Local Market Slows Down in August

Unit sales of residential properties dropped off 26% in August compared to last year’s August results. According to MLS® system reports of the Niagara Association of REALTORS® there were 14 sales in Pelham during the month of August 2012 down from the total of 19 sales reported in August 2011.

On a more positive note, year-to-date sales activity remains ahead of last year. Since January 1st there have been 140 homes sold compared to 135 between January and August last year – representing an overall increase of 3.6 % .

Similar monthly results were reported in our neighbouring City of Welland. With August 2012 total sales of 66 units, the month ended 26% shy of last year’s total of 89 transactions recorded in August 2011.

However, unlike the situation in Pelham, market activity in the Rose City is also lagging behind 2011 year-to-date. So far this year there have been 534 sales reported in Welland – 6.6 % fewer than the 569 units sold between January – August 2011.

In Pelham the 12 month average sale price in August 2012 was $317,149 – a slight decline of .04% from the August 2010 level of $318,592. In Welland the August 2011, 12 month average price was $186,889, up 4.9% from last year’s $178,121.

Market conditions are anticipated to remain tight for the balance of the year. It will be an important indicator if September sales results follow the August slowdown. Should this slide continue, you can expect downward pressure on average price levels across Niagara.

This article is part of the “Real Estate View” series of columns that Cathy Berkhout-Bosse writes for the Pelham News. You may read past columns here on our www.NiagaraRealtySourceReport.com BLOG.

Categories: Real Estate Market Update

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