Georgian Triangle Real Estate Market Report: 2nd Quarter 2016
Overview: Q2 Sales Up 37% From Last Year, Record Sales For June
It was another big sales month and quarter for the Georgian Triangle real estate market. June’s sales of $111,737,695, while just under May’s all-time record, set a new June record, up 27% from last year. And as Graph 1 shows, Q2-2016’s sales of $325,372,143 were up 37% from 2015’s previous record and 62% from 2014. Also, year-to-date sales topped $500 Million for the first half of 2016, suggesting that we might hit $1 Billion in annual sales for the first time.
The area also saw record unit sales across the board. 2016’s year-to-date totals of 1380 were up 21% from 2015. And as Graph 2 shows, Q2’s sales of 908 were up 25% from 2015 and 45% from 2014. Lastly, June’s 309 sales were up 14% from last June’s record. Not surprisingly, June had its share of multiple and overprice offer situations, just as we saw throughout the spring.
Regarding the average sales price, the Georgian Triangle’s year-to-date figure of $362,634 is up a very nice 8% from a year ago. All these numbers indicate that the regional demand for listings still GREATLY exceeds the supply. And again, if anything the demand is increasing.
The Market In Detail
As Table 1 shows, 2016’s volume and unit sales translate into all of the main market details. Sales are up from 2015 in all price ranges except the $1M-$1.499M range, where they are even. While the high-volume range of $100K-$299K is up 4%, the entire $300K+ range is up 40%, with particularly big gains of 46%, 67% and 71% in the $800K-$999K, $500K-$799K, $1.5M+ ranges respectively. Even the under $100K price range – which is usually down with each passing year due to fewer homes being listed – is currently up 20%.
Regarding the demand for new listings, Q2’s sales-to-listings ratio of 63% and 2016’s sales-to- listings ratio of 58% are both up considerably from 2015. At the same time, June’s, Q2’s and 2016’s expired listings are down 40%, 23% and 35% respectively. This combination of higher sales-to-listing ratios and fewer expired listings also indicates a big demand for new listings.
As Graphs 3 and 4 show, 2016’s year-to-date dollar and unit sales are way up from that of 2015 and 2014. This year’s dollar sales of $500,434,610 are up 31% and 65% from 2015 and 2014 respectively, while 2016’s 1,380 unit sales are up 21% and 45% respectively.
Looking now at Graphs 5 and 6, while June’s sales were down slightly from May’s big numbers, they were still well above last June’s record. In fact, to put 2016’s increases in perspective bear in mind that every month of 2015 was a record breaker in terms of both volume and unit sales.
A Few More Numbers To Fill In The Picture
June’s metrics also translate into the details of residential home sales by community (Graph 7) and sales by property type (Graph 8). 2016’s residential sales are up 21% overall from 2015.
The gains are mainly due to high-volume Wasaga Beach’s 29% increase and Clearview’s continuing strong market performance, now up 49%. Grey Highlands, The Blue Mts. and Collingwood are also up 21%, 21% and 14% respectively, while Meaford is currently down 4%. Lastly, 2016’s condo sales are up 21% from 2015, while vacant land sales are up 28%.
The Takeaway
The extraordinary real estate ride just keeps climbing to new heights. June was the region’s 27th consecutive record sales month. Q2’s sales topped $325 Million. And the first half of 2016 broke through the $500 Million threshold – up 37% from last year at this time. To put that in perspective, one of our long-time Agents recently noted that ‘Up until just a few years ago the regional market was struggling to get to $500 Million for the entire year’.
We’ll certainly be watching and waiting for the remainder of 2016 to see whether we crack the big $1 Billion mark. Last year more than 52% of the region’s sales were completed from July to December, so we definitely have a chance. And so, the overheated combination of record sales, rising prices, fewer new listings and fewer expired listings – not to mention a surprising number of multiple offer and overpriced offer situations – just keeps on keepin’ on. All that said, if you’ve considered putting your home on the market now is a great time. There’s a big demand for listings and your chances of getting a great price in a very timely manner are excellent. As to whether 2016’s record sales will be sustained throughout the year as more and more people discover and take advantage of the Georgian Triangle’s four-season lifestyle and great value, only time will tell. Please stay tuned as we regularly provide our Georgian Triangle Market Reports in order to help you make better-informed, real estate decisions.
