Collingwood / Georgian Triangle Market View - September 2009

Moving into the fall, residential real estate sales continued at a steady pace during the month of September 2009.

As was reported in the Georgian Triangle Real Estate Board’s “MLS Statistic Report”, 189 properties sold during the month of September 2009 compared to 175 properties during the same month in 2008. This represents an 8 percent increase. However September’s sales dropped slightly compared to August 2009 when 216 properties were traded through the MLS system. This represents a 12.5 percent decrease. Year-to-date, there were 5 percent fewer sales at the end of September 2009 (1392) compared to the same time period in 2008 (1462). This slight decrease year-to- date can be attributed to the lack of sales activity experienced during the first four months of 2009.

The majority of the sales across the area took place in Wasaga Beach with 35 sales reported to the Georgian Triangle Real Estate Board and the Town of the Blue Mountains with a 23 sales reported last month. The Town of Collingwood came in third with respect to total number of sales with 22 transactions taking place.

While the number of transactions taking place across the area has increased relative to the lack of sales happening at the beginning of the year, the bulk of the activity is within the low to mid price point range ($150,000 - $400,000). There were fifteen sales between $500,000 - $1,000,000 compared to twelve sales during the same period last year. The market above the $1 million dollar mark continues to be relatively soft with only two transactions taking place last month compared to three during September 2008. While consumer confidence in the real estate market and money markets has resumed, this has yet to take place at the high end of the market in a significant way. Recreational purchases are taking place, however they tend to be at a more modest price point.

The total dollar volume of real estate sold though the MLS system for the area rose 11 percent from $46,456,244 dur- ing the month of September 2008 to $51,497,520 during the month of September 2009. The total dollar volume of real estate traded on a year-to-date basis at the end of September 2009 was 5 percent lower ($357,793,894) compared to the same period in 2008 ($377,677,028). This year-to-date decline can also be attributed to the lack of sales dur- ing the first four to five months of this year.

A total of 561 new listings were introduced to the Georgian Triangle’s MLS system during the month of September 2009 compared to 522 new listings during the month of September 2008. This represents a 7 percent increase. The total number of new listings introduced to the board’s MLS system year-to-date at the end of September 2009 was 4709. This represents a 1 percent decline in the number of listings available to buy during the same period in 2008.

Price at the end of September was almost identical to the same period in 2008. The average residential sale price year-to-date for all trading areas at the end of September 2009 was $281,607 compared to $280,253 during the same period in 2008. The most affordable area in which to buy a property during the month of September was in Tiny Township where the average sale price reported was $178,000. The most expensive area in which to purchase a prop- erty was in the Town of the Blue Mountains where the average sale price recorded for the month of September 2009 was $481,783.

At the time that this report is being prepared (October 15) we are well into the fall market and sales continue at a steady pace. As interest rates begin to rise, many buyers who have been in a “wait and see” mode may decide to act now as financing terms may become less favourable in the months to come. While it is impossible to predict where interest rates will go, this recent increase may well create an influx in sales activity.

Prepared by: Justine Deluce, Vice President, Operations
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