Shortage of Listings

Springtime is Pelham is certainly a magnificent sight to behold. Cherry blossoms iridescent in the glow of the pre-summer sun while the scent of lilacs wafts through our windows, now open, erasing the stale reminiscence of a long, dark winter.

Pelham home buyers have also become entranced by the intoxicating appeal of the change in season. During the month of May 2009 there were 22 re-sale, single family home sales in Pelham representing a 10% increase over last year’s monthly total of 20. The 12 month average sale price shifted down marginally to $302,268 from last years’ mark of $304,778.

This level of sales is consistent with the May 2006 total of 24 units but represents a significant decline from the May total of 35 units achieved during 2007- our most recent peak buying year. It is interesting to note that the 12 month average price in May 2007 was $303,385.  Unit sales may be down but the average price in Pelham has only marginally declined.

Pelham fared significantly better during the month of May than the Region of Niagara generally. The total monthly unit sales figure for Niagara was down 4.4% compared to the previous year – 515 sales in May 2009 compared to 539 units recorded in May 2008.The 12 month average sale price declined from $212,299 to $207,621 representing a 2.2% drop in average price.

The pace of new listings being placed on the market in Pelham has slowed significantly. There were 37 new listings placed on the market in May 2009 compared to 50 in May 2008. An increasingly common buyer complaint is the lack of available stock of quality listings.

Many Buyers say they want to take advantage of the low rates but they have exhausted their search of the current selection and are waiting for new Sellers to come on the market with more reasonable expectations. In the meantime we seem to be finding ourselves caught in the age old conundrum -what comes first the chicken or the egg?

Categories: Home Seller’s Resources, Real Estate Industry, Real Estate Market Update

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