1st Quarter Real Estate Market Report 2019
The end of the first quarter has ushered in spring and the heating up of the market has already started. The number of listings was up slightly year over year from March of 2018 with a 3.5% increase. The ratio of sales to new listings was down 7.1% which coincided with this minimal increase in listings. This very slight cooling of the market occurred in the sales activity which was down only marginally by 2% year over year. This translates as seven fewer sales in the first quarter this year over the same quarter in 2018.
The good news is that this slow-down was insignificant As it did not affect either the average price or the increase in new listings. Indeed, the number of listings in the western district has climbed upwards with a 3.5% increase year over year.
This means that overall supply still remains at historic lows and properties are scarce. The good news for sellers is that the average price of property rose 11%. In fact, while listings increased slightly in the Western District of Southern Georgian Bay, the prices on properties remained, not only competitive, but on the rise. We’ve also seen inventory growth due to ongoing developments in the Western District, resulting in a corresponding increase in the re-sale market.
Looking back at the first quarter of 2019: The average price of a home sold in the first quarter of 2019 in the Western area of Southern Georgian Bay was $550,577, an increase of 11% year over year. Remarkably, the ratio of sales to new listings ratio was 53.8%…which emphasizes that properties are indeed selling, regardless of the season, even during a cold snowy winter, such as the Western District experienced in the first quarter of 2019. In fact, if the current rate of sales activity continues, the entire inventory would sell in less than 4.5 months, slightly longer than the previous quarter.
This news bodes well for Sellers, while still remaining encouraging for Buyers, as any increase in inventory, no matter how small, is a good sign for Buyers. Depending on the style of property and the price, the market seems to be adjusting to accommodate both Sellers and Buyers. While the market shows some softening in other areas, Southern Georgian Bay is still in an upswing but clearly on a path to a better balance for all parties.
Investment in property in the Southern Georgian Bay Area is well worth considering as prices continue to be on the rise attracting new businesses and increased services as our community blooms with new growth. Do you have a property to sell or are you interested in buying? For top-notch service and value, give the Rioux Baker Team a call at 705-445-7085.