Area Real Estate Sales Soften in July

After several consecutive months of robust sales following the slowdown we experienced in 2008, area real estate sales weakened in July versus the same month last year.  Unit sales as reported in the MLS® system of the Georgian Triangle Real Estate Board declined 25% in July compared to July 2009. A total of 162 sales were reported during the month down from the 217 properties sold in July 2009.  Sales revenue declined even further during the month as MLS® sales totaled $42.8 million down from the $62.0 million worth of properties sold in 2009 a decrease of 31%
Year-to-date 2010 sales still remain well above the total for the first seven months of  2009 (up 16%) while sales revenue for the year totals $324.1 million up 28% from the $252.5 million sold during the same period in 2009.  Sales in the upper price ranges continue to remain very strong.  Unit sales between $500,000 to $800,000 total 77 properties, an increase of 64% over 2009.  Similarly, sales over $1 million are up 78% with 16 sales reported above $1 million in 2010 versus 9 during the first seven months of 2009.
  The reasons for July's softer sales are no doubt varied.  Many buyers bought in the first half of the year to avoid potentially higher mortgage rates which were predicted to increase but essentially haven't to the levels forecasted.  The implementation of the harmonized sales tax (HST) on July 1st may also have prompted some purchases in the first half although the HST by-and-large does not affect resale real estate.
July and August can be very unpredictable months relative to overall market activity.  Many potential buyers are in "holiday mode" and do not resume their house hunting seriously until late August or early September.  In the past 10 to 14 days our office has seen a 40% increase in showing activity relative to our office's listings, a clear indication that Buyers are indeed out there viewing properties with the intention to purchase.
The remainder of 2010 should bring with it steady albeit somewhat softer level of sales activity.  Interest rates remain at very low levels and there is a great selection of available properties for would-be Buyers to choose from.  For details more specific to your particular market area and or situation, please feel free to contact me.