July Heat Wave Slows Home Sales

111187651366029526Unit sales of residential properties dropped off 28.6% in July compared to the same month last year. According to MLS® system reports of the Niagara Association of REALTORS® there were 15 sales in Pelham during the month of July 2013 down from the total of 21 sales reported in July 2012.

This the first month so far this year the home sales were slower than our previous year’s level. In fact, sales for the month were significantly lower than the 19 transactions recorded in July 2011 and the total of 18 recorded in July 2010.

The slow down corresponds directly with the heat wave that struck Niagara throughout the first half of the month causing even the most ardent homebuyer to postpone house-hunting activities.

On a more positive note, the pace of year-to-date sales remains firmly ahead of last year. Since January 1st there have been 138 homes sold compared to 124 between January and July last year – representing an overall increase of 9.7 % .

Interestingly enough the weather didn’t seem to impact July sales results in the Rose City. The July 2013 sales total of 66 units in Welland was up slightly from the 64 transactions recorded in July 2012 but lags 26% below the level of 89 sales reported in July 2011.

Year-to-date in Welland, there has been a 12.4% decline in market activity with 410 sales reported so far this year compared to 468 units sold during the January to July time frame last year.

In Pelham the 12 month average sale price in July 2013 was $ $340,216 – a spike of 5.2% from the July 2012 level of $ $323,451. In Welland the July  2012, 12 month average price was $ $184,952, down 0.7% from last year’s $186,195.

The month of August will be an important indicator of sales predictions for the remainder of the year. Should the sales slide continue, you can expect a corresponding cool down in average price growth during the Fall market season.

12monthJuly2013PelhamCHART

This article is part of our Series of “Real Estate View” Columns published  in the Pelham News.

 

 



Categories: Real Estate Market Update

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