Collingwood / Georgian Triangle Market View - December 2011

With the end of the year, dawns a new one replete with all of the wonder and anticipation of what the next year will bring. While December marked a sputtering and half-hearted start to winter and the ski season, the same cannot be said of the real estate market which for the most part was firing on all cylinders and producing impressive results. Based upon market conditions, activity to date, and continuing low financing costs, the prospects for the new year look promising.

The statistics released for the month of December by the Georgian Triangle Association of REALTORS® indicate that property sales within the Georgian Triangle were up by 28% over December 2010. Specifically 113 properties changed hands in December compared to only 88 last year at this time. In fact this figure represents the highest number of unit sales recorded in the Georgian Triangle for the month of December since 2004 when 117 properties were sold. In addition, December marks the fourth consecutive month in which unit sales outstripped the numbers recorded for the same month in 2010.

December’s sales brought the year-end unit sales total to 1869 which fell only 2% short of last year’s total of 1906 properties sold.

Dollar volume figures provide further insight into the nature of market activity. While year-end unit sales trailed last year’s figures marginally, the dollar volume actually surpassed that of the previous year by one percent, highlighting the strength in the higher priced property market experienced earlier in the year. The dollar volume property sales total of $548,223,037 for 2011 is further noteworthy in that it represents the highest such figure for the Georgian Triangle since 2007. Having said that, the surge in sales in December appears to be concentrated in the mid to lower price ranges of the real estate market as dollar volume fared only 6% better than December last year compared to the 28% boost in units sold. Specifically activity in all price categories above $800,000 was slower than last year at this time with the bump in sales occurring in a range of price points below that level, somewhat of a departure as indicated from sales trends earlier in the year.

Listings too were up by 22% over last year with 329 new listings coming onto the market compared to only 270 in December 2010, bringing year-end figures to 6477 new listings, 3% more than the 6414 properties which came on the market last year. A year over year comparison of inventory at year-end reveals numbers that are remarkably consistent with the year previous with 1722 active listings on the market at the end of 2011 compared to 1730 last year, resulting in only a 1% difference.

Price trajectories continue to bode well for ongoing affordability with trends suggesting modest steady growth and relative price stability moving forward. The year-end average sales price for properties in the Georgian Triangle came in at $324,083, only 3% higher than the average sales price of $315,018 recorded last year at this time. Not surprisingly, average prices for residential single family properties for the area over the last 12 months show a similar 3% price bump with figures coming in at $324,246 compared to $314,984 in 2010, though the numbers for December reflect the above-noted fact that sales activity was concentrated less in the higher price ranges and more in the mid to lower end of the market as average prices for residential single family properties in the area fell 9% year over year, with numbers coming in at $311,748 compared to $341,583 in December one year ago.

In summary, as the winter season seems to have finally arrived in earnest, and the region’s hills and trails are once again filled with skiers and snow revellers of all kinds, it is apparent that the Georgian Triangle real estate market has experienced another strong year and is poised for ongoing stability and sustainable activity in the months to come. The many attractions, facilities and services offered within the area continue to draw both full time residents and vacationers to the Georgian Triangle. Barring any significant upheavals or hiccups on the international stage, the fundamentals for a strong property market for the Georgian Triangle in 2012 are in place, and conditions for a positive outlook should prevail.

Prepared by: Richard Stewart, Vice President, Legal Counsel
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