Overview: May Sets All-Time Dollar And Unit Sales Records
Although the number of multiple and overprice offer situations slowed from March and April, May set new monthly records despite there still being a shortage of homes on the market.
MLS dollar sales of $145,745,804 were up 11% from April’s record of $131,396,861, and up 28% from last May’s $113,905,659. Unit sales of 315 were up 1% from last May’s record of 313, while listings of 472 were down 11%. Overall, May 2017 had a high 67% sales/listings ratio, and its 52 expired listings were down 54% from one year ago.
Turning now to year-to-date sales, 2017’s record volume of $519,337,021 and units of 1139 are up 34% and 6% respectively from 2016’s previous record pace – all on 16% fewer new listings. Lastly, thanks in part to such an overheated market so far in 2017, the region’s average sale price of $455,959 is up a whopping 26% from the $363,037 of May 2016.
Graph 1: Georgian Triangle MLS® Sales – January-May, 2015 vs 2016 vs 2017 (Dollars)
2017’s record sales, big average sale price increase and high 71% sales/listings ratio indicate that the demand for listings GREATLY exceeds the supply. As we’ve noted for over a year, agents say that sales would be much higher still if there were more homes on the market.
Graph 2: Georgian Triangle MLS® Sales – January-May, 2015 vs 2016 vs 2017 (Units)
The Market In Detail
As Table 1 and Graph 3 show (below), 2017’s year-to-date 6% rise in unit sales over last year is mainly due to increased sales in the high-priced home segments, a development which has also resulted in the region’s 26% jump in the average sale price from May 2016.
And so, while unit sales are down 32% in the high-volume $100K-$299K price range, they’re up significantly in all other ranges. The $300K-$499K range is up 21% from 2016, while the entire $500K+ range is up 75% from 2016. Within that range, the $500K-$799K, $800K-$999K, $1M- $1.999M and $2M+ ranges are up 63%, 75%, 178% and 50% respectively. Even sales in the under $100K price range – which until 2015 generally decreased with each year due to fewer homes being listed at that price – are currently up 8% from 2016. At this point, all regional indicators suggest that the demand for higher-priced homes will continue to increase in 2017.
Graph 3: Georgian Triangle MLS® Sales by Price January to May, 2015 vs 2016 vs 2017 (Units)
Graph 4 shows May’s record dollar sales in perspective, rising well above April’s record and last August’s prior high mark. Similarly, on the units side Graph 5 shows that May’s record topped last May’s previous record, despite there being 61 (or 11%) fewer new listings for sale.
Graph 4: Georgian Triangle MLS® Monthly Sales – 2015 vs 2016 vs 2017 (Dollars)
Graph 5: Georgian Triangle MLS® Monthly Sales – 2015 vs 2016 vs 2017 (Units)
Sales By Property Type
As Graphs 6 and 7 show, 2017’s record pace is reflected in sales by property type. Generally, sales would be even higher if there were more listings, so demand for listings exceeds supply.Graph 6: Georgian Triangle MLS® Sales By Property Type – January-May, 2015 vs 2016 vs 2017 (Dollars)
Graph 6: Georgian Triangle MLS® Sales By Property Type – January-May, 2015 vs 2016 vs 2017 (Dollars)
- Year-to-date dollar sales of $407,561,429 are up 25% from May 2016, while unit sales of 767 are down 5%. The average sale price of $531,371 is up 32%.
- Year-to-date dollar sales of $80,854,204 are up 36% from May 2016, while unit sales of 233 are up 8%. The average sale price of $347,014 is up 26%.
- Year-to-date dollar sales of $38,860,429 are up 143% from May 2016, while unit sales of 191 are up 79%. The average sale price of $203,458 is up 36%.
Graph 7: Georgian MLS® Sales By Property Type – January-May, 2015 vs 2016 vs 2017 (Units)
As Graph 8 shows, 2017’s YTD drop in single-family home sales translates variously into the communities. The Blue Mts. and Meaford are up 43% and 29% respectively from 2016, whileCollingwood, Clearview, Wasaga Beach and Grey Highlands are down 5%, 9%, 14% and 30%.
Graph 8: Georgian Triangle MLS® Single-Family Home Sales – January-May, 2015 vs 2016 vs 2017 (Units)
The incredible real estate ride that we’ve been on in the Georgian Triangle since the spring of 2014 just keeps ascending. May was not only the region’s 38th consecutive record month, but both its dollar and unit sales were all-time highs. Last May our Report celebrated the area’s first $100M+ sales month. And now here were are, just one year later with sales of $145M+, edging ever closer to the $150M milestone.
While May did not include the same number of multiple and overprice offers that we saw earlier this year, its record sales and through-the-skylight price increases – all on fewer new listings – seems to have become the order of the day. Moreover, the consensus among our agents is that the causes are primarily demographic. So the phenomenon could sustain itself for some time barring any unforeseen macroeconomic issues.
The bottomline is that it’s a good time to be a home seller – and home buyer – in this beautiful Georgian Triangle. So we’ll say it again: The demand for listings is HUGE. If you’ve considered selling your home your chances of getting a great price in a very timely manner are excellent.