Area Real Estate Sales Up 11% in May

 Following the lackluster real estate market of the first quarter, activity has started to come back reflecting a higher level of sales typically associated with the arrival of spring. Periods such as what we experienced through this past winter where demand softened this year due to the harsh winter, typically serve to create a pent-up demand and this time was no exception.

MLS® sales reported by the Southern Georgian Bay Associationof REALTORS® during May reflected an 11% increase in unit sales for the month versus May 2013 while dollar volume for the month was up 14%.  While stronger sales through both April and May have helped to lessen the impact of the weak sales activity we experienced January through March, MLS® unit sales are still trailing behind 2013 particularly for single family homes.

  Through the end of May, year-to-date MLS® unit sales total 785 properties down 5% from the 830 sales reported in 2013. MLS® single family home sales reflect a 9% decrease from last year with 501 sales in 2014 versus 552 last year.  Conversely condominium sales are up 14% with 159 MLS® sales this year compared to 139 for the first 5 months of 2014.  Despite the fact that total MLS® unit sales are down this year, stronger sales at the upper end market has resulted in higher dollar revenue.  Year-to-date dollar volume of $248.3 million is 2% higher than in 2013 when sales totaled $243.3 million.

  With the exception of Grey Highlands which is up 24% and the Municipality of Meaford up 9%, all other area municipalities are experiencing a reduction in single family home sales this year.  The results are as follows: Clearview -29%, Collingwood -21%, Blue Mountains -7% and Wasaga Beach -6%.  Some of this sales shortfall is due to availability with certain housing types in very short supply.  Bungalows and other homes in the $250,000 to $300,000 are very much in demand and supply is limited.  Meanwhile, year-to-date MLS® listings which total 2,870 units reflects a 3% decrease in the number of new listings that came to market in 2013.  Expired MLS® listings are also down, 11% from one year ago.  These two factors have served to reduce the amount of housing inventory on the market leading to more balanced market conditions with a greater emphasis for successfully a property driven by the price.

  With our overall economic conditions remaining in relatively good shape and the continuation of low interest rates, I forecast that we will continue to see some strong sales activity through the balance of 2014.  Whether it is simply to attract a buyer or to satisfy mortgage requirements, competitively pricing a property is of paramount important in securing a sale for your property. 

If you are thinking of selling, contact me for a no obligation evaluation of you property and let me put my Market Value Appraiser skills to work for you.