The Pelham real estate market demonstrated remarkable resilience in 2012— with home sales up 6.6%.
Total residential sales in Pelham reached 209 units compared to the total of 196 reported last year. Interestingly enough, last year’s total is the exact same level as recorded in 2009 and 2010. With 403 new listings posted in 2012, our local sales-to-new-listing ratio of 51.9% is solidly in the middle of the balanced territory range of 40% to 60%.
Average prices, however, are on the decline. The 12 month average price as at December 31, 2012 stood at $320,685 – 1.7% below the 2011 figure of $326,362.
Market trends in our local area are reflecting the demographic housing shift that is occurring across Canada. Now, with baby boomers becoming such a disproportionate part of the population, there is a shift towards lower priced condos and townhomes representing a larger share of the housing mix.
In 2012, multi-family residential sales represented a 12% share of the market compared to 10% in 2011 – expect this trend to continue. Lower demand for larger, 2 storey family homes will continue to place strain on resale values in this segment.
This past month, the Canadian Real Estate Association (CREA) lowered its 2013 national forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations. CREA projects that national sales activity will recede by two per cent in the coming year.
The RE/MAX 2012 Housing Market Outlook released in December 2012 suggests that stability will be the characteristic of Canadian real estate in the new year, with sales above or on par with 2012 levels in the majority of market areas.
One thing is for sure, the days of rapidly rising average annual prices are expected to become a distant memory.
This article is part of our Realty View Column published in the Pelham News . You may read past columns at here on our Niagara Realty Source BLOG www.NiagaraRealtySourceReport.com
Categories: Real Estate Market Update