State of the Market - Winter 2010
Happy New Years!
I trust you had an enjoyable and relaxing break over the holidays. Personally, I took off the entire two weeks and spent the first half on the island of St. Kitts in the Caribbean. If you like your vacation spots to be less commercialized and a bit more authentic Caribbean experience, I highly recommend this sleepy island in the Lesser Antilles.
Parry Sound becomes somewhat sleepy at this point of the year as well, much like St. Kitts. We received one the most severe December snow storms in memory over a three day period during the second week of the month. Some areas in the Parry Sound and Muskoka area received in excess of 150 centimetres of snow over a three day period, effectively paralyzing transportation, cancelling school buses, and escalating sales of snow blowers, shovels, and other assorted snow removal apparatuses.
Since that storm four weeks ago, Parry Sound hasn't had any major storms and the winter weather has settled to a more predictable pace as the month proceeds along. Area lakes are for the most part, ice covered, but make sure to check on local conditions before venturing out. The Big Sound remains ice free out front of Parry Sound looking towards Killbear Park, and unless we get into a deep freeze, will probably remain that way until at least mid month.
We have received the final numbers from the Parry Sound Real Estate Board for 2009, and they came in where I expected them to. Total sales for the year were down by only three percent from the previous year, or 18 less units sold. Listings were also down, 15 percent less properties were listed on our local MLS in 2009 than were in 2008.
My personal feeling is that we'll see the trends established mid way through 2009 to continue through this year. Sales number began to improve throughout the year and I see no reason why this numbers should continue to strengthen in 2010. Listing inventories should also improve as potential sellers feel more confident about the prospects of putting their properties onto the market. This should also have the effect of moderating any inflationary pressure created by the strengthening demand for properties, effectively holding prices in check. Interest rates should continue at their record low levels, helping to keep financing affordable.
If you have any questions regarding the market, please do not hesitate to contact me anytime.
Happy January,
Jim