious to purchase a home in the area, especially a home under $350,000 in Collingwood or Wasaga Beach. There is little choose from, competition is fierce and there is little time to think. Buyers are well advised to get pre-qualified for financing before making offers and, ask their real estate salesperson for strategies to assist them in finding properties and in getting their offers accepted.
Sellers in these same areas have an easier time with fewer days on the market and often competing offers that drive up prices, if they are in demand areas and price ranges. While this is a wonderful position to be in, it can also be stressful in having shortened time frames for dealing with offers and, in choosing one offer over another that may or may not have the right terms, conditions and ability to complete the deal. Again, sellers should ensure they have solid advice from a trusted real estate salesperson to guide them through negotiations.
Please note that data is from the MLS system of the Southern Georgian Bay Association of REALTORS.
When you need a trusted real estate advisor in the Collingwood area, just call Marg. It’s YOUR move.