2014 has come to and end, and it’s time to reflect on the year. Curious to know how the real estate market performed versus prior years, I ran the numbers (sourced from the Annapolis Valley Real Estate Board MLS® & the Canadian Real Estate Association). First, let’s take a look at a good indicator of overall market health, Total Number of Sales:
This chart shows year-to-date number of sales for 2012 through to 2014 across the Annapolis Valley (roughly Digby to Windsor). We are seeing a downward trend; the number of sales has decreased over 15%.
Not so rosy. So let’s take a look at another indicator of market performance, Total Sales Dollar Volume:
Another downward trend, on par with total number of units sold. As before, we compare 2014 against the previous two years, and find ourselves off over 16%.
Bad news right? Not necessarily. Here’s where things get interesting: the Average Sale Price of a property in the Annapolis Valley remains relatively stable, having decreased only about 1% over the past 2 years!
What’s going on here? We have lower sales volume (i.e., fewer people looking and/or taking action), yet buyers are still paying prices in line with years gone by. Does this mean we’re headed for a pricing correction? Not so fast.
These trends suggest that even when buyers have more selection and less competition from their peers, they will still pay for quality. Factors such as overall condition, location, and general “move-in readiness” apparently trump the desire to spend less. This is a very important consideration for both buyers and sellers.
Sellers: you have more competition than in years past. Inventory is high, and buyers more scarce. As always, pricing competitively is critical (this will help attract more buyers into your home); however, once they’re in, the condition and presentation of your home is just as important.
Buyers: current conditions make purchasing a property very favourable this year. Lots of selection, less competition, low interest rates and competitive sellers are the key ingredients for a “buyer’s market,” through and through. Despite this, it’s important to balance your desires against risk tolerance – things could indeed head lower. Thankfully, markets are usually cyclical as suggested by the old adage, “buy low, sell high!”
Regardless of your position – best of luck with your real estate goals, and remember that expert advice is only a phone call away. I’m always on at (902) 840-3999.