Collingwood / Georgian Triangle Market View - Winter 2009

The market data released by the Georgian Triangle Real Estate Board (GTREB) for the month of January 2009 continued to reflect the overall malaise experienced by all economic sectors over the past several months. Many buyers continue to wait on the sidelines rather than take advantage of historically low interest rates and an inventory of properties priced at lower levels than what we have experienced in many years.

The total supply of new listings introduced to the Georgian Triangle’s MLS system during the month of January 2009 fell 4%. This is likely the result of would be sellers holding off until market conditions return to a more balanced state with respect to favouring both buyers and sellers – not just the buyer. However, while new listings introduced to the MLS system for combined trading areas did decrease, there were a number of key GTREB trading areas in which the number of new listings increased, as will be outlined further on in this report. The total number of reported sales across the Georgian Triangle’s combined trading areas fell 59% during the month of January 2009 compared to the same period in 2008.

The reported average sale price recorded for the combined trading districts fell 5.9% from $289,259 in January 2008 to $272,143 in January 2009.

A closer look at supply and demand activity by key trading area comparing January 2009 to January 2008 reveals the following: The number of new listings introduced to the Collingwood trading area increased 13% from 43 new listings in January 2008 to 49 new listings in January 2009. The total number of sales that took place in the Collingwood trading area fell 54% from 11 in January 2008 to 5 in January 2009. The number of new listings introduced to the Town of the Blue Mountains trading area increased by 34% last month compared with the same thirty-one days in 2008. 69% fewer sales took place in the Town of the Blue Mountains during the month of January 2009 compared with the number of reported sales during the month of January 2008.

A break down of reported sales through the MLS system by price category reveals that not a single property sold for more than $700,000 during the month of January 2009. The majority of the reported sales were between $150,000 - $250,000. As we move through the remaining months of winter and into the spring market, all will wait to see if the proposed stimulus packages (both in the US and in Canada) will have the desired effect of restoring stability to the market and ultimately, provide the catalyst needed to restore consumer confidence in the real estate market and the economy overall.

Prepared by: Justine Deluce, Vice President, Operations
705.445.5454 — www.chestnutpark.com