Price Growth Cooling Off

Brisk sales activity during the month of February has begun to help level off the sluggish start experienced in January 2011. In Pelham, there were 17 single family unit sales compared to 12 during the same month last year, representing a 42 % increase month over month.

January, however, presented a much different picture with 6 sales in 2011 compared to 17 recorded in 2010. The net result year to date indicates that sales are down 21%

The average selling price of a home in Pelham is up three per cent in February compared with the same time period last year. However, when comparing to the 2010 year end average price of $324,843, the February 12 month average price of $323,068 is down .5% suggesting that price growth is cooling off.

The average price for the Niagara Region (not including Grimsby) was $225,636. Across Niagara, the Pelham average price is second only to that of Niagara-on-the-Lake with an average price of $457,993.

According to the 2011 First Quarter CMHC Housing Market Outlook – Canada Edition forecast report released in February by the Canada Mortgage and Housing Corporation, Ontario home prices are expected to grow closer to rate of inflation through the balance of 2011 and into 2012 with markets remaining in a balanced position.

 “Momentum in housing activity should slow in the next year from the volatile pace in recent years as moderate economic growth, fewer first time buyers and rising mortgage carrying costs temper increases in sales and prices,” explains Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.

A report released by the Canadian Real Estate Association (CREA) in February indicated similar expectations for the coming year.  CREA is predicting an overall National price increase of 1.3 per cent in 2011.

 



Categories: Real Estate Market Update

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