Friday, October 7, 2016

Area MLS® Real Estate Sales Could Hit $1 Billion in 2016

 MLS® sales in September as reported by the Southern Georgian Bay Association of REALTORS (SGBAR) continued at a record pace bringing us one step closer to realizing $1 billion in MLS® sales volume for 2016.

  MLS® dollar sales in September totalled $94.3 million, an increase of 18% from one year ago when sales reached $80.0 million. A total of 243 properties sold in September through our local MLS® system which was actually a decrease in unit sales of 2% from September of last year when 249 properties sold.  As I have said in prior posts, the only real threat to sales is the lack of properties listed for sale.  New listings during September declined a staggering 27% with 292 new MLS® listing reported in September compared to 399 in September of last year.  Year-to-date, new MLS® listing activity is down 9% while sales are at record levels.  There remains an abundance of buyers with far too few properties listed for sale to satisfy the demand.

Year-to-date MLS® unit sales for the first nine months of 2016 now total 2,188 properties, an increase of 18% over last year.  MLS® dollar volume for the year now stands at $812.2 million, 30% higher than the same time last year.  Total MLS® dollar volume in 2008 totalled $489.2 million and here we are on the threshold of breaking the $1 billion barrier for 2016 a mere 8 years later.

  The growth in area condominium sales are outpacing the sales of single family homes.  Through the end of September condo sales are up 21% from last year with 440 MLS® sales year-to-date.  MLS® single family home sales totalling 1,442 properties reflects a 15% over the 1,255 home sold in the first nine months of 2015.  After two or three slow years, we have seen a very strong resurgence in vacant land sales. Year-to-date there have been 201 vacant lot sales compared to 150 last year, an increase of 34%.  Clearly the shortage of finished homes listed for sale has helped to drive the sale of vacant lots with buyers electing to build in a market where there clearly a shortage of homes to choose from.


 Not all areas of our market are performing equally as well in this robust market. Clearview Township continues to lead all area municipalities in terms of the largest increase in single family home sales year-over-year with 159 sales through the end of September marking a 28%% increase over 2015. Single family home sales in Wasaga Beach are up 23% this year with 546 MLS® sales reported compared to 443 one year ago.  Sales of single family homes in Collingwood are up a more modest 10% year-to-date while sales in the Municipality of Meaford and Grey Highlands are up 14% and 20% respectively.  Lastly single family home sales in the Blue Mountains are down this year with 159 sales reflecting a 2% decrease from one year ago.  New home building activity in the Blue Mountains is very strong which has no doubt played a role in the reduced sales activity of exiting homes in the municipality.  Vacant land sales in the Blue Mountains this year are up 36% with 72 sales in the first

  As we head into the final stretch of the year, it would appear that the significant insufficient supply of properties on the market is going to have an adverse impact on sales activity.  For those looking to sell, the timing right now could never be better to maximize the equity in your property and this is especially true for those that do not need to immediately replace their current property with another one.

  Selling or buying in this hyper active market has its challenges.  For a confidential no obligation  discussion about your real estate goals or needs please feel free to Contact Me.






1 comment:

Jill said...

Great article Rich, your points are so true. If there were more houses on the market we would have had a record year for sure. Excellent read will share it. Have a great 2017!

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Rick relocated to Collingwood from Toronto in 1985 through a transfer with Goodyear Canada. In 1987 Rick was recruited by a major client of Goodyear’s, managing their Canadian business based in Barrie before moving to Chicago in 1992 as Vice President of Sales & Marketing. Upon returning to Canada in 1996, Rick ran an industrial products manufacturing company in Stratford, Ontario. In 1998 Rick returned to Collingwood with his two children. Rick is a licensed real estate Broker with Royal LePAGE Locations North in Collingwood and holds his MVA designation (Market Value Appraiser-Residential). He is an active volunteer in the community serving several years on the Board of Directors with the Collingwood Chamber of Commerce as Treasurer, 6 years on the Board of Directors for the Southern Georgian Bay Association of REALTORS® of which he is the Past President (2008) and currently serves on a committee with the Ontario Real Estate Association. Rick is a diverse executive manager with extensive experience in strategic planning, manufacturing, finance, human resources and quality assurance management.