2008 Residential Sales Off to a Strong Start!

Statistics just released by the Canadian Real Estate Association (CREA) indicate that residential home sales across the country dropped on average 6.3% in January. Saskatchewan and Newfoundland were the only two provinces that did not record a decrease from the same month in the prior year.
Closer to home, sales results throughout the Georgian Triangle in both January and February were the opposite of those noted above. Total unit sales for the month of January were up 17.9% over January 2007 while unit sales in February posted a 4.2% gain. Year-to-date unit sales are subsequently up 13.8%. This winter’s weather with an over abundance of snowfall has created less than ideal conditions for viewing property yet this, nor concerns about the Canadian or U.S. economies appear not to have deterred buyers for Georgian Triangle real estate. I have always been a keen follower of the statistics pertaining to our local real estate market. In addition I pay close attention to the demographic make-up of potential property buyers that we as REALTORS® deal with on a daily basis. As a result I maintain a strong belief that our area is somewhat insulated from the economic and other factors that will affect real estate activity either to the south of us in the GTA or elsewhere across the country and the aforementioned numbers would bear this out. This area has and will continue to see a strong migration of people from the GTA and other parts of southern Ontario. Notwithstanding the exodus of higher paying industrial jobs in the area, our real estate market continues to be positively impacted by those persons looking to move here for recreational and or retirement purposes and this trend is only in its infancy.
The number of new listings that came onto the market across Canada during January totaled almost 75,000 units reflecting a 10.7% gain over December. It is worth noting that this is the largest month-over-month increase in new listings in almost 7 years. This sharp increase in new MLS® listings coupled with the proliferation of new home developments underway in most markets only serves to reinforce the fact that buyers have a multitude of choices out there to satisfy their home buying needs. Locally the number of new listings that have come onto the market through the end of February are equal to the first two months of last year. It is necessary to once again stress the importance of correctly pricing your property reflective of its true market value. With so many choices out there at buyer’s disposal both new and resale, the list price of any property must be consistent with others of similar location, features and condition etc.
Although we are only two months into the year, the strength in our local real estate market continues and notwithstanding a significant deterioration in the economy there is no reason to believe that this trend will change any time soon.