57% of Ontarians Optimistic About Real Estate

The Ontario Real Estate Association (OREA)  has partnered with market research firm Ipsos Reid to conduct a semi-annual province-wide research study that reflects how residents in Ontario view the current the residential real estate market. 

 For several years, various self proclaimed experts have touted  throughout the media that Canada's real estate market was over-heated, that the bubble was about to burst and Canadian homeowners should prepare themselves to see 15% to 20% or more of their home equity erased.  Such has yet to happen yet with a seemingly constant barrage of negative news about the Canadian real estate market you'd think the mood of consumers would be somber.

  The accompanying infographic (click on to enlarge) is the first release of the new OREA, Ispos Reid study.  Overall, Ontarians appear to feel optimistic about both the market outlook and home ownership.  Study results reflect that 57% feel this way with 34% believing the Ontario market will be even stronger next year.

In central Ontario where we are, 54% feel favourable towards the current market while 40% believe that conditions will be even better next year.  How this translates into the southern Georgina Bay region remains to be seen.  Many buyers in our market do not currently reside here.  Their purchasing motivation is often drive more by their desire to purchase a recreational property or on for retirement purposes.  I am sure that those living locally and employed in the retail or service sector would be far less optimistic that about a real estate purchase that someone from the Greater Toronto Area looking to invest in property in the area.

  This brings up two important issues relative to the future of Collingwood and the surrounding area especially in view of the upcoming municipal election this fall.  The first is economic development/job creation while the second is the question of affordable housing.   I will speak to these two issues in future posts.

MLS® Area Real Estate Sales Up 41% in June

 Following a sluggish market January through the end of March, area real estate sales rebounded very strongly in the second quarter ending with a blockbuster month in June, where MLS® dollar volume reached the highest level ever.

  MLS® unit sales in June were 30% higher than June of 2013 with 248 sales reported compared to 191 in June 2014.  MLS® dollar volume in June was $78.1 million, an increase of 41% over the $55.3 million worth of properties sold in June 2013 and the highest month on record for our area. 

 

  MLS® unit sales during the 2nd quarter of 680 properties represented an increase of 11% over the number of properties sold in 2^nd quarter 2013.  Meanwhile, 2^nd quarter MLS® dollar volume of $213.8 million reflected a 20% increase over the first six months of 2013.  Based on the strong sales performance during the 2^nd quarter, we have erased the 6% year-to-date shortfall in sales revenue that existed at the end of March.  Year-to-date sales of $326.9 million, represents a 9% increase from the first six months of 2013 while year-to-date MLS® unit sales for individual properties is up increase of just 1% from one year ago.  The primary weakness in unit sales activity has been in the single family home segment of the market.  With the exception of Grey Highlands up 17% and the Municipality of Meaford which is up 28%, all other area municipalities are showing a reduction in single family home sales year-over-year.  Condominium sales overall have been very strong in 2014 with 196 MLS® condo re-sales reported year-to-date compared to 175 one year ago, an increase of 6%.

 

  During the first half of the year we have seen robust sales activity in the $500,000 to $1 million price range.  Sales between $500,000 and $750,000 are up 26% while sales in the $750,000 to $1 million price range are up 20% over last year.  At the lower end of the pricing scale, sales in the $200,000 to $350,000 price range are reflecting a 10% gain over last year with quality listings in the $300,000 to $350,000 range selling quickly.

  There continues to be an ongoing reduction in available inventory with the number of new listings year-to-date down 2%.  The number of expired listings has dropped 10% from one year ago as sellers either reduce their prices to induce a sale or they are simply taking their properties off the market having failed to attract a buyer.

 My own personal forecast is that we will continue to see strong sales activity through the balance of 2014.  As is often the case, the slowdown in sales activity that we experienced in the first three months of the year which was seemingly weather related, has served to create a pent up demand which explains the very strong sales activity that we experienced in the 2^nd quarter.