Hello August :)
August is upon us, which often means taking advantage of the last few weeks of summer: holidays, family trips, patio dinners with friends, outdoor activities, and time by Georgian Bay. My brother is getting married this month so I will spend a week in beautiful British Columbia.
This past month, the Southern Georgian Bay/Lakelands West Area, which includes Wasaga Beach, Collingwood, Clearview, The Blue Mountains (Blue Mountain & Thornbury), Meaford, and Grey Highlands, saw sales activity drop by 20% compared to this time last year. However, it was down by 31% in June, which is an improvement.
With weak buyer demand, the number of homes for sale increased by 44% compared to last year, and there are now 7.5 months of inventory year-to-date, which is similar to the previous month. A Buyer's market is 4-6 months worth of inventory, so we are well into a Buyer's Market. That being said, some areas like Collingwood are a little more balanced.
The year-to-date sales activity is the lowest over the past ten years. The July average sale price is down 7.6% from last year, but the year-to-date average sale price is still similar to last year at $850,163.
The Bank of Canada announced a second rate decrease in July, but we have only had two drops compared to the ten increases prior. Buyer confidence has not been significantly impacted. It could take some time for the market to change and balance. Will this fall be the tipping point? Or will it be spring 2025? Further rate decreases are expected, but time will tell. Future announcements for 2024 are September 4, October 23, and December 11.
Eventually, the market will become more balanced, buyer demand will increase, and inventory will decrease. When inventory decreases, prices go up. It is hard to time the market and predict exactly when market conditions will change, but now is a good time for buyers to consider entering the market or for current homeowners to consider moving up the property ladder. Right now, buyers have far more opportunities to negotiate lower prices, and there are more options.
Detailed Market Reports are available for Wasaga Beach, Collingwood, Clearview, The Blue Mountains (Blue Mountain & Thornbury), Meaford, and Grey Highlands. Please reach out if you would like a copy.
All the best,
Lee Ann