Real Estate Market Update | Collingwood/Southern Georgian Bay, December 2020

Home sales and prices soared in the Western Region of Southern Georgian Bay as the year came to an end.

 

 

In a month where activity usually declines as the holiday season approaches, December 2020 reported an impressive 144 sales vs 103 sales for the same period last year, flaunting a 39.8 % increase year over year. As stated in these monthly reports throughout the year, the pandemic has certainly intensified demand for properties with more space where people can work from home and attend school on line. Working remotely has given many people the opportunity to live where they want, contributing to their ability to purchase more affordable housing outside the Greater Golden Horseshoe (GGH). As a result of these trends, along with historically low interest rates and an increase in the number of sales of higher priced properties, the average sale price in the Western Region was an astonishing $853,220, driven up 45.6 % over last year. The dollar volume for December 2020 skyrocketed 103.5 % over last year. The end of the year saw a slight increase of new listings, up 3.2 % year over year with 128 new listings coming to market in December 2020 compared to 124 last December. The Sales to New Listings Ratio was 112.5, clearly demonstrating that the number of new listings coming to market could not keep up with the demand, and that demand subsequently drove active listings down to a record low of 184 at month’s end in December 2020 from 518 in December 2019, marking a significant 64.5% decrease. Months of Inventory also remained near record lows of 1.3 for December vs 5 months in December 2019. As we reflect on a most unusual year where many records were set, all eyes are on 2021. Many have speculated that the hot housing conditions that we experienced throughout most of the year, (once people had adapted to COVID protocols) would continue into 2021, thanks to trends mentioned in this report including low interest rates, the ongoing lack of housing supply, people working from home and travel restrictions prompting many to purchase vacation properties in the Western Region. On the other hand, the end of mortgage deferrals and government subsidies could prompt further economic disruption which could result in people putting their properties on the market. Any increase in listings could ease the strain on supply and potentially improve affordability. Any definitive prediction at this stage however is impossible given the multiple factors at play.