Real Estate Prices Continue to Rise in the Collingwood and Area Market
With the 3rd quarter of 2015 behind us now, we can very confidently say that the real estate market in the Collingwood region is booming and is in strong sellers’ market territory in most areas of the region. September itself was very, very strong with just over 250 sales exceeding spring market numbers.
SUPPLY AND DEMAND
The number of properties listed for sale this year is down by 15% compared to this time last year while the number of unit sales is up by more than 16%. That means an ever tightening shortage of “inventory” is available to meet buyer demand and pricing is being squeezed upward. You can see the jump in sales over $350,000 on the charts above and below.
In the traditional six communities we cover (Collingwood, Blue Mountain, Wasaga Beach, Clearview, Grey Highlands and Meaford) all areas were firmly in seller’s market territory last month. Meaford was the only area with fewer sales in September 2015 than last year although sales year-to-date are up moderately. Take a look at the sales-to-listings rations. Collingwood sits at 67% year-to-date which is a number I don’t think I’ve ever seen and it speaks to the shortage of supply versus the demand.
The highest increase in the number of sales by price band were seen in the upper price ranges due to the lack of inventory in lower ranges. People are stretching their budgets to move into higher ranges where availability is greater. The largest increases in year-to-date average residential sale prices are found in Meaford (but there is a low base of numbers for statistical accuracy) followed by The Town of Blue Mountains and Wasaga Beach. There is no arguing that prices are climbing and the trajectory has continued through all quarters of 2015.
There have been 360 condominium sales in the first three quarters of 2015; an increase of 8.4% over the first three quarters of 2014. The average sale prices have climbed by 12% indicating both a shortage of inventory and a move up to larger or newer units. Currently, the average sale prices of condos in the six key areas sits at just under $255,000.
WHAT TO EXPECT
Sales in October typically exceed September so expect another strong month of sales and competitive bidding. Sellers are pulling back now and the shortage of listings is likely to be even more challenging in the month ahead. I would expect that there will be significant pent up demand taking us through the balance of the year and quite likely into the spring market of 2016. Our area does have micro markets so some areas such as Meaford, waterfront properties and older houses in rural areas may not experience the same conditions as homes and condominiums in the more urban centres of the region.
Note: All statistics compiled from the MLS® system of the South Georgian Bay Association of REALTORS®