Despite stronger real estate sales activity throughout the area in the first quarter of 2012 overall, sales of higher priced properties in the region seem to have taken a sabbatical.
Last year at this time several $1 million plus sales had been registered through the MLS®
system of the Georgina Triangle Association of REALTORS® (GTAR) this despite the fact that record snowfall last year had everything buried from the buyer's view.
As noted in the accompanying graph, we are seeing significant sales gains in all price segments up to and including the $599,000 price point. I suspect many of these sales are move-up buyers purchasing larger homes than what they currently own while others are secondary properties being bought for recreational use. Either way, these buyers are no doubt taking advantage of the low mortgage rates we continue to enjoy.
Above the $600,000 price point sales remain very soft. In particular, sales in the $700K to $799K range are down 57% with 7 sales in the 1st Quarter of 2011 and only 3 this year. Sales between $900K and $1 million total just 1 sale this year compared to 5 in 2011. Lastly, up to the end of March there have been no sales over $1.5 million whereas last year there were 3 MLS® sales reported in this price range plus I myself sold a $2.75 million waterfront property that did not go through MLS®. For the most part, buyers in the upper price ranges are not affected by mortgage rates as these transactions are largely cash. Seemingly, their cash is being retained at this point reflected in the weak demand we have seen for pricier properties in the 1st Quarter of 2012. Perhaps the affluent know something we don't?
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