Upper End Home Sales Lagging in 2012

  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?

Real Estate Demand Strongest in Grey Highlands & Collingwood During 1st Quarter 2012

As outlined in my prior posting, area real estate sales for the 1st Quarter of 2012 are up 16% overall  from the same period last year.  Looking at the various municipalities that make up our area there is a mixed bag of sales results year-to-date which are as follows.
The Municipality of Grey Highlands and the Town of Collingwood showed the strongest demand for residential homes in the first Quarter of 2012 with MLS® sales activity up 61% and 45% respectively versus 1st quarter 2011.  Clearview Township and the Town of Wasaga Beach had significant increases in MLS® sales activity in 1st Quarter 2012, up 28% and 22% respectively versus 1st Quarter 2011.  Residential sales in The Blue Mountains for the Quarter were essentially unchanged from 1st Quarter 2011 with 35 MLS® sales reported both this year and last.  Lastly MLS® residential sales activity in the Municipality of Meaford continues to remain soft with sales down 5% in the 1st Quarter of 2012 versus the same Quarter last year. 
  Note, all of the above results are for single residential family homes only.  Condominium sales activity in the 1st Quarter remained consistent with 2011.  A total of 66 MLS® condo sales were reported in the first three months of the year one more than in the first three months of 2011.  Vacant land sales continue to remain sluggish in our area and the reason for this may be the high level of single family home inventory on the market for buyers to choose from.  A total of 20 vacant land sales have reported through the local MLS®  system this year as compared to 27 in the first three months of 2011.  In my next post I will review year-to-date sales activity in the various price ranges throughout our market.  In some instances there has been a significant shift in sales form this time last year. 

1st Quarter 2012 Real Estate Sales up 16% Over 1st Quarter 2011

Although area real estate sales dipped slightly in March versus March 2011, MLS® sales activity reported through the Georgian Triangle Association of REALTORS® posted a healthy gain of 16% for the 1st quarter of 2012 with 403 properties changing hands in the first three months of the year versus 347 in the 1st quarter of 2011. Overall, 1st quarter sales volume in 2012 totalled $117.9 million reflecting a 6.4% increase over 1st quarter 2011 sales of $110.9 million.

  Sales activity in several price ranges showed a marked improvement in the 1st quarter of 2012 compared to the same period last year. Unit sales below $250,000 totalled 209 in the 1st quarter of 2012 marking a 12.3% increase over 1st quarter 2011 results; in the $250,000 - $499,999 price range, 1st quarter sales of 154 properties represented a significant 30.5% increase over the 1st quarter of 2011. In the $500,000 - $999,999 price range, 1st quarter sales of 31 properties reflected a slightly weaker demand in this price range for 2012, compared to the 33 properties sold in the 1st quarter of 2011. Lastly, sales activity in the $1 million plus price range during the 1st quarter of 2012 totalled 9 properties, compared to the 10 homes sold over $1 million in the 1st quarter of 2011.

 

The number of new MLS® listings during the 1st quarter of 2012 totalled 1,628 units, up 8.9% from the 1st quarter of 2011. The number of expired listings year-to-date 2012 totalled 802 properties, up 16.2% over the same period last year. First quarter's statistics reflect the fact that 1 in every 4 houses listed for sale actually sell.  Despite sales being up, we still have a lot of slow moving, over-priced properties on the market that buyers are refusing to make offers on.

 

The month of March was the strongest month for new listings in the first quarter, with 618 new MLS® listings and 172 sales.  This is typical once spring arrives as most sellers believe their properties present themselves better once the snow has gone and yards begin to green back up.

  In my next post I will review sales activity in the various municipalities around our area year-to-date compared to one year ago.