Unit sales for the first five months of 2010 as reported through the MLS® system of the Georgian Triangle Real Estate Board are up 40% from the same period last year. Sales revenue has increased more dramatically with year-to-date sales totaling $219.4 million up 57% from the $139.8 million worth of properties sold in the first five months of 2009. This increase in sales revenue is being driven by significantly increased sales in the upper price ranges with unit sales in the $500,000 to $800,000 price range up 88% (49 versus 26) 2010 compared to 2009. Further, year-to-date sales above $1 million total 9 to the end of May versus 5 in the same period last year. During the month of March, two MLS® residential sales were recorded over $2 million whereas in the history of the local MLS® system there had only been two single family homes sold over $2 million ever.
Many people I meet and talk with comment on the seemingly large number of properties currently listed for sale. Year-to-date, a total of 2,768 new MLS® listings have come onto the market, up 9% from the 2,540 new MLS® listings recorded in the first five months of 2009. It is a fact, Buyers do have lots of choices and they are buying as is evidenced by the 40% increase in unit sales to the end of May. When choices are limited, my experience is that Buyers tend to stand pat waiting for a greater selection of properties to become available before they commit to buy. The number of expired listings May year-to-date have decreased from last year and they now stand at 1,166 properties, down 8% from the same period last year. Many Sellers, unrealistic in their asking prices have decided to remove their properties from the market hoping for a change in fortune at some future point in time.
Breaking the year-to-date unit sales activity down into the various local markets, results in order of the largest year-to-date gains is as follows: Grey Highlands up 95%, Municipality of Meaford up 69%, Clearview Township up 52%, the Blue Mountains up 46%, Collingwood up 28% and lastly Wasaga Beach has increased 16%. As you can see, sales results vary wildly from one municipality to another, please contact me for a no obligation detailed analysis of your particular property.
The Canadian Real Estate Association (CREA) has lowered their 2010 forecast for MLS® home sales nationwide largely the result of weaker home sales in the first five months of the year in British Columbia. BC and Ontario weight heavily in CREA’s annual forecasts and even minor slippage in either of these provinces can significantly impact the overall market numbers. Changes in mortgage regulations are expected to have a marginal affect overall and perhaps even less so here locally. Many Buyer clients I regularly deal with are merely writing a cheque hence mortgage rates are a moot point. Sales across Ontario are predicted to increase by 10% in 2010, my belief is that we will see a significantly higher sales increase here in the Georgian Triangle.
Pricing across our area as well as in Canada overall remains relatively stable. The national average home price now stands at $325,400, locally were are just slightly below that at $312,529 to the end of May up 12% from one year ago. As I have stated in prior postings, the average residential price cannot be used to measure the pricing appreciation or depreciation. Increased or decreased sales activity at different price points can have a significant impact on the overall average price as we have seen here locally, given the aforementioned sales increases above $500,000. Again, for a detailed analysis of pricing for your property please feel free to contact me.
Overall, the future looks like we will be seeing more balanced market conditions for which everyone will benefit. Canada’s economy remains strong and with a history of solid mortgage lending and prudent borrowing by Canadian consumers it would appear that we will avoid the massive realignment of the housing market being experienced in the U.S.
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