Area Real Estate Sales Improving

Spring has brought with it increased activity in the real estate market throughout the Georgian Triangle. After a lengthy period of unprecedented market growth in virtually every month throughout the year, the general economic slowdown has brought with it market conditions that are more consistent with the seasonal ebb and flow of the past.
MLS® sales activity in April as reported through the Georgian Triangle Real Estate Board were much stronger than in the prior three months of 2009 with sales totaling $43 million compared to monthly sales of $11 million, $19 million and $23 million in January, February and March respectively. Year-to-date sales for the year are still well below the same 4 months of 2008 at $98 million versus $152 million last year which reflects a decrease of 35.5%. Notwithstanding this drop in total dollar volume, sales each month in 2009 have been steadily trending upward as is evidenced via the accompanying graph. (Click on graph to enlarge)
A total of 398 units have sold thus far in 2009 as compared to 580 in the first 4 months of 2008, a decrease of 31.2%. What was encouraging to see in April was renewed activity at the upper in of the market. Residential sales in all price categories above $500,000 became extremely scarce in the latter half of 2008 when signs that an economic slowdown was eminent. A total of 11 MLS® sales above $500,000 were recorded in April as compared to 14 in April 2008. Most notably were two sales over $900,000 whereas there were none of this value in the same month last year.
The number of new listings that have come on the market in 2009 are down 4.8%. The number of expired listings year-to-date have increased substantially over last year (35.2%) as sellers, unable to get the lofty prices they had hoped have elected to take their property off the market pending more favourable market conditions.
The overall 12 month “average” residential MLS® sale price for our area stands at $273,449 which is a 4.1% drop from the 12 month average of $285,054 at this time last year. As I have stressed in the past, changes in “average” residential prices up or down should not be misconstrued as representing price appreciation or depreciation across the board. The mix of properties being sold in the various price ranges has a significant impact on the average price. As such, a more detailed look into the specific price range, neighbourhood or area that you may be considering selling or buying in needs to be made. Case in point, the average price in the Town of Collingwood has actually been increasing in recent months.
For further information into market conditions not contained herein or if you have a specific question you would like answered, please feel free to contact me without obligation rickcrouch@propertycollingwood.com.