128
Escarpment Magazine Fall 2012
THE GORGEOUS SUMMER WEATHER
could
have inhibited real estate sales activity but the latest sta-
tistics released by the Georgian Triangle Association of
REALTORS
®
[“
GTAR”] indicate that buyers did not
check out. Following an unexpected quiet month in June
probably attributed to the change in mortgage regula-
tions and the 16-day notice of these changes, resale de-
mand bounced back and home sales are running on par
with 2007, the best year on record for sales in the region.
Buyers appeared to be ready to invest in the Georgian
Triangle real estate market and take advantage of all of
the benefits which the area offers. The performance of
the property market in August built upon the momentum
of July and countered June that was in decline, and out-
stripped sales recorded for August of last year by 17%.
Specifically 200 properties changed hands in August
compared to 171 in August 2011and 199 in August
2010,
bringing the year to date figure to 1362 sales,
10%
ahead of the pace set last year by this time when
only 1234 properties had sold. So far 2012 figures for
the Georgian Triangle real estate market also moder-
ately surpass those of two years ago when 1344 prop-
erties had sold by this time. Dollar volume sales are even
more impressive, besting last year’s numbers by 25% for
the month of August and 9% better on a year to date
basis, reflecting the fact that sales in the area either ex-
ceeded or equalled those of the year previous in every
price category above $500,000. Listings, however, are
down 5% year over year with 542 new properties com-
ing onto the market as compared to 569 in August of last
year. Stable sales combined with fewer new listings keep
the market in a balanced mode. Year to date the total
number of new listings remains 4% ahead of last year at
this time with a total of 4787 new listings coming onto the
market as compared to 4602 by this time in 2011.
Buyers continue to drive a hard bargain and sellers can-
not expect to command price tags that are out of synch
with a spotty recovery and ongoing broader economic
uncertainty. While prices gains are steady, diverging
trends across the country clearly show real estate is local.
August prices are consistent with the moderate softening
that has been observed over several of the last few
months with average sale price for residential single fam-
ily properties for the month of August coming in at
$328,423 marginally lower than August of last year’s
$329,882. Measured over a twelve month period
prices declined less than one percent, but the average
residential sale price year to date of $314,389 is almost
3%
lower than $323,070 recorded last year at this time.
Banking economists and real estate analysts continue to
call for a moderating real estate market as we move into
the fall and into the first part of next year, and this trend
does appear to be playing out in Vancouver and
Toronto.
Activity among the baby boomer group over 60 has soft-
ened compared to past years. And, people seem to be
cautious about making significant decisions right now.
Our economy is weathering well but there is a concern
about the impact of international markets. Home pricing
depends on buyers’ willingness to pay and sellers’ ex-
pectations and motivation, closely tied to the economy,
interest rates and new mortgage regulations. In the cur-
rent market, the real challenge is balancing market real-
ities for both the seller and buyer. Stricter mortgage
lending guidelines, which came into effect in July, have
taken some potential buyers from the market. Some first-
time buyers may have difficulty qualifying for mortgage
financing due to shortened amortization periods that will
increase monthly payments. This segment of the popula-
tion represents up to half of all transactions and corre-
lates to low interest rates. Affordability, debt levels,
tighter lending rules, and global economic instability all
appear to be part of this equation, but comparatively
speaking the Canadian real estate market continues to
be remarkably solid and stable with the Georgian Trian-
gle proving to be no exception to this. There is little indi-
cation of a major correction, and the Georgian Triangle
has not experienced some of the significant price spikes
felt in some of the more overheated urban markets.
*
BY
A
NTHEA
W
HITE
GEORGIAN TRIANGLE REAL ESTATE MARKET UPDATES
escarpment
real estate
MARKET WATCH