|
Area Real Estate Sales Trending to More Balanced
Market Conditions
Overall, area real estate sales reported through
the MLS® system of the Georgian Triangle Real Estate Board continued to show
strength in the second quarter of 2010 versus the same quarter last year despite
the tightening up of mortgage qualification criteria and slight increases to the
historically low mortgage rates. This, coupled with the arrival of Ontario’s
Harmonized Sales Tax (HST) effective July 1st, may account for slower growth in
sales during the remainder of the year.
"According to the Conference Board of Canada’s
index of consumer confidence, consumer sentiment lost some ground after having
increased in the first quarter, and is now roughly back on par with levels
reported at the end of last year. The decrease in confidence reflects weaker
outlooks for household budgets and employment, and less enthusiasm about making
major purchases."
Statistics for the month of June 2010,
reflect a slight softening in number of listings and number of sales versus June
2009: 503 properties were listed on the local MLS® system in June 2010, vs. 551
in June 2009, a decrease of 8.7%; 197 properties sold in June 2010, versus 206
in June 2009, a decrease of 4.3%. Sales volume, however, was $61,790,689 in June
2010, vs. $50,660,918 in June 2009: an increase of over 21% stemming from
increased sales in every price category above $500,000.
Quarterly, unit sales activity rose
12.2%, with 599 properties selling in Q2 2010 versus 534 in Q2 2009; the
resulting sales volume of $175,156,104 (Q2 2010) netted a 29.5% increase over
the $135,306,947 figure for Q2 2009. As reflected in the chart above, all price
categories in Q2 2010 showed a marked increase over Q2 2009, with the exception
of the under $250,000 range, which actually exhibited a slight decrease (3.0%)
in number of sales, with the most significant increase of 138.1% being in the
$500,000 to $999,999 range where 50 houses sold in Q2 2010 versus 21 sales in Q2
2009. Number of sales in the $250,000 - $499,999 range increased 21.9%, and the
over $1 Million range increased a significant 116.7% (Q2 2010 vs. Q2 2009). New
MLS® listings totalled 1814 in Q2 2010, representing an increase of 4.8% over
the 1731 properties listed in Q2 2009.
For the first six months of 2010, 985
properties have changed hands year-to-date (YTD), surpassing the 769 properties
sold same period last year, an increase of 28.1%. MLS® Sales volume of
$281,255,054 (June 2010 YTD) represents a solid 47.6% increase over $190,541,815
(June 2009 YTD). As noted in the chart above, all price categories have seen an
increase in number of sales June 2010 vs. June 2009: under $250,000 520 vs. 494,
or 5.3% increase; $250,000 to $499,999 375 vs. 234, or 60.3% increase; $500,000
to $999,999 75 vs. 34 or 120.6% increase and in the over $1 Million category, 15
sales vs. 7 sales, or an increase of 114.3%. The current Georgian Triangle MLS®
sales-to-listing ratio shows a return to more balanced market conditions. With
the introduction of the H.S.T., the possibility of slightly higher mortgage
rates and tighter qualification rules for mortgage financing, sales activity is
expected to remain stable in the months yet may decrease slightly from the
somewhat hectic pace experienced in the last quarter of 2009 and first quarter
of 2010.
For more in depth analysis of a specific municipality, contact your Local
REALTOR® of the Georgian Triangle Real Estate Board.
Information provided by the Georgian Triangle Real Estate Board, copyright
2009. E&OE.
|
