This fundamental shift in how and where people want to live and work has certainly driven many families, empty nesters, weekenders, investors and first time buyers to seek a real estate opportunity in the Western Region of Southern Georgian Bay. With most travel plans, weddings and family events on hold for the foreseeable future, the decision for many to re-allocate those funds to purchase a property likely helped push the number of sales in the Western Region up a staggering 70.8 % over July 2019, with 369 sales reported in July vs 216 sales for the same period last year. The dollar volume for July 2020 skyrocketed 110.9% over last July. As a result of this red-hot demand and short supply, the average sale price in the Western Region hit an all time record high of $686,430 in July 2020; up 23.5 % over last year.
Some potential sellers, however, saw the opportunity to strike while the iron was hot, driving new listings up 9.7% to 373 from 340 in July 2019. Nonetheless the Sales to New Listings Ratio was 98.9, up from 63.5 in July 2019, a true indication of ongoing seller’s market conditions. With so many properties selling, active listings were down 36.7 % over last July with 553 properties available vs 874 in July 2019, sending the Months of Inventory plummeting to a record low of 1.5 months.
The extraordinary pace and urgency of the market created conditions reminiscent of the 2017 market frenzy. At that time, the Government intervened with the Fair Housing Plan to cool the market. Currently, government assistance to soften the financial hardships from COVID-19 has created a temporary sense of security however, concern of a second wave of COVID-19, another lockdown and job instability may contribute to an adjustment in the market in the months ahead. For the time being though, pre existing pent up demand combined with exceptionally low inventory and low interest rates remain key factors in price strength and will likely continue over the summer and into the fall, making the Western Region of Southern Georgian Bay a desirable and safe place to invest.