As we begin a new year, many wonder if soaring real estate prices and low inventory will continue to be the trend throughout Collingwood and south Georgian Bay.
In its most recent published report, the Southern Georgian Bay Association of Realtors stated that residential sales in November 2017 recorded through the MLS® System of the Southern Georgian Bay Association of REALTORS® came in below near-record levels from the previous year.
The report stated that home sales totaled 189 units in November 2017, down 17.8% from last year’s November record but on par with the 10-year average for the month.
Year-to-date home sales in November 2017 totaled 2,997 units. This number was reported as being down 16.6% from record sales set last year, tied with 2015 for the second highest November year-to-date level on record.
John Kirby has been a part of the Collingwood real estate scene for many years. He is currently a Sales Representative, Advisor with Engel & Völkers Collingwood Muskoka and feels demand will continue to be strong in 2018.
“2018 promises to be another interesting year for real estate in South Georgian Bay communities. The demand will still be strong because of two reasons; firstly low interest rates will continue, (although expect the Bank of Canada to raise its benchmark rate during the year); and secondly, this area is still the prime retirement/semi-retirement/four seasons recreation area in Ontario so new residents will continue the trek north.
Kirby says the main issue to temper real estate growth this year will be the new stress tests for borrowers.
“These will definitely impact first time buyers which will in turn, affect current home owners who wish to “move up” in the market (larger home, lot, etc.), resulting in fewer listings. The rental market will continue to have low vacancy rates as would-be buyers will be forced to “pass the stress test!” This will be good news for investors in residential real estate for rental purposes.
Therefore, my crystal ball predicts that prices will remain high due to strong demand and low supply.”
In nearby Barrie, the situation is similar as far as demand is concerned but prices are stable.
Geoff Halford is the President of the Barrie and District Association of Realtors. He told CTV News at 6 on Thursday January 4th that people are coming back into the market, feeling comfortable to make a purchase again.
New home construction continues at a feverish pace at the Shipyards in Collingwood
From the Southern Georgian Bay Association of Realtors November Press Release
The Southern Georgian Bay Association of REALTORS® comprises two distinctive markets. Home sales in the Western Region, which includes Wasaga Beach, Clearview Township, Collingwood, The Blue Mountains, Municipality of Meaford and part of Grey Highlands fell 18.2% on a year-over-year basis to 121 units in November 2017. Year-to-date home sales in the Western Region numbered 1,901 units, down 16.1% from this time last year.
Meanwhile, home sales in the Eastern Region, encompassing the Towns of Midland and Penetanguishene, the Townships of Tay and Tiny and part of Georgian Bay Township, totaled 68 units in November. This stood 17.1% below November 2016. Year-to-date home sales in the Eastern Region numbered 1,096 units, sitting 17.3% below the first 11 months of last year.
“Activity has been more or less stable at fairly average levels for about six months now,” said Stan Reljic, President of the Southern Georgian Bay Association of REALTORS®. “Even so, with inventories still near all-time lows the market is still very tight, the normalization of demand notwithstanding.”
The number of new residential listings in November 2017 was 236 units, down 3.7% from a year earlier. This was the lowest reading for this month in almost three decades.
Overall supply remains near record lows. There were just 587 active residential listings on the Association’s MLS® System at the end of November 2017, edging up just 0.2% from year-ago levels and one of the lowest level since the early 1990s.
Stan Reljic is the President of the Southern Georgian Bay Association of Realtors
Town of Collingwood Monthly Building Permit Summary – December 2017
# Permits Issued: 23
Total Construction Value: $2,228,000
Total Building Permit Fees: $16,326
# of New Dwelling Units Created: 2
# of Demolition Permits Issued: 1
# of Sign Permits Issued: 1
# of Septic System Permits Issued: 1
# of Heritage Permits Issued: 4
Town of Collingwood Development Charges Collected: $45,354
Simcoe County Development Charges Collected: $17,442
Education Levy Collected: $3,518
Drainage Deposits Collected: 0
Cash-in-lieu of Parkland: N/A
Construction Water Fee: $130
Black Ash Creek Development Charge Collected: N/A