After robust sales in 2020, 2021 & a brisk start to 2022, MLS® condominium sales in the Southern Georgian Bay area have softened, due largely to higher interest rates and inflationary pressures.
June 2023 Year-To-Date (YTD) MLS® condo sales of 171 units are 37 fewer than 208 units sold YTD in 2022, a decrease of 18%.
2023 YTD MLS® condo sales dollar volume of $116.4 million is 24% less than $152.4 million in 2022 and $91.0 million or 44% less than sales during the 1st six months of 2021.
NOTE: This data includes the municipalities of Clearview, Collingwood, Grey Highlands, Meaford Blue Mountains, Wasaga Beach. Sales of new condos made by developers which are substantial have not had a negative impact on the re-sale condo market and will in fact drive them higher over time.
From a pricing standpoint, area condominium sales are largely concentrated in the $300,000 to $799,000 price segments. Year-to-date sales in those segments represent 68% of the total market. As shown in the chart below, sales between $300,000 to $499,999 are up 21% to 52 sales whereas sales from $500,000 to $799,999 are down 29% from this time last year with 65 unit sales compared to 92 this time last year.,
The MLS® median sale price for condo units had been rising steadily in recent years but with weaker sales especially in the upper price ranges, the June YTD 2023 median price has decreased from a 5 year high of $647,900 this time last year ago to $585,200, a drop of 10%. That is not to suggest that all prices dropped 10% but prices overall are clearly not increasing. The increase in the median sale price over the past few years was largely due to the types of condos being sold. Today’s Buyers many purchasing for full time use want larger units with garages, basements & high-end finishes.
Currently, Collingwood has the highest median sale price at $757,700 followed by the Blue Mountains at $633,600. No units have sold this year in Grey Highlands hence the median sale price there is zero. See chart below.
NOTE: The median sale price is the mid-point in pricing of all units sold year-to-date whereas average sale price is determined by dividing total sales dollars by the number of units sold. This can change dramatically on a month-to-month basis.
Condominium sales remain concentrated in the Blue Mountains & Collingwood. YTD these two municipalities represent 90% of the market with Wasaga Beach coming in at just under 5% in terms of the total number of units sold through the MLS® System.
As of this report there are currently 95 condo units listed for sale on the MLS® System of the Lakelands Association of REALTORS® compared to 98 this time in 2022. Condominium units currently listed for sale on the MLS® System are priced from $275,000 to $1.489 million.
The 2023 YTD median days-on-market (DOM) for condos to sell is 45 compared to the median DOM of 31 days at the end of the 1st Quarter 2023
Based on the rate of sales in 2023 there is overall, currently 100 days of inventory on the local MLS® System.
The purchase of a condominium cannot be taken lightly. Inflation is having an impact on us all & this is sure to affect condominium corporation’s operating budgets/expenses & subsequently on the condo fees paid by owners for maintenance, repairs etc.
Further, many municipalities across the province are looking at restrictions on short term rentals, those of less than 30 consecutive days. This is going to have an impact on some condo buyers & perhaps current owners that wish or do rent their units out to help offset ownership costs. As always, I encourage both current owners as well as potential buyers to obtain qualified legal or accounting advice in this regard.
Condominiums remain an attractive purchase for many & we will no doubt see a modest increase in sales activity towards the end of the summer heading into the next ski season. With higher interest rates, inflation & a possible recession, the market is bound to remain softer in 2023 than what we saw in 2020, 2021 and 2022
If you have questions about a condo sale or purchase my experience can assist you in determining how the current market may impact your selling or buying decisions. rcrouch@sothebysrealty.ca