UNPRECEDENTED is the best word, even though it is overused, it aptly describes 2020’s housing market, especially real estate in The Blue Mountains. The outlook for 2021 is shaping up to outpace 2020 for housing sales. I can safely say, up here in Southern Georgian Bay, we are in a RED HOT sellers market! No one knows for certain how long this will last… but it looks like it may continue as long as people see themselves working here. They continue to save and invest in housing, inventory remains low and new build permits have halted in Collingwood, Ontario. April 2021 was the best sales month in the history of Canadian home purchases across Canada and Southern Georgian Bay was no exception!
Before I dive into what the causes for this hot real estate market are, I wanted to start by sharing some lingo in lay person’s terms:
A “seller’s market” means there are not enough homes on the market to meet the demand.
A “buyer’s market” is when there are more listings than buyers for properties on the market.
A “balanced market” means neither buyer or seller market.
Now onto the reasons for the HOT seller’s market. No, it is not because Realtors® have underpriced and are causing bidding wars for us to line our pockets!
We have the lowest Bank of Canada’s prime lending rate since 2010, at 2.45%. Canadians are also saving a LOT as they are not traveling, shopping, or going out PERIOD. Many have decided last year and this year is the time to take advantage of the market, to “cash out” of their existing condo or home and upsize to the next home. Many are not staying in their existing market and are choosing “cottage country” over city life. Those who live here in Southern Georgian Bay aren’t in a hurry to list as they have already found their piece of heaven. This lack of inventory is causing a shortage of housing supply. Without enough supply to keep up with the demand, prices will remain competitive through 2021. Coupling this lack of supply with this shifting the way people work, whether remotely or less frequent visits to the office, people are choosing to live in less dense areas. After losing bidding war after bidding war many have turned to new build or pre-construction home sales. This area of home sales has also hit all-time high sales levels in 2020. Traditionally Builders would release 20-30 lots and it would take a few months to sell out…not right now, they are released and sell out in a few weeks! The latest news from Collingwood, the town will not be issuing new build permits so they can deal with water supply issues (a whole other topic). This will also lead to increased demand on area resales or push pre-construction seekers over to the Blue Mountains or Meaford. This author believes the housing market will remain VERY strong through 2021.
Everyone’s haven is home, so when you are looking at buying a house in The Blue Mountains or selling a property in Southern Georgian Bay researching the housing market should be on your to-do list. It is so important to know what is selling in your area, the most recent sales, and what overall trends are happening in the area so that you have full knowledge and are able to set a realistic listing price or realistic purchase price. Local Realtors® can tell you just because the property is listed at 1, 000,000 doesn’t mean it will sell for that, especially if the comparable area solds in the last two weeks is 1,200,000 for a similar home.
Finally, the housing market trend will remain strong because let’s face it … at the end of the day it is all about what lifestyle you want to live. Here in Southern Georgian Bay and The Blue Mountains, we offer a four-season playground: ski the slopes, hike the fabulous trails, swim in the Georgian Bay, canoe, golf, apple pick, sample ciders, shop locally, all this and more! The Blue Mountains has it all and that my dear readers is why this housing market is strong and will remain strong for 2021!
Questions about the Blue Mountain real estate market? Looking for new builds? As a Certified New Home Specialist and your Local Realtor® I would love to answer any questions you may have, contact me today!