A lot of people will say there is nothing for sale. That we in Niagara, specifically St.Catharines, Thorold and Niagara Falls are lacking inventory.
“Its craaaaaaazy out there!” is the common refrain.
Well, in some ways, it is. But here are the BIG 3 important numbers to know for January 1st to August 1st when comparing 2016 v 2015 (according to our local MLS data):
Total Sales Total Days on Market Average Sale Price
Total sales are up by 9.8% to 1,560.
Total days on the market are down by 28.2% to 28.
The average sale price is up by 12.6% to $285,000.
So, that means almost 10% more homes sold in almost ¾ the amount of time for 12.6% more than last year.
Total sales are up by 31% to 1,214.
Total days on the market are down by 6.8% to 54.
The average sale price is up by 20.4% to $312,000
That means that over 30% more homes sold in a bit of a quicker time period for significantly more than the year before.
Something that has to be considered in Niagara Falls is the new construction side of things. So, looking at the same numbers but only for homes 5 years or older (pulling out the new or almost new construction data), the numbers shake out like this:
Total sales are up by 33% to 764.
Total days on the market are up by 30.9% to 29.
The average sale price is up by 15.3% to $287,000.
In other words, homes in Niagara Falls that were built at least 5 years ago took a bit longer to sell this year compared to last but more of them sold (33% more) and for more money.
Total sales are up by 22.6% to 266.
Total days on the market are down by 24% to 40.
The average sale price is up by 16.8% to $278,000.
Similar to the other markets in our neck of the woods, more homes sold for more money in less time. As long as the amounts are trending in healthy amounts, they are great to see in a real estate market that saw 2 or 3% increases for many years in a row.
Now, what is feeding this activity?
One factor is the out of town component which we have seen grow to amounts previously unseen. These out of town buyers are downsizing retirees, young couples, empty nesters, families moving back to Niagara, people from other countries and pretty much every representative of the potential market possible.
The effect that ‘out of market’ buyers have is they increase the demand but offer nothing to the supply chain. In a closed market you have a similar or equal number of buyers and sellers. Granted that is impossible in real estate, but something similar creates balance.
When you have a good proportion of the demand coming from outside of the market, the supply will be consumed quicker and quite often for more money.
Is this our new normal? Only time will tell. In our many years in the real estate industry we know one thing. Every year has a bit of a different flavour. Some years are over supplied, some are flat and relatively boring and some are electric and non-stop.
2016 could easily be described as electric and non-stop.
For help navigating these real estate waters, feel free to reach out to us anytime. We look forward to hearing from you.
Thank-you for visiting.
Sally McGarr Realty Corp., Brokerage
….photo credit to Carlos Muza.