market reports

Click For Printable Report

Spring came early to the Georgian Triangle. The early thaw appears to have percolated through to the Georgian Triangle real estate market which also appears to be in bloom based on the latest monthly statistics published by the Georgian Triangle Association of REALTORS® (“GTAR”). In fact, according to these numbers, April marks the eighth consecutive month of year over year increases in the recorded number of properties sold compared to the same month for the year previous. With all of the chatter in both the print and broadcasted media about housing bubbles, the question may well be asked whether this is a good or bad thing. In addressing this issue, it is important to recognize that discussions regarding unprecedented spikes in sales prices, hot markets fuelled by multiple offers, and purchasers struggling to get into the tight housing market is directed at a few selected urban pockets but has very little bearing on the rest of the Canadian real estate market including the Georgian Triangle. For that matter, the Canadian Real Estate Association has indicated that for the most part, national home sales remain “firmly in balanced market territory” with the vast majority of housing markets reflecting this reality. Their most recent monthly report shows sales activity for the month of March as being 1.6% ahead of levels for March 2011 with home prices actually decreasing by a moderate .5% on a year over year basis. While recent statistics for the Georgian Triangle clearly paint a rosier sales picture than the national average, general market conditions for the area do not in any way reflect an overheated market and are much more in line with market conditions highlighting sustainable growth trajectories mixed with remarkably steady price trends.

In April GTAR recorded 206 property sales for the month, 23% more than the 167 sold in April 2011. That brings the year to date total to 609 sales which is 18% ahead of the 514 sales logged by this time last year. Dollar volume figures are very consistent with unit sales coming in 24% ahead of last year, reflecting the fact that the increased activity is relatively evenly spread across all price levels.

New listings were up by 13% over last year with 756 new properties coming onto the market this last month compared to 668 last April. Year to date figures show a 10% increase thus far with a total of 2383 new listings this year compared to 2163 last year at this time.  Consistent with this and despite the increase in sales, market inventory went up by 6% year over year with 2320 active listings in the Georgian Triangle MLS® system in April of this year compared to 2189 one year ago.

Interestingly, however, in stark contrast to all of the media hype about overpriced and overheated markets, average prices in the Georgian Triangle have remained remarkably stable in recent months and have even shown some moderate softening, as indicated in earlier reports. Based on GTAR’s latest figures, April’s real estate performance is consistent with that. The average residential sales price for the area year to date came in at $317,927 compared to $329,879 recorded last April, a 3.6% drop. Figures for residential (single family) properties measured over a twelve month basis compared year over year were down only slightly ($320,742 vs. $321,537), while monthly average sales prices showed a slight 1% increase this year over last coming in at $315,206 compared to $310,740 in April 2011.

The spring real estate market for the Georgian Triangle appears to have legs. All indicators point to both sustainable growth and stable pricing, reinforced by improving economic fundamentals, steady demand, and accessible financing.  As indicated in earlier reports, however, given flatter price trends, it is apparent that buyers continue to drive a hard bargain and are not prepared to spend recklessly. Sellers therefore will have to remain realistic in pricing their properties. 

Spring came early to the Georgian Triangle. The early thaw appears to have percolated through to the Georgian Triangle real estate market which also appears to be in bloom based on the latest monthly statistics published by the Georgian Triangle Association of REALTORS® (“GTAR”). In fact, according to these numbers, April marks the eighth consecutive month of year over year increases in the recorded number of properties sold compared to the same month for the year previous. With all of the chatter in both the print and broadcasted media about housing bubbles, the question may well be asked whether this is a good or bad thing. In addressing this issue, it is important to recognize that discussions regarding unprecedented spikes in sales prices, hot markets fuelled by multiple offers, and purchasers struggling to get into the tight housing market is directed at a few selected urban pockets but has very little bearing on the rest of the Canadian real estate market including the Georgian Triangle. For that matter, the Canadian Real Estate Association has indicated that for the most part, national home sales remain “firmly in balanced market territory” with the vast majority of housing markets reflecting this reality. Their most recent monthly report shows sales activity for the month of March as being 1.6% ahead of levels for March 2011 with home prices actually decreasing by a moderate .5% on a year over year basis. While recent statistics for the Georgian Triangle clearly paint a rosier sales picture than the national average, general market conditions for the area do not in any way reflect an overheated market and are much more in line with market conditions highlighting sustainable growth trajectories mixed with remarkably steady price trends.

In April GTAR recorded 206 property sales for the month, 23% more than the 167 sold in April 2011. That brings the year to date total to 609 sales which is 18% ahead of the 514 sales logged by this time last year. Dollar volume figures are very consistent with unit sales coming in 24% ahead of last year, reflecting the fact that the increased activity is relatively evenly spread across all price levels.

New listings were up by 13% over last year with 756 new properties coming onto the market this last month compared to 668 last April. Year to date figures show a 10% increase thus far with a total of 2383 new listings this year compared to 2163 last year at this time.  Consistent with this and despite the increase in sales, market inventory went up by 6% year over year with 2320 active listings in the Georgian Triangle MLS® system in April of this year compared to 2189 one year ago.

Interestingly, however, in stark contrast to all of the media hype about overpriced and overheated markets, average prices in the Georgian Triangle have remained remarkably stable in recent months and have even shown some moderate softening, as indicated in earlier reports. Based on GTAR’s latest figures, April’s real estate performance is consistent with that. The average residential sales price for the area year to date came in at $317,927 compared to $329,879 recorded last April, a 3.6% drop. Figures for residential (single family) properties measured over a twelve month basis compared year over year were down only slightly ($320,742 vs. $321,537), while monthly average sales prices showed a slight 1% increase this year over last coming in at $315,206 compared to $310,740 in April 2011.

The spring real estate market for the Georgian Triangle appears to have legs. All indicators point to both sustainable growth and stable pricing, reinforced by improving economic fundamentals, steady demand, and accessible financing.  As indicated in earlier reports, however, given flatter price trends, it is apparent that buyers continue to drive a hard bargain and are not prepared to spend recklessly. Sellers therefore will have to remain realistic in pricing their properties.

Prepared by: Richard Stewart, Vice President and Legal Counsel

Check out Chestnut Park's Collingwood and Creemore listings