Southern Georgian Bay Real Estate Sales Set All Time Record
Once again, real estate sales in the local area broke records in June 2016 with the 287 sales representing a 19.1% increase over June 2015. Year-to-date, sales are up 21.4% in our region compared to last year.
While we have a painful shortage of available supply compared to demand, there was a little relief last month with a 14.5% increase in the number of new listings compared to the same month last year as sellers try to take advantage of the great market conditions for them. Having said that, the year to date inventory of residential properties for sale in our area is down by 35.6% to fewer than 600 properties available for sale in the entire Western region. In areas such as Clearview, Collingwood and Wasaga Beach, the sales-to-listing ratio is hovering around 70% – true seller market conditions.
Currently, there are approximately 2.7 months of inventory available
Currently, there are approximately 2.7 months of inventory available compared to 4.9 months at this time last year. Those are tight conditions and again, the most challenging conditions are in the more urban centres versus rural areas.
I have recently had a large number of buyers looking for condominiums to buy in Blue Mountain, outside of the Village and, in the Collingwood area. Again, there is a real shortage of options available in that segment of the market as well.
Average Sale Prices
Looking at the 6 key areas of our region that include Clearview, Collingwood, Meaford, Grey Highalnds, The Blue Mountains and Wasaga Beach, the 12 month average sale price as of the end of June 2016 was$420,195 compared to $395,029 a year ago; an increase of 6.3% and $25,000.
There were 275 sales of residential condos in the first six months of this year; an increase of 22.8% over last year. The average sale price has climbed 8.8% to $277,495.
So what is going on?
We know that market conditions across the country are strong and the media continually points to foreign investment. I think there are many other factors at play as I described in a previous blog post. Whatever it is, it will not continue forever. The question people ask is, will it slide back? Is there a bubble? I don’t think there is. I suspect we will see a levelling off in price increases but I don’t see a slide back at all.
In our area, the market is being driven by numerous factors. Retirees from the GTA, by young people wanting to make a lifestyle change, by secondary property buyers… many different demographics are at play and right now, money is cheap. As someone recently said to me, there are about 9,000 household units in the town of Collingwood. If just 9,000 people from the 9 million in southern Ontario wanted to come here, that would double the population overnight. That pretty much sums it up, doesn’t it?
Please Note: Statistics have been derived from the MLS® data of the Southern Georgian Bay Association of REALTORS®