How's The Market

  As a REALTOR® the most commonly asked question I get in the grocery store, on the street and elsewhere is “how’s the market?” That is a difficult question to answer with a simple broad brush statement given the fact that even locally, our market is made up of so many different segments all of which play an integral role in the overall scheme of things. In my next several posts I will endeavour to provide an update with what is happening throughout our area.
 
  First a general overview. Through the first 9 months of 2012, unit MLS® sales across the region as reported by the Georgian Triangle Association of REALTORS® (GTAR) were up 8% with 1,520 sales through the 3rd quarter this year compared to 1,410 in 2011. MLS® dollar revenue through the 3rd quarter totals $443.1 million versus $417.8 million last year, an increase of 6%. The dollar revenue increase is lagging behind units sold due to the fact that we have and continue to see a softening of sales at the upper end of the market. Example: To date, there have been 3 sales over $1.5 million reported through our MLS® system, last year there were 6.

  As illustrated in the accompanying graphs, MLS® sales through the first 5 months of the year outpaced the level of sales in 2011 both in terms of units and dollars sold. This would lead one to believe that we have turned the corner, the latest recession is behind us and the world is once again a wonderful place. Given the lingering uncertainties in the global economy, and a profusion of somewhat negative media reports about Canadian real estate in general, property demand in recent months has become somewhat erratic and these are not merely seasonal swings. Sales in units dropped 15% in June. July and August sales unit MLS® sales increased 8% and 17% respectively. In September, sales were down 10% compared to September 2011. Anyone one in business will tell you that one month or one quarter doesn’t make or break your year. The yellow “trendline” I have overlayed on the attached graphs reflects that 2012 sales are on the increase overall but I feel it is safe to say there is still a fair amount on uncertainty in our market given the monthly ups and downs.

  In my next posting I will examine sales by area and by price. For anyone contemplating a real estate transaction especially in an area such as ours, it has become increasingly important to obtain detailed information about your specific area, property type and or price range. We have several "micro-markets" in the area some of which are performing well, while others are not. Both Buyers and Sellers need to know the relative state-of-market for their specific circumstances in order to make informed decisions and providing that is one of our key roles as REALTORS®.