The early Spring thaw in Pelham has brought with it tentative signs of improvement in the local real estate market. As the 1st Quarter of 2009 drew to a close the 12 month average sale price of $296,804 increased slightly over the 2008 year end result of $295,179.
This is the first quarter since the 2007 year end when the 12 month average sale price has not declined suggesting that the local housing prices may have reached a point of stabilization. The current average price level represents an overall price drop of approximately 5% compared to the peak level of $312,813 achieved in the 4th quarter of 2007.
Year to date residential single family sales now total 27 units- a 32.5% decline from the 40 sales generated during the 1st quarter 2008. 113 new listings were placed on the market between January and the end of March 2009 representing a 20% increase over the total of 94 single family homes listed during the 1st quarter of 2008.
The increased inventory levels combined with low consumer confidence ratings continues to lengthen the average time on the market. The market is moving but it feels more like a snail crawling up a very slippery slope compared to the pace we recall in our rapidly fading memories of the recent economic boom.
However, consumers are collectively showing signs of finally taking off these retrospective glasses and adapting to the realities of current market conditions. The Consumer Confidence Index in the first quarter of 2009 was up from the previous quarter, when the Conference Board of Canada’s consumer confidence index for Ontario fell to its lowest point since the early 1990s. There is new hope on the horizon. Hurray for Spring!
Categories: Real Estate Market Update