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113
Spr ing 2012
Escarpment Magaz ine
THE NATIONAL HOUSING MARKET IS STABLE
AND REMAINS WELL BALANCED,
however, eco-
nomic and job growth varies widely across the country sug-
gestinga softening trend in somemarkets. A lot of ink is being
spilt by the press on price bubbles and the impending likeli-
hoodof a correction in theCanadian real estatemarket. It is
worth noting, however, that much of the attention is focussed
on major urban centres such as the Greater Toronto Area
which have sustained significant inventory shortages result-
ing in year over year price increases approaching the dou-
ble digit range.
A recent example appeared in MacLean’s Magazine. Its
headline says it all: “You are about to get burned: Canada
looks exactly like the U.S. before its devastating housing
crash –maybe evenworse.Why it’s officially time topanic.”
However an examination of the article’s content reveals that
it is short on any hard data that would indicate that it is time
to panic. The premise of the article is that money is cheap,
buyers are spending recklessly and a day of reckoning is
comingand soon. The latest market dataprovidedbyGTAR
does not support the MacLean’s position. In fact the hard
data that is available indicates that theGTAR is buoyant. The
Georgian Triangle has logged only modest price increases
and sustainable sales performance over the last few quar-
ters. In addition, these articles and editorials fail to take into
account the broader affordability picture. Carrying costs on
properties and the share of average household income
beingexpendedby homeowners on those carrying costs re-
main at historically competitive levels andwithin objectively
acceptable ranges due to persistently low interest rates.
With the volatile financial markets of the past three years,
some investors are turning to real estate for market appreci-
ation, positive cash flow from rental income, tax deductions
on the mortgage interest and renovation work and earned
appreciation when a property is renovated/upgraded.
The stableeconomy, conservative fiscal policies and respon-
sible financing have resulted in a sustained interest in real es-
tate. That said, real estate is local and theGeorgian Triangle
Association of Realtors
®
(GTAR) is showing no signs of a
downturn. In fact, sales for thepast sixmonths haveexceeded
those recorded for the same months in the past year. While
theurbanmarkets like Torontoaregoing throughawild ride,
GTARhasn’t experienced the freneticpace. Low interest rates
continue to draw homebuyers to the housing market and the
market is proving resilient in the face of ongoing global eco-
nomic and financial uncertainty. Global news is, however,
making both buyers and sellers more cautious.
Pricing realistically is “key”. Buyers are studying the market
carefully through internet resources andaremovingpatiently
until they find the right fit. Socialmedia tools lendan invaluable
resource, and currently, move-in-ready is usually the right fit.
Homes that need an abundant of updating are lingering on
themarket.Newconstructionand renovations have created
a significantly higher calibre of housing stock. The diverse
housing choices in our areaand variables fromarea toarea
within the regionprovideamultitudeof options for thebuyer.
The first quarter of 2012 saw a 16% increase in sales with
403 units sold [347 for the same period in 2011]. YTD dol-
lar volume was also up by 6% from the $110,898,609 fig-
ure in2011 to$117,952,178 in2012.Total listings are up
9%. Expired listings are up 16% for a total of 802. The
breakdown in sales is quite significant. Of the 275 single
family sales only 45 were between $400,000 and
$1,000,000. There were nine sales between $1.010 mil-
lion and $1.375 million and no sales above $1.375. Last
year there were four sales between $1,465,000 and
$3,250,000 in the first quarter. The68 condominiumsales
included 20 over $250,000.
One of theweakest price points is between $700,000 and
$1millionwith six sales in2012, YTD, and13 in2011. TBM
continues to have the highest average price at $522,870
versus $285,989 in Collingwood, $238,,600 in Colling-
wood, $276,558 in Wasaga Beach and $280,534 in
Meaford. There are currently 93 residential properties for
sale over $1,000,000, five from$1million to $1.5million,
18 from $1.5 million to $2 million, 15 between $2 million
and $3 million and nine over $3 million. In the commercial
market there are ten listings ranging in pricing from$1.490
million to the Terrasan property for $13.5 million.
Collingwood -
2011 was a great year for construction in
Collingwood with values reaching $71,423,890 [versus
$48,674,461 in 2010 and $63,271,370 in 2009]. Values
for January and February 2012 total $5,751,207 with major
permits for Lakeside Pointe/Eden Oak and renovations at the
YMCA.
The latest StatisticsCanada report has talliedCollingwoodpop-
ulation figures at 19,241 people, a 11.3 % increase over the
2006 17,290 figure. With total dwelling at 10,695, 78% are
occupied by permanent residents, 22% by seasonal residents.
Wasaga Beach experienced a growth rate of 16.7%,
ClearviewandTBMdecreasedby2.5%and5.5%respectively.
TheVictoriaSchool House project official plan amendment has
been adopted by council and has been sent to the County of
Simcoe for final approval. The development locatedatMaple,
Fifth and Sixth Streets features 19 units- six semi-detached, six
townhouses and sevenapartments in the former school. Admiral
Collingwood Place has received zoning by-law, official plan
amendment approvals and has alsobeen sent to the county for
approval. Council has endorsed the recommendations for re-
development of theCentral Park site at the corner of Hume and
Paterson Streets.
*
BY
A
NTHEA
W
HITE
GEORGIAN TRIANGLE REAL ESTATE MARKET UPDATES
escarpment
real estate
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