Recovery Underway in Welland

Third quarter resale housing activity in Welland climbed 7.9% over the level achieved during the 3rd Quarter in 2008 with a total of 219 unit sales reported compared to 203 during the same period last year. Average price levels have been on the rise in Welland for the second consecutive quarter. The current 12 month average price of $171,080 is a record high for the City of Welland and is up 2.1% from the low of $167,536 recorded in the first quarter of 2009.

Welland market results exceeded the Niagara regional average of a 5.6 % increase in third quarter activity and mirrored the same positive trends that have been reported nationally. 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.

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. During the third quarter of 2009 the number of new listings placed on the market in Welland dropped off 6.2%. There is now a pronounced undersupply of homes for sale in the local area and in many regions across Canada.

As the average price situation continues to improve more sellers are expected to return to the real estate marketplace. Low inventory levels, rebounding consumer confidence and low interest rates should propel the momentum of the third quarter into 2010. Prices will once again start to stabilize as the housing supply becomes more balanced – and so goes the natural ebb and flow of the real estate cycle. What a difference a year can make.

Third quarter resale housing activity in Welland climbed 7.9% over the level achieved during the 3rd Quarter in 2008 with a total of 219 unit sales reported compared to 203 during the same period last year. Average price levels have been on the rise in Welland for the second consecutive quarter. The current 12 month average price of $171,080 is a record high for the City of Welland and is up 2.1% from the low of $167,536 recorded in the first quarter of 2009.

Welland market results exceeded the Niagara regional average of a 5.6 % increase in third quarter activity and mirrored the same positive trends that have been reported nationally. 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.

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. During the third quarter of 2009 the number of new listings placed on the market in Welland dropped off 6.2%. There is now a pronounced undersupply of homes for sale in the local area and in many regions across Canada.

As the average price situation continues to improve more sellers are expected to return to the real estate marketplace. Low inventory levels, rebounding consumer confidence and low interest rates should propel the momentum of the third quarter into 2010. Prices will once again start to stabilize as the housing supply becomes more balanced – and so goes the natural ebb and flow of the real estate cycle. What a difference a year can make.



Categories: Real Estate Market Update

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