In January, February and March Real Estate Sales were ahead of 2009 by 50% for the same period last year. The month of May stopped dead almost all previous sale gains for the year with a 12 % decline. The month of June shows how quickly a 50% increase in sales can fall to 10% year over year. By August we will be lucky to hold onto that number. The reason is quite simple. While all price points, $250K and beyond, were in positive territory, the below $250K was negative and not going anywhere. Sooner or later the lack of interaction from first time buyers and move up buyers was bound to catch up to the rest of the market. This is the real story, not the 50% gain in sales reported by Real Estate Boards and the media. So what's next? Watch for prices to slide back to 2008 levels for a while and lower as we get into the fall. Sellers who are not spectulating on their sale price and asking fair value will receive a favourable response from Buyers. If an exchange of value existe then properties will sell in a reasonable period of time. Otherwise expect to wait or abandon your plans to sell altogether. That of course makes it better for those who wait it out as a smaller selection will be better for them. Next year is not expected to be any better.

Home sales were down in May. Only 50% of homes for sale have sold? Residential property sales recorded through the MLS® System of the Barrie District Association of REALTORS® Inc. were down from year-ago levels for the first time in a year in May 2010. The average price for homes sold via the Association’s MLS® System in the first five months of the year was $278,708. This is an eight per cent difference from the average price of May 2009, and represents the highest average price for this period on record. The Barrie & District Association of REALTORS® cautions that over a period of time, the use of average price information can be useful in establishing trends, but it does not indicate actual prices in widely divergent areas or account for price differentials between geographical areas. "Demand has fallen back following previously stronger sales in March and April,” said Elizabeth Wilson, President of the Barrie and District Association of REALTORS®. Wilson also said “Softer sales combined with gains in new inventory supply are resulting in a more balanced market, which is likely having a cooling effect on prices and sales heading into the second half of the year.” The total dollar value of all home sales amounted to $124.8 million in May 2010, 10 per cent below year-ago levels. Total sales activity in the Barrie region was only 451 units in May, down 12 per cent on a year-over-year basis. The total value of all properties sold in May 2010 was $127.7 million, a decrease of 10 per cent from May 2009. When compared to last year several price categories are in decline with no gains over last year. New listings were up. For a fourth consecutive month in May, although the increase was much smaller than in the previous three months. New residential listings numbered 853 units in May 2010, up five per cent year-over-year. The number of active residential listings on the Association’s MLS® System edged up one per cent on a year-over-year basis to 2,110 units at the end of May 2010. This is the first increase in 13 months. Inventory up. There were 4.8 months of inventory at the end of May 2010, up from 4.1 months one year earlier. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. 40% of all homes sold in 2010 had two or more price reductions. Assumption: More sellers than buyers! Home owners need to take a more aggressive approach to pricing in order to achieve their goal of a sale in 2010. Some information for this post was received from The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members.

Private for sale companies have requested intervention status in the upcoming anti competition hearings against CREA. They have stated that a change in the access to MLS system could reduce or put them out of business. More on this over the next few months