As you might expect in May, there was an uptick in the number of new listings over April but still well behind May 2016 with 11% fewer new properties listed. The number of sales last month was on par with a year ago and up 16% from April due to additional “inventory” available.
Dollar values are substantially higher this year reflecting the increased prices and we are seeing residential properties generally selling for 98 to 101% of asking price. We have seen some sales go much higher and even 30% over asking in some cases!
The greatest increase in sales has been seen in the over $1million dollar range where the number of sales is up a whopping 124% compared to last year.
Looking at individual areas in South Georgian Bay, the supply and demand seen based on the sales to listing ratios are tightest in Clearview and Wasaga Beach year-to-date where to sales-to-listing ratios sit at 86% and 77% respectively. It continued to be a strong Sellers market in all areas in May.
There are currently fewer than 400 homes for sales through-out the region as the tight supply continues. Having said that, we are seeing what appears to be more listings in the last week.
A personal observation: Although I can’t yet back up my comments statistically, I have noticed that there has been a sudden and noteworthy change in the market in the last few weeks. Sellers often set “offer dates” and in some cases, these are going by with no offers or fewer multiple offers than we’ve been seeing in the past. We’re noticing fewer showings on new listings. We know that the GTA market dropped (number of sales not prices) over 20% in the month following the introduction of the new Fair Housing Plan and that seems to have had a ripple effect. I also have maintained for months now that our market was being driven by investors but we’ve hitting a tipping point where the prices don’t fit the rents and some of these folks are pulling out. I suspect the soft landing in the market has started and will continue for some time before climbing again as it inevitably does.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg