Collingwood / Georgian Triangle Market View - May 2009

The Georgian Triangle Real Estate Board (GTREB) released the "Market Summary Results" last week for the month of May. Key market indicators continue to reflect the stabilizing trends witnessed over the past three months with respect to residential real estate sales across the area. As the number of real estate sales in Ontario's urban settings continue to increase, so too are sales in markets known for properties deemed to be more recreational in use. However it is important to note that the uptick in recreational property sales has been much more modest.

While the demand for property across the area is not at the same level as it was in the spring of 2008, appointment activity across the area has increased dramatically compared to activity experienced a short couple of months ago. According to the GTREB's MLS Statistic Report, 164 sales took place during the month of May compared to 187 sales during the same month last year. This represents a decrease of 12 percent. The total number of sales reported year-to-date at the end of May was 565 compared to 765 sales during the same period in 2008. This represents a 26 percent decline. This is a significant improvement with respect to the 49 percent difference in the total number of sales reported year-to-date at the end of February 2009 compared to the total number of sales reported during the same period in 2008.

There were 4 percent fewer properties listed on the GTREB MLS system year-to-date at the end of May compared to the same period last year. While the number of properties for sale is currently keeping pace with demand, this balance might easily be tipped if the inventory of new listings is not replenished over the summer months. Homeowners contemplating whether or not to put their property on the market vs. waiting until the fall or even next year, should take advantage of the lack of property inventory and consider listing now.

The average sale price reported for the month of May 2009 for all GTREB trading areas fell a marginal 2.9% compared to May 2008 from $285,693 to $277,422. The most expensive area within GTREB's geographical trading boundaries in which to buy a property in May 2009 was Grey Highlands where the average sale price was $568,300. The most affordable trading area during the month of May was Clearview where the average sale price was $238,175.

Positive media headlines reporting signs of a stabilizing economy and historically low interest rates have contributed to the increase in sales activity that we have experienced across the province of Ontario this spring. The key ingredients to a healthy and potentially robust residential real estate marketplace are present and, while it is impossible to predict the future, all indications are that these conditions will continue to be well into the summer and potentially the fall.

Prepared by: Justine Deluce, Vice President, Operations
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