October Sales up 84% Over 2008

Further to my last post, area real estate sales during October slightly exceeded my earlier forecast totalling $52.4 million versus $28.5 million in October 2008, an increase of 84%. These results are based on sales processed through the MLS® system of the Georgian Triangle Real Estate Board and do not include new home sales in the area.

A total of 195 individual sales were recorded during the month compared to just 114 a year earlier as we entered into the early stages of the global recession. Listing activity for the month saw 27% fewer properties listed for sale as compared to October last year. Year-to-date, the pace of new listings coming onto the market has slowed considerably up just 1% which is significantly lower than the double digit increases we previously experienced. Some sellers, frustrated with a lack of interest in their properties often stemming from having them over-priced are taking them off the market and this is continuing to be reflected in the increase we see in expired listings which are up 11% year-to-date. The slower pace of listing activity is resulting in less inventory which in turn has a stabilizing affect on prices.

Year-to-date sales to the end of October are now 1% ahead of last year's results both in terms of revenue and units sold. Sales for the year now total $410 million and are just $28 million short of the $438 million worth of property sold for all of 2008. I fully anticipate that sales through the remaining two months of 2009 will remain very strong. We will certainly surpass the weak sales activity that we experienced in the dark days of November and December last year. That being said, full year sales for 2009 may very well approach or exceed $500 million.

In my next post I will review sales activity in specific areas throughout our region. In the meantime please see my 3rd quarter Real Estate Newsletter for other statistics pertaining to market activity throughout the Georgian Triangle.