The Georgian Triangle Real Estate Market Spikes in March Driving Record First Quarter Sales Despite Fewer Listings.
About the Georgian Triangle Real Estate Region
The Georgian Triangle is a geographic region in Southern Ontario containing the counties of Bruce, Grey and Simcoe which surround southern Georgian Bay, mostly Nottawasaga Bay, in particular. The main urban centres within the Georgian Triangle include Owen Sound, Collingwood and Barrie. The Blue Mountains sits at the heart of the Georgian Triangle and is home to Ontario’s only year-round mountain resort and spa – Blue Mountain Resort. The Blue Mountains is a community where you can enjoy world-class skiing, golf, spas, dining & more.
The Georgian Triangle Real Estate Market
In last month’s report we pondered, after February’s 4% unit sales drop, whether the market was finally slowing due to a shortage of homes for sale.
Well, so much for that hypothesis…
Sales rebounded with a huge spike – not only a record for March, but the region’s second best month ever after last August. Volume sales of $116,439,226 were up 67% from last year’s prior March record of $69,663,824, while unit sales of 275 were up 48% from last March’s 186. The spike came despite listings being down 20% from a year ago.
2017’s record sales, big average price increase and incredibly high 81% sales/listings ratio all indicate that the demand for listings greatly exceeds the supply. There is no doubt among Georgian Triangle real estate agents that sales would be much higher still if there were more homes on the market.
With a huge 40% increase in Q1 sales compared to 2016 we are in for a fast and furious market. Multiple offers have become the norm in all sectors of the market as a result of limited inventory.
“Matthew helped us purchase a property on Saturday, with professional negotiations and timely deadlines – we avoided a multiple offer situation”
– David and Indra.
Working with the Blue Mountain Property team, we’ll find the best solution for your real estate needs. Contact Matthew Lidbetter to guide you through your real estate transaction.
As the Graph below illustrates, Q1-2017’s unit sales – with one exception – translate directly into all of the market metrics for different price ranges.
While unit sales are down 15% in the high-volume $100K-$499K price range, they’re way up in all other ranges. The $300K-$499K and $500K-$799K ranges are up 25% and 85% respectively from Q1-2016. The entire $800K+ luxury home segment is up 53%, with huge gains of 130% and 67% in the $1M-$1.999M and $2M+ ranges respectively. Even sales in the under $100K price range – which have generally decreased with each passing year due to fewer and fewer homes being listed at that price – are currently up 77% from one year ago.
As 2017 progresses it will be interesting to see whether the increasing demand for high-end homes is sustained and what impact it has on volume sales and prices generally.
The question remains: How long can the unlikely combination of fewer and fewer listings, greater and greater demand, record sales, rising prices and multiple offers continue?
The crystal ball is cloudy, but one thing is certain: the attraction of this region’s beauty and possibilities just keeps growing. And March was the Georgian Triangle’s 36th consecutive record month for volume sales. So we’ll close with our usual refrain: If you’ve considered selling your home, your chances of getting a great price in a timely manner are excellent.
As to whether the region’s record sales will continue throughout 2017 as more people discover the Georgian Triangle’s four-season lifestyle and great value, time will tell.
Blue Mountain Property is the most experienced and knowledgeable real estate team available to help you with your Blue Mountains real estate options.
If you are looking to buy or sell property in the The Blue Mountains, Collingwood, Thornbury, Meaford or surrounding area, let’s chat.