The total number of transactions recorded Canada-wide was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since 2002. The speed and magnitude of the rebound in sales activity to date recently prompted the Canadian Real Estate Association to revise its May 2009 forecasted number of annual transactions. Instead of the 14.7 per cent decline that was projected based on poor 1st quarter results the updated forecast is predicting 2009 totals to be just .4% shy of 2008 levels.
The Town of Pelham continues to be a leader in Niagara regional results posting a 27.7% gain in quarterly unit sales. Total year to date sales in Pelham began to surpass 2008 levels during the month of August with the September year-to-date figure of 171 units representing a 9.6% increase over the total of 156 recorded in 2008. In comparison, third quarter resale housing across the Niagara region increased by an average of 5.6% and year-to-date unit sales lag 7.6% behind 2008 figures.
Average price levels have been on the rise in Pelham for the third consecutive quarter. The current 12 month average price of $300,154 is up 1.68% from the low of $298,817 recorded in the fourth quarter of 2008 and is 3.9% below the fourth quarter 2007 high of $312,314. New listings have been edging down from record levels, with many sellers taking their home off the market pending an improvement in housing market conditions. There is now a pronounced undersupply of homes for sale in the local area and in many regions across Canada.
Low inventory levels, rebounding consumer confidence and low interest rates are combining to drive up average price levels. The improving price scenario will in turn coax more Sellers to return to the real estate marketplace. Expect listing levels to rebound once again in 2010 and so goes the natural ebb and flow of the real estate cycle.
Categories: Real Estate Market Update