Attention Collingwood Real Estate Investors and Home Owners: Here’s is what’s happening with local house prices
People ask this question all the time and really, it is very challenging to answer how much the market has gone up or down at any given time. Statistics are a tricky thing as there are too many ways to interpret them. But I’ve noticed something interesting.
Our real estate board reports 12-month average sale prices. Averages are not the same as a median price. With a small sampling, the numbers can swing up or down significantly based on a few really low or a few really high sales. They are however an indicator over time. Using that information only, I can see that the 12-month average sale price for a property sold in Collingwood went from $366,634 in July 2015 to $408, 904 last month; an increase of 11.5%.
A better indication is when you can take the same house that has sold once in each year to measure the difference and I’ve noted two in Collingwood. One house that sold exactly a year ago for $321,000 just resold for $387,500; an increase of 20%. I found another one that sold in 2014 for $339,000 and just resold for $438,000; an increase of 30%. Both homes were in subdivisions and less than 15 years old. Given these, I would think it’s reasonable to say that values have climbed in these types of neighbourhoods in Collingwood by 15-20% a year for the past two years. That’s pretty significant to know as an investor.
Given these, I would think it’s reasonable to say that values have climbed in these types of neighbourhoods in Collingwood by 15-20% a year for the past two years. That’s pretty significant to know as an investor.
Then to prove the theory, I tried being more specific so I searched for sales in the town of Collingwood only, single family homes without a garage and voila, the increase in the 12-month average sale price over the last year was 23%. I also compared condos in Collingwood and Blue Mountain and the increased over the last year in the average price was about 11%.
Our market includes several communities and the picture is much the same in other areas but Collingwood leads the pack in price increases. That’s good to know if you are an investor.