Luxury Home and Condominium Sales up 36% in 2014

 Once again luxury home and condominium properties were very much in demand during 2014 although there was a shift in activity in terms of pricing with an increased emphasis on properties under $1 million.

  For discussion purposes,  we consider luxury properties in our market to be anything that is priced over $750,000.  In 2014 there were 79 sales reported through the MLS® system of the Southern Georgian Bay Association of REALTORS® (SGBAR) an increase of 36% over the 58 sales reported in 2013.  The bulk of this increase in sales activity took place in the $800,000 to $999,999 price segment.  Sales between $800,000 and $899,999 were double the prior year with 20 sales in 2014 versus 10 in 2013.  Sales of properties valued between $900,000 and $999,999 were up 80% with 18 sales reported in 2014 compared to 10 in 2013.

  At the extreme upper end of the market, sales over $1.5 million in 2014 remained unchanged with 9 MLS® sales reported in both 2013 and 2014.  Sales between $1 and $1.499 million increased a respectable 53% with 23 sales last year compared to 15 in 2013.  These numbers clearly reflect that for whatever reason, there were significantly more upper end buyers looking for something in our market under $1 million while the over $1 million market posted more modest growth. 

  The Blue Mountains is clearly the municipality of choice when it comes to luxury, high-end properties. While upper-end MLS® sales in the Blue Mountains were off slightly last year with 30 properties sold compared to 31 in 2013, overall sales in this municipality still represents well over 33% of the $750,000 and up sales in our market.  Without question, many of these buyers are members of the area's private ski clubs and their preference is to be located close to those clubs, the Village at Blue and the conveniences found in Collingwood.

  Not all upper end property types and or locations reflected a strong demand in 2014.  In my next posting I will highlight some of those areas where sales remain soft and what you need to be aware of. 

For a summary of the overall real estate market inb 2014 see my Live Play - Georgian Bay blog

Year-To-Date Upper End Home Sales by Area

As per my prior post, upper end home sales across southern Georgian Bay have remained very robust throughout 2014.  To the end of October, MLS® sales for homes and condominiums priced above $750,000 total 66 units to the end of October compared to 47 in the first ten months of 2013 an increase of 40%.

  The bulk of these upper end MLS® sales (63 units) reside in the municipalities of Clearview, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.  Approximately 38% of these sales are in the Blue Mountains driven by Buyer's desires to be close to the private ski and golf clubs they belong to.

  Inventory of upper end homes remains relatively high.  As of this posting there are 179 active MLS® listings priced above $750,000 which represents about 27 months of inventory.  Over $1 million there are now 98 active MLS® listings.  This is the first time the number of MLS® listings over $1 million has dropped below 100 properties in quite some time.  With 27 MLS® sales year-to-date to the end of October, there remains a three year inventory of MLS® listed properties over $1 million.

  As with other price ranges, correctly pricing an upper end home correctly to attract a Buyer(s) is very important perhaps even more so.  Upper end Buyers are very savvy.  Many have built their own homes in the past.  They know what they want and they know the costs associated with building.  If they don't see both the quality and value in the property listed for sale then securing a Buyer at the price being asked is highly unlikely if at all.

  If you have an upper end property you are thinking of selling or if you are in the market to purchase one, please visit the luxury home page of my personal real estate website to see how my experience in this segment of the market can benefit you. 

Luxury Home Sales Remain Strong in 2014

  With less than two months remaining in 2014, Southern Georgian Bay area real estate is poised for another record year in terms of total MLS® sales activity. 

  MLS® sales through the first ten months of 2014 total $597 million, an increase of 8% over the first 10 months of 2013.  Total MLS® sales volume for all of 2013 totaled just under $625 million, this was the first time MLS® sales had past the $600 million mark and we appeared destined to surpass that amount for 2014.

  To a large degree, the sale of luxury, high-end properties continues to have an impact on total dollar sales in the area as the increase in MLS® dollar volume typically outpaces the annual increase in the number of properties sold.  Year-to-date through the end of October we have seen 82 MLS® sales above $700,000.  As per the accompanying chart, MLS® sales above $1.5 million are running dead even with 2013 with nine sales reported.  Where we are seeing a significant increase in activity is in the $800,000 to $1 million price range.  Year-to-date there have been 32 sales in this price range, double the number from one year ago. MLS® sales between $1 and $1.5 million have also continued to perform very well with 18 sales year-to-date reflecting a 38% increase over the same period last year.  

  The trend among luxury home Buyers leans towards buying smaller in terms of the size of the dwelling but it must have the best of everything including, finishes, technology and energy efficiency.  This chart would seem to reflect this given the level of sales activity we are seeing in smaller well appointed properties in and around the $1 million mark.

  In my next post I will summarize luxury home sales and listing activity in the various municipalities around our area.