Why People Move

If you have your property currently listed for sale, and you are frustrated with the lack of progress in securing a Buyer there may be a number of reasons.  One of the key factors affecting our area unlike other markets such as the Greater Toronto Area (GTA) is Buyer motivation.

  Most of you will agree that our lifestyle here in Canada is not much different than our counterparts in the U.S.  I can personally attest to that as I lived in the Chicago area for 4 years and travelled extensively through many of the 50 states.  I just read an article that was titled "More Americans Move for Families and Jobs."  I suspect the same applies here in Canada but not so much in our market.

  The article was based on a recent survey by the U.S. Census Bureau reflected that 48% of Americans make a move for housing related reasons.  This was down from almost 53% in 2004.  The other reasons (more than 50%) for a move were job related approximately 20% and family related 30%. 

  The report reflected than 5% choose to make a move simply to be closer to their work lessening their commute, this was up from 3% in 1993.  I am not surprised by this.  Commuting to work gets more onerous with each passing year, many Buyers are basing their purchasing decisions in the GTA in relation to their work location.  Adding to this is another report I recently read which indicated about 50% of “millennials,” those around 18+ years of age did not even have a driver’s license.  Seemingly their work and personal lives are intertwined in the city so “why do I need a car?” 

  In 1999, approximately 21% of Americans moved because they wanted a better house.  The latest report shows that this has dropped to 15% and I suspect an aging population wishing to down-size may have something to with it.  The same applies here in Canada.

 Buyer motivation in our area is quite different than in the GTA for example.  Moving to be closer to work is hardly a factor and in the absence of any strong economic development initiatives moving here for work is even less of a factor.  With the arrival of low interest rates, we have seen more people making a move to a larger/better home because they want or need one.

 So why are the majority of people buying here?  As a REALTOR® I can state with some authority that a great number of the Buyers we deal with are moving to the area for retirement purposes or to buy some recreational property.  Neither are terribly motivating factors and they are certainly not factors that require a sense of urgency which helps to explain why the number of “days-on-market” for properties in our area are much longer than in a market such as the GTA.  Many Buyers in this area are making a potential purchase or move simply because they want to.  Their move is not work related or even family related where it is tied into the end of a school year for example. 

  Once you eliminate the family and job related reasons for a move, you have effectively reduced the number of potential Buyers for our area which in turns adds to the time it takes to secure a Buyer for your property.

Creating An Outdoor Room

Walking through numerous retailers such as Canadian Tire, Home Depot and others it is not hard to see that with a wide variety of patio furniture and other accessories creating an "outdoor room" is all the rage.

 If you are in the process of trying to sell your home now is a great time of year to stage your patio or deck in a manner as to accentuate the potential outdoor living that buyers could enjoy.;  Little things like this can help to set your house apart from the competition in both the eyes of REALTORS®
as well as prospective buyers.

Here is a good article with 50 Outdoor Room Ideas to help inspire you in creating your own special outdoor living area.  For more ideas you can also visit my Outdoor Living Pinterest page.

Area Real Estate Sales Up 11% in May

 Following the lackluster real estate market of the first quarter, activity has started to come back reflecting a higher level of sales typically associated with the arrival of spring. Periods such as what we experienced through this past winter where demand softened this year due to the harsh winter, typically serve to create a pent-up demand and this time was no exception.

MLS® sales reported by the Southern Georgian Bay Associationof REALTORS® during May reflected an 11% increase in unit sales for the month versus May 2013 while dollar volume for the month was up 14%.  While stronger sales through both April and May have helped to lessen the impact of the weak sales activity we experienced January through March, MLS® unit sales are still trailing behind 2013 particularly for single family homes.

  Through the end of May, year-to-date MLS® unit sales total 785 properties down 5% from the 830 sales reported in 2013. MLS® single family home sales reflect a 9% decrease from last year with 501 sales in 2014 versus 552 last year.  Conversely condominium sales are up 14% with 159 MLS® sales this year compared to 139 for the first 5 months of 2014.  Despite the fact that total MLS® unit sales are down this year, stronger sales at the upper end market has resulted in higher dollar revenue.  Year-to-date dollar volume of $248.3 million is 2% higher than in 2013 when sales totaled $243.3 million.

  With the exception of Grey Highlands which is up 24% and the Municipality of Meaford up 9%, all other area municipalities are experiencing a reduction in single family home sales this year.  The results are as follows: Clearview -29%, Collingwood -21%, Blue Mountains -7% and Wasaga Beach -6%.  Some of this sales shortfall is due to availability with certain housing types in very short supply.  Bungalows and other homes in the $250,000 to $300,000 are very much in demand and supply is limited.  Meanwhile, year-to-date MLS® listings which total 2,870 units reflects a 3% decrease in the number of new listings that came to market in 2013.  Expired MLS® listings are also down, 11% from one year ago.  These two factors have served to reduce the amount of housing inventory on the market leading to more balanced market conditions with a greater emphasis for successfully a property driven by the price.

  With our overall economic conditions remaining in relatively good shape and the continuation of low interest rates, I forecast that we will continue to see some strong sales activity through the balance of 2014.  Whether it is simply to attract a buyer or to satisfy mortgage requirements, competitively pricing a property is of paramount important in securing a sale for your property. 

If you are thinking of selling, contact me for a no obligation evaluation of you property and let me put my Market Value Appraiser skills to work for you.