Collingwood / Georgian Triangle Market View - October 2009

Residential resale activity across the Georgian Triangle trading area was up considerably during the month of October 2009 relative to the beginning of the year.

As was reported in the Georgian Triangle Real Estate Board’s MLS Statistic Report, 195 properties sold during the month of October compared to 114 during the same month in 2008. This represents a staggering 71 percent increase. While this is a vast improvement, it is important to note that October 2008 is recognized as the beginning of the global economic downturn. Comparing results for the two months’ is somewhat misleading as the market dynamics experienced during the two time periods are completely different. Sale results for the month of October 2009 indicate that the re-sale market in the area is performing at almost the same level as it was in October 2007 when 208 sales were reported.

The number of new listings introduced to the board’s MLS system declined by 27 percent during October 2009 compared to the same month last year from 584 to 432. The difference between the number of active listings on the board’s MLS system at the end of October 2009 compared to the same period last year is less dramatic. There were 2033 MLS listings available at the end of October 2009 compared to 2177 at the end of October 2008.

Trading areas with a lower average sale price continue to generate the most activity with respect to the Georgian Triangle resale market. The average sale price in Wasaga Beach was $261,135 and reported the most number of sales last month with 39 residential MLS transactions taking place. The second busiest trading area was the Town of Collingwood with a total of 26 residential resale transactions and an average sale price of $289,448. Areas with a higher price point experienced a slower pace. Only 16 MLS residential sales took place in The Town of Blue Mountains last month with an average sale price of $448,927.

While the recreational resale real estate market has taken longer to recover, it is gaining some momentum as 2009 approaches its end. For example, there was only 1 sale reported above $700,000 during the month of January compared to 5 reported during the month of October. While the number of higher end sales has increased, it is still moving at a much slower pace relative to the lower end of the market. A number of potential buyers have initiated their search for recreational property, however only a few seem willing to make an offer. While confidence has certainly resumed in the Georgian Triangle housing market, it may take buyers more time to commit to discretionary purchases such as cottages and ski chalets.

At the time that this report is being prepared (November 15) sales activity across the area continues at a steady pace. Ongoing confidence in the economy and historically low interest rates continue to fuel sales. So long as market conditions remain favorable, resale real estate sales at the beginning of 2010 should continue at a strong pace.

Prepared by: Justine Deluce, Vice President, Operations
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