Area Home Sales Over $1 Million Increase 86% in 2010

During 2010, area real estate sales continued to rebound from the recessionary days of 2008 posting a 2.7% gain in unit sales for the year as reported through the MLS® system of the Georgian Triangle Real Estate Board.  After a robust start to 2010, sales cooled somewhat in the latter half of the year particularly at the lower end of the market, $250,000 and below. This segment was the one most affected by higher unemployment, rising interest rates and by the impact of HST which came into effect on July 1st.

  Area MLS® sales during 2010 generated $544.8 million in total revenue, an increase of 12.5% over 2009 and over $100 million greater that the value of MLS® sales in 2008. This revenue increase stemmed largely from significantly higher sales at the upper ened of the market.  Residential sales between $500,000 to $800,000 totaled 133 properties, an increased of 40.0% over 2009.  Sales from $800,000 to $1 million were up 33.3%. Meanwhile sales above $1 million increased a whopping 86.7% over the prior year with 28 properties sold compared to 15 in 2009. 
  During 2010 the market returned towards more balanced conditions which favour neither sellers nor buyers however, the overall number of homes for sale on the market remained elevated.  At the end of December, 1,220 properties remained listed on the local MLS® system which represents a 9% increase in the amount of unsold inventory that existed at the end of 2009.  Given the current level of sales activity, there was 12.5 months of housing inventory at the end of 2010.
  At the end of December 2010, the 12 month average residential price stood at $314,937 up from $286,378 at the end of 2009.  This reflects a change of 9.9% year-over-year and should not be misconstrued as a 9.9% increase in home pricing for the year.  This upward shift in the area's average residential price is largely the result of the aforementioned increases in upper end home sales which in turn drove the average sale price higher.
 In my next posting I will summarize market activity throughout the various municipalities in our area during 2010.