Eureka! The TRUTH About Condo Sales in Collingwood

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Truth bowling ball (2)Every time that I pick up a national newspaper, there are articles about the trend of people purchasing condominiums rather than detached houses. In general, people don’t seem to talk about that here in Collingwood and on the surface, it doesn’t seem like that trend is taking hold here. But wait. Is it?

I know that in my own real estate practice, condos now represent about 50% of my sales each year compared to a tiny percentage even 10 years ago. You know I love stats and the challenge of digging deep to find the nuggets. I did that this morning and, Eureka!

Rather than looking at all condo sales in the area, I decided to look instead at the type of condos people may be more likely to buy to live in on a full-time basis rather than the many sold in our area for part-time and recreational use. My criteria was to look specifically at condos sold on our local MLS® that had 2 or more bedrooms, were over 900 square feet and located in Collingwood. Then I did the exact same comparison for houses. The results are stunning.

The number of condo units sold in this category increased by a whopping 15.4% between 2013 and 2014 compared to an overall increase in the number of single family homes in the same category of just 2.8%.

So there you have it. The trend to buying condos rather than single family homes is finally taking hold in the Collingwood market. This isn’t surprising when you consider the main reasons why people buy condominium units to live in full-time in the first place:

  • Prices for single family homes are unattainable for many first time buyers
  • Investors due to both pricing and lack of worry about property management concerns
  • Retirees who appreciate turn-key living and security if they are travellers/snowbirds
  • People who are looking for a specific amenity they cannot afford otherwise such as a waterfront location, private recreational facilities and marinas

All of these factors and conditions currently exist in our local market. What is interesting is that condo prices of older units have not been appreciating due to the ongoing supply of “new” stock. Those numbers are beginning to decline and it is quite possible that condo corporations who maintain their complexes to a current standard will begin to see price appreciation in the coming years.

Related Post:

A recap of the local condo market in 2014

 

Are You Looking for an Investment Condo in Collingwood?

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Main extAs an investment, this unit located can easily carry itself in full – something we don’t often see any more in the Collingwood area let alone one that has views of the Bay over greenspace and that is located in a gated community with amenities galore. We certainly have a winner here and I’m very certain it will not last long.

The current occupants are AAA+ tenants who have lived in the unit for many years and have kept it in wonderful condition. They would be delighted to stay making this an excellent opportunity for investors or, they will vacate if the new buyer is looking for a personal use condo.

Located in Rupert’s Landing on the west end of Collingwood, this upper level condo has two floors. The master and guest bedrooms are upstairs while the open concept living, dining and kitchen areas are on the main floor. There is a cozy wood-burning fireplace, in-suite laundry, a main floor powder room and a lovely balcony walk-out from the living room plus, there is plenty of storage and parking.

View the full listing here.

Collingwood and Area Real Estate Barometer Jan.16-22, 2015

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialMarket Report Icon
New Listings:  72 (44, 49, 11)
Average List Price: $406,255
Range of List Prices: $155,000 – $1,350,000
Number of Sales:  19 (15, 11, 8 )
Range of Sale Prices: $130,000 – $2,450,000

Condominiums
New Listings:   18 (23, 17, 6)
Average List Price: $292,963
Range of List Prices: $96,900 – $699,000
Number of Sales:   5 (5, 5, 3)
Range of Sale Prices:  $130,000 – $485,000

Vacant Land
New Listings:   16 (24, 12, 3)
Number of Sales: 1 (2)
Range of Sale Prices: $68,000

Price Changes  24

Notables this week:

  • One condo sold for more than it’s list price.  One single family residence sold at it’s list price.
  • Look at the range of sale prices in the Single Family Residential category:  this illustrates the magic of our area – there is something for everyone here.

 

Note: All statistics obtained from the Southern Georgian Bay Association of REALTORS® Real Estate Board

Bank of Canada Lowers Key Interest Rate to 0.75%

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In response to the recent sharp dip in oil prices and the resulting negative impact on growth and inflation, the Bank of Canada announced today that it is lowering its target for the overnight rate to 0.75 percent, a drop of one quarter of one percentage point.  Read the full press release, here.Interest rates flying out

The Bank of Canada website describes the target for the overnight rate as follows:

The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate.

The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or “overnight”) funds among themselves; the Bank sets a target level for that rate. This target for the overnight rate is often referred to as the Bank’s key interest rate or key policy rate.

Changes in the target for the overnight rate influence other interest rates, such as those for consumer loans and mortgages. They can also affect the exchange rate of the Canadian dollar.

 

Town of Collingwood Planning Update: New Developments

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In December, we attended the annual panel of Planners session which is an opportunity for us to interact with municipal staff and planners about local planning initiatives and developments. Today we present the information provided by the Town of Collingwood.

