Unit sales of single family residential homes jumped 46% in August compared to last year’s August results. According to MLS® system reports of the Niagara Association of REALTORS® there were 19 sales in Pelham during the month of August 2011 up significantly from the 13 sales reported in August 2010.
However, year-to-date sales activity continues to lag behind the 2010 level. As of the end of August, 125 homes have sold this year compared to the 143 that sold between January and August last year – representing an overall market decline of 12.6%.
These local trends are consistent with results across Niagara. In our neighbouring City of Welland monthly sales results jumped a whopping 40.7% while year-to-date activity is 7% shy of last year’s totals. The figures for all of Niagara indicate an increase of 26.7 for August 2011 compared to August 2010 and an overall drop of 5.3% year-to-date.
In the local Welland/Pelham area we are beginning to notice a rise in inventory levels with 12% more new listings this year in Pelham and a marginal increase of 0.8% inWelland. It is not surprising, therefore, that the average price in both communities is now falling compared to last year.
In Pelham, the 12 month average sale price in August 2011 was $329.246 – a decline of 1.1% from the August 2010 level of $332,932. In Welland the August 2011, 12 month average price was $176,866, down 0.7% from last year’s $178,053.
Expect market conditions to remain tight for the balance of the year. It will be an important indicator if September sales results follow the August pattern of out pacing 2010 levels. Should the annual growth in new listings continue to be greater than our level of annual sales growth, downward pressure on average prices is inevitable.
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Categories: Real Estate Market Update