Upper End MLS® Home Sales Up 42% in 2015

  As in prior years, upper end, luxury home sales continue to play a significant role in driving total MLS® dollar sales throughout the Southern Georgian Bay area in 2015 with sales up 42% over the same time last year.

  

  Through the end of May there have been 40 sales reported though the MLS® system of the Southern Georgian Bay Association of REALTORS® above $750,000 compared to 28 sales in the same period last year.  The Blue Mountains continues to be the hot bed for luxury upper end home sales with most buyers having a strong preference to be located close to Blue Mountain and the area's private ski clubs.  Collingwood, and the Municipalities of Grey Highlands and Meaford are the other three areas where upper end home sales are currently the most prevalent.  Sales in the $800,000 to $900,000 range are the most active this year with 12 sales through the end of May representing a 140% increase over the same period last year.  Sales between $1 and $1.5 million total 9 properties year-to-date up 80% from the 5 sales in the first 5 months of 2014 while sales between $700,000 and $800,000 are up 50% year-to-date

  As with other segments of the market, we have seen a reduction in the number of new MLS® listings coming onto the market for upper end properties.  As of this posting, there are 185 listings currently active on our local MLS® system above $750,000,  This represents approximately 23 months of inventory based on the current rate of sales and clearly illustrates why upper end properties take longer to sell.  By comparison, 100 of the current 185 listings over $750,000 are priced over $1 million.  With $1 million plus sales currently running at a rate of just three per month, the currently inventory level represents 33 month supply of properties to be absorbed in the $1 million plus category.  While recently pricing out a luxury high end waterfront property which I have just listed for sale, I viewed several relevant sales in excess of $1 million and noted that days-on-market for these properties often stretched from 1 to over 3 years.  As such, no where is the element of accurately pricing upper end homes more important.

  In my next post I will talk further about the issue of pricing high end properties in order to attract a willing buyer.