Collingwood and Georgian Triangle Market Report - September 2011

Click For Printable Report

Fall is officially upon us and for many the Georgian Triangle is at its most beautiful with the crisp clear autumn air and the trees and hills fully decked out in seasonal colourful splendour. The attributes of the area and its attractions on so many levels do not appear to be lost on property buyers and is well reflected in the most recent statistics for the month of September published by the Georgian Triangle Association of REALTORS® (“GTAR”). Despite recent volatility in the stock markets, persistent negative economic reports coming from south of the border, as well as the apparent instability of the broader international scene due in large part to the European monetary crisis, buyers continue to show confidence in the Georgian Triangle real estate market by racking up a healthy number of property sales over the last month.

After reporting a year over year decline in sales in August, the numbers from GTAR reflect a comparative resurgence in property sales with healthy activity across most price ranges. In fact GTAR confirms that 178 properties sold in the Georgian Triangle in the month of September, a 5% jump from the 169 properties sold the same month last year. Dollar volume gains were even more significant - up 15% over last September, highlighting the activity in the higher priced property market. But as stated, gains were recorded across a broad range of price points. Year to date figures, however, still trail last year’s performance by 6% with 1415 properties sold so far this year as compared to 1513 at this time last year with dollar volume still behind by 2%.

Listings are up by 12% with 651 new properties coming onto the market compared to 580 last September, and year to date numbers are now 2% ahead of last year with 5253 new properties for the year compared to 5127 last year at this time. The positive differential in listings could be interpreted as a sign of ongoing confidence in the market moving forward with sellers bullish about prospects based on healthy property sales recorded for the area. Not surprisingly property inventory has also increased over last year by 14% with 2501 active listings on the Multiple Listing System in the Georgian Triangle compared to 2194 last year at this time, and remains at almost the same level as the month previous when 2515 active listings were recorded in August of this year.

Steady price increases continue to be recorded on a monthly basis with year to date figures reflecting a 4% increase over last year at this time. Specifically, the average sale price published by GTAR for sales year to date was $327,219 compared to $313,990 for the same time last year. Average sale price for single family residential properties for the month of September came in at $359,611, an almost 20% jump from September last year when it was $299,770. Figures measured over the last twelve months, thus based on a broader sampling, are likely more representative of actual price gains showing a more modest 5% increase coming in at $325,803 compared to the $311,070 figure recorded last year for this period.

While the latest reports are positive and bode well for the performance of the Georgian Triangle real estate market, it is important to reiterate that no market is an island. It is unlikely therefore that the Georgian Triangle real estate market can totally shelter itself from what is going on in the rest of the world. That said, in a climate of economic volatility and international market upheaval, investing in property in the Georgian Triangle may well provide an attractive and stable alternative for those looking to diversify their portfolio and reap the physical benefits that only an investment of this kind can offer.

Prepared by: Richard Stewart, Vice President and Legal Counsel