Area Real Estate Sales Up 23% in July

  Despite the somewhat cooler summer weather we have been having of late, it certainly has not dampened the demand for Southern Georgian Bay real estate.

  Sales reported through the MLS® system of theGeorgian Triangle Association of REALTORS® (GTAR) for the month of July reflected a 23% increase with 227 properties sold during the month.  Dollar volume in July of $67.4 million marked a $10.0 million dollar or 17% increase from July of 2012.  We have now had three consecutive months (May through July) where sales activity has been well above the same time last year.

  Year-to-date MLS® unit sales now total 1,248 properties, an increase of 7% over the first seven months of 2012.  Meanwhile, year-to-date MLS® dollar volume stands at $366.0 million, 9% ahead of last year.  More significantly perhaps is that we are firmly in track to exceed $600.0 million in MLS® sales for 2013, a level never before attained.

  Single family MLS® home sales which have been lagging behind sales in 2012 and now 2% ahead of last year.  MLS® condominium sales continue to remain very strong in 2013 with unit sales 15% ahead of last year.  Vacant land sales are also well ahead of 2012 with 91 sales thus far in 2013 versus 78 in 2012, an increase of 17%.

  Following 4 or 5 years when local conditions could technically be deemed a “Buyer’s” market, we are now witnessing a shift wherein the market is in a more “balanced” state favouring neither “Buyers” or “Sellers” to any meaningful amount.  The total number of new MLS® listings year-to-date is down 4% with the number of expired listings also showing a decrease from one year ago.  Approximately 1 in every 3.3 properties listed on the local MLS® system has sold year-to-date, down from a ratio of 1 to 3.8 earlier in the year. 

  None of the above mentioned data includes new home or condo sales made by developers.  When you factor in the added real estate sales activity that takes place outside of the MLS® domain, it is not hard to see that the local real estate market has and continues to make a strong comeback following the downturn we experienced during the recent recession. 

Area Real Estate Sales On Track For a Record Year in 2013

  Following four months of somewhat inconsistent MLS®sales activity during January through April, we have now had two months back-to-back (May & June) where monthly sales have surpassed those of the same months last year.
  MLS® sales as reported by the Georgian Triangle Association of REALTORS®

posted a 16% increase in terms of units sold during June while dollar volume for the month was up 21%.  The first six months of 2013 have effectively been the busiest months on record for sales in our area with $300.3 million worth of MLS® listed properties changing hands.  Should this pace continue, sales in 2013 may well be the highest ever for our area.

  While this trend speaks well of the market in "general" all areas of the market are not  reflecting universally good results.  Single family home sales are running on par with 2012, for the first six months of 2013 there have been 679 single family homes sold through the local MLS® system versus 681 in 2012.  Condominiums sales are up 11% with 172 units sold thus far in 2013 compared to 155 in 2012.  We are also seeing an increase in vacant land sales which to date are up 7% from last year with 74 properties having sold through thr end of June.

  As per the accompanying graphs, out of all the area municipalities, the Blue Mountains is showing the strongest market conditions with unit sales for the year up 10% from one year ago.  Collingwood and Wasaga Beach are holding their own with sales up 2% and 6 % respectively.  Meanwhile Clearview, Grey Highlands and the Municipality of Meaford are all lagging well behind 2012 sales with sales in 2013 that are from 6% to 21% below one year ago.

  Most price ranges are showing consistent if not stronger sales activity in 2013 compared to last year.  The only notable exception is in the $1 million to $1.5 million range where sales for the first six months total just six properties compared to 12 last year, a 50% decrease.  meanwhile sales over $1.5 million are up 50% with four sales this year compared to just two in 2012.

  Given the up and down nature of our market this year it is anyone's guess as to what will transpire in the second half of the year.  I suspect we will continue to see a consistent sales activity throughout the balance of the year heading into the 2013/2014 ski season.

  For further details please see my 2nd Quarter Georgian Traingle Real Estate News.

Home Inspections – Should REALTORS® Be There?

  For the past several years, home inspections have become an integral if not standard procedure with respect to the sale of residential real estate.  In addition, as insurers and lenders have become more selective about what properties they will or will not finance and or insure, they too often send someone out to inspect a property before making any commitment.

  The Real EstateCouncil of Ontario (RECO)  has received several questions of late regarding home inspections and who should be present during the inspection as well as how client instructions should be handled.

  First, there is no section in the Real Estate and Business Broker’s Act 2002 (the Act) that specifically requires that a REALTOR® must be in attendance at the time that a home inspection takes place. However, if a registrant has no written directions as to who will be in attendance at the time of the inspection, problems could arise that could lead to allegations of violations of specific sections of the Act.

  Here’s an example from RECO of just such a potential problem: A REALTOR® representing a seller arranges to let a home inspector into the seller’s home for the purpose of an inspection while the seller is at work. The REALTOR® representative of the seller leaves the home inspector alone in the house for three hours to attend other business. When the seller returns that evening they complain about a number of things such as mud being dragged into the home, damage to the home having occurred, or that objects have been stolen from their home.

The seller complains to RECO that their brokerage/REALTOR® representative has acted unethically because they were not looking out for the best interest of the seller and/or were not conscientious and competent in their service. According to RECO, these allegations could in fact lead to a disciplinary hearing under the Code of Ethics or any of the other remedies available to RECO under the Act.

  In response to these and other similar complaints involving home inspections where alleged conduct in contravention of the Act occurs, RECO offers these guidelines.

  In order to satisfy the Code of Ethics, REALTORS® are obligated to follow the instructions of their clients and to use their common sense in the course of trading. Both the sellers' representative and the buyers' representative should act in accordance with their clients' lawful instructions.

  In order to avoid any potential problems it would be wise for a registrant to obtain written instructions from their respective clients (buyer/seller) on how the clients would like the inspection to be conducted, (e.g. who would be in attendance and when).

  Always have written instructions regarding what will happen at a home inspection or any other service being performed in order to avoid such problems. The representation agreement with a buyer and/or seller would be a suitable document to use for this purpose.

  Keep in mind that some clients may prefer that their REALTOR® be present, although some home inspectors may prefer otherwise.  If you are there during the inspection process it may create some concerns if you become actively involved in inspection activities that are beyond your knowledge, competence or comfort level.

 I myself have always been present at home inspections that are being performed on behalf of a buyer client that I am representing.  Further, I always recommend the buyer attend as well and in most cases they have.  On some occasions I have also attended an inspection at one of my listings where the seller has requested me to attend for security purposes and or to answer any questions about the property that may arise.

  Although as licensed REALTORS® we are not technically required by law to be present at a property for home inspections, what is now being suggested is to obtain written consent from the client, buyer or especially a seller, acknowledging that our presence is not required.  

  If you have your property currently listed for sale and the need for a home and or other visitation by a non-REALTOR®  is required, make sure you cover this with your real estate representation in order to establish a protocol that makes you feel the most comfortable with whom is entering your property.

  If you have any questions or need some specific advice on this or other real estate related topics please feel free to Contact Me.