With the first quarter (Q1) of 2018 now behind us, we may see the beginning of a new trend emerging and, how it moves from here will be dependent on the listing inventory we see in the next quarter ahead. All statistics below are for the key areas we serve including Collingwood, Clearview, Meaford, Grey Highlands, Wasaga Beach and the Blue Mountains.
The number of single family and condo sales in these areas were at their lowest level in several years as you can see in the charts below. Despite this, both the average and median sale prices continued to climb during the quarter. As of the end of March, single family homes had an average sale price in the area of $516,823 and a median price of $450,000. Condominiums had an average price of $345,024 and a median about the same.
Our territory is large and diverse. Readers should be aware that there are large variances within the region. For example, the average sale price of a home in Meaford was $384,500 while in The Blue Mountains, it was $870,300. The supply of properties for sale is tightest in Collingwood and Meaford and in the region, there are approximately 4 months of inventory currently available; double what it was at this time last year.
Since the new mortgage rules came into effect in January, it has become more difficult for some buyers to qualify for mortgages and in many cases, they are approved at a lower level. This, combined with record prices that are unattainable for many, have curbed demand from both local buyers and investors. There are still many out in full force and we are still seeing multiple offers on well priced properties however, over-all, it has had an impact on demand in certain segments of the market.
Early anecdotal evidence suggests that we will see an increase in the number of listings coming to the market over the spring as sellers jump in to capture what may be the tail end of an unprecedented market run-up. If this happens and supply increases against softening demand, we will see a return to more normal and balanced market conditions for the balance of the year.
Note: All data and statistics have come from the MLS® system of the Southern Georgian Bay Association of REALTORS®.