Third Quarter 2009 Sales Revenue Up 28% over 2008
The entire third quarter of 2009 (Q3 2009) exhibited continued strong showing and sales activity throughout most of the region, making up for the market’s lack luster performance in the first quarter of the year. As a result, Q3 2009 sales were 122% of Q3 2008 sales, versus what we saw in Q1 2009, which was 62% of Q1 2008 sales and Q2 2009 which was 99% of Q2 2008 sales. As indicated in the monthly sales volume graph, July 2009 was a record-breaking month, showing for the fourth consecutive month an increase in both sales volume and units over 2008.
Historically low mortgage interest rates continued throughout Q3 2009, with the Bank of Canada maintaining its overnight rate at 0.25% and the bank rate unchanged at 0.5%. The next Bank of Canada rate announcement will be October 20th but the Bank of Canada has committed to hold current rates until Q2 2010. Continued low interest rates combined with resurgent consumer confidence, a good selection of properties available from which to choose and stable pricing have many buyers realizing now is the time to buy, with the help of their local REALTOR®.
The number of new real estate listings for the Georgian Triangle Real Estate Board (which includes the municipalities of Collingwood, Wasaga Beach, Clearview, Blue Mountains, Grey Highlands and Meaford) are on par for Q3 2009 at 1537 listings, compared with 1542 listings for the same period in 2008.
June’s upward trend continued into Q3 which saw sales totaling 624 properties change hands, a 22% increase of Q3 in 2008. Q3 sales revenue rose sharply with sales up 28% over the same period last year totaling $167,356,079, driven by increased activity of higher end property sales. As previously forecast at the end of Q2, the combination of the 22% increase in Q3 sales, and Q3 listing activity rivalin g listing activity for the same period last year, has lead us to a more balanced market at quarter end .
YTD sales of $357,793,894 now closely resemble YTD of the first 9 month sales of 2008. We fully anticipate the YTD revenue shortfall of 5.3% will be made up with continued strong sales in Q4 wherein full year results in 2009 should exceed 2008.
For more in depth analysis of a specific municipality, contact me!
Information provided by the Georgian Triangle Real Estate Board, copyright 2009. E&OE.