When spring finally arrived in Southern Georgian Bay, the number of listings swiftly rose along with the temperature.
While listings traditionally increase in the spring, and are up 24.7% from just 2 months ago, there was still very little choice available due to low inventory.
Sales in niche markets continue to be competitive as the number of listings continues to fall behind the demand. As property listings fell to historic lows, the average sale price of property in Southern Georgian Bay continued to increase. While listings were far fewer, as much as -11.3% less compared to June 2017, the prices of properties remained, not only competitive, but on the rise.
Looking back at the 2nd quarter of 2018: The average price of property sold in June increased by a record 5.7% year over year. The year-to-date average price was up 2.1%.
Unfortunately for Buyers, the number of properties available continued to decline year over year which favoured a Seller’s Market as evidenced by the ratio of sales to listings. The ratio of sales to properties listed to date in 2018 was statistically identical to the same time period in 2017 and much higher than years prior to 2016.
Listings for Buyers continued to be limited throughout the 2nd quarter. Properties were on the market for less time and for competitive prices. The number of listings continued to edge downward and year-over-year was down 11.3%. Needless to say, as a result, the number of sales was down 23.7%. However, the average sale price of $493,294 increased by 5.7% from June of 2017.
In fact, if the current rate of sales activity continues, the entire inventory would sell in less than 3.6 months in the Western Region of Southern Georgian Bay.
We have Buyers, but we need listings. This is reflective of the strong market which continues to attract all buyers. While the market shows some softening in other areas, Southern Georgian Bay is still in an upswing. Has the market softened with new mortgage rules, higher interest rates and steeper prices? While it seems the market has softened a minimal amount, and with less properties sold, the prices are continuing to rise.
Investment in real estate in the Southern Georgian Bay Area is well worth considering as prices continue to climb. 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.