On a percentage basis this level is 66% higher than the low of 6 units sold in the November immediately following the financial crisis experienced in the Fall of 2008. Current results are running 40% below the peak level average of 16 sales recorded during November 2006 and 2007.
November also marks the first month that the 12 month average price of single family homes in Pelham has dropped since July 2009. The November 2010 12 month average price of $324,095 represents a 1% decline form the October 2010 month end figure of $327,339.
Our local average price results is following two months behind national trends. According to the Teranet-National Bank Composite House Price Index Canadian house prices fell 1.1 percent during the month of September, the first decline since April 2009.
Year-to-date sales in Pelham currently lag 4% below 2009 with 191 sales as of the end of November compared to 199 last year. It is interesting to note that the number of new listings on the market is also trending downward.
There have been 388 new listings so far this year – 4.7% fewer than the 407 accumulative lisitngs between January –November 2009. The net impact is that despite the reduction in sales activity the pace his still higher than the number of new listings coming on the market. In Pelham, there were 153 homes on the market at the end of November – 4 less than the total of 157 at the end of October.
Supply and demand are now relatively balanced leading to an overall moderation in price growth. As we enter into the seasonally slower demand cycle expect this stabilization to continue provided inventory levels do not start to rise disproportionately.
Categories: Real Estate Market Update