The Official Plan update is needed to comply with the Provincial Growth Management Plan and it is currently sitting at the county. Some of the key items in the plan for Collingwood are that Collingwood currently has a population of about 21000 people with a target by 2031 of 33,400 people and 13,500 jobs. There is also a focus on supporting secondary suites in existing or new housing. For future developments, the intensification policies also support some increased densities.

Collingwood has averaged about 240 new units built per year over the last five years. 2014 is likely to come in below that average.

Plans currently under development: 

- Red Maple  278 unit subdivision on the 10th Line just north of Georgian Meadows. Model home now under construction

– New industrial suites at 100 Pretty River Rd South (by Hume)

– Expansion to Living Waters building on Harbour Street

– Construction of Wyldewood Cove condominiums

– Ongoing planning around Balmoral Village Adult Lifestyle community

– Huntingwood Development potentially 170 townhome units on Hwy 26 east of Silvercreek Dr

Here is the last development uploaded by the Town showing the location of various developments. (Click photo to enlarge)

Development Map April 2014

Related Posts in Planning Series:

Wasaga Beach

Clearview

Collingwood and Area Real Estate Barometer Jan. 9-15, 2015

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialMarket Report Icon
New Listings:  44 (49, 11, 18 )
Average List Price: $509,018
Range of List Prices: $90,000 – $2,595,000
Number of Sales:  15 (11, 8, 14)
Range of Sale Prices: $54,000 – $1,050,000

Condominiums
New Listings:   23 (17, 6, 13)
Average List Price: $267,034
Range of List Prices: $140,400 – $925,000
Number of Sales:   5 (5, 3, 6)
Range of Sale Prices: $138,000 – $235,000

Vacant Land
New Listings:  24 (12, 3, 2)
Number of Sales: 2
Range of Sale Prices: $52,000 – $52,500

Price Changes  17

Notables this week:

  • One single family dwelling sold for more than it’s list price.
  • Look at the range of sale prices in the Single Family Residential category:  this illustrates the magic of our area – there is something for everyone here.

 

Note: All statistics obtained from the Southern Georgian Bay Association of REALTORS® Real Estate Board

Ontario Rent Increase Guidelines for 2015

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Did you know that rent controls were developed in 1975 as a temporary measure?

Here we are 40 years later and the rent control guideline for rent increases in 2015 is 1.6% in Ontario.

Landlords may increase rents once every 12 months for existing tenants and must provide 90 days’ notice of any planned increase.

The prescribed forms for doing so can be found here.

Town of Wasaga Beach Planning Update: What Lies Ahead

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We recently attended the annual Panel of Planners session, which is an opportunity for us to interact with municipal staff and planners about local planning initiatives and developments. Planners or staff attended from the Municipalities of Clearview, Collingwood, Wasaga Beach, The Blue Mountains, Meaford and Grey Highlands.  We will give you a synopsis of each area over the next few weeks.

Today, we are summarizing the presentation made by Nick Ainley of the Town of Wasaga Beach.

  • Wasaga Beach grew 172% during the period 1991 – 2011, which was 3 times the rate of Simcoe County
  • 2011-2014 saw growth of 8% – which averages out to 2.6% annually, so the growth rate is slowing; growth is projected at 2-3% per annum over next 20 years.
  • 29.1% of the population is over 65, and 46.6% is over 55 – aging population
  • They have received bronze designations for walk and bike friendly areas
  • Accessory Apartments: Secondary units are now permitted, subject to certain criteria, as the Zoning Bylaw and Official Plan Amendments are now complete. Click here to view Wasaga Beach’s citizen’s guide to second dwelling units.
  • Focus is on medium density and mixed use development
  • Currently there are 64 projects in development –click here  to see the development map or see below.
  • Of note:  DAS development: 353,000 sq.ft. mall at new Highway 26 and could be the site for a casino.  Casino: RFPQ (Request for Pre-Qualification) currently being assessed – next step will be RFP (Request for Proposals) – probably in 2016.

Wasaga Beach casino

The Town website holds a wealth of information for the public (zoning bylaw, official plan information, housing information) – it just takes a little perseverance to find where on their website to look.  Below is a map of Active Development within the town.WASAGA DEV MAPMy opinion is that Wasaga Beach experienced unprecedented growth in the pre-2011 era, however, that has now settled down into a more manageable growth pattern, mainly in the over 55 age group.  The casino is years in the offing, if in fact Wasaga Beach is chosen as a site for one, and hopefully the amount of jobs it creates will offset any of the associated social problems and costs to the community.  Wasaga Beach has worked hard to overcome the ‘party town’ image over the past decade and it would be a shame to see that effort go to waste. The redevelopment of the tourist destination known as Beach Areas 1 and 2, including pedestrian bridges and promenades, an amphitheatre, continuous boardwalk and festival square, will undoubtedly breathe some much needed new life back into the area, after fire destroyed a good portion of  the area in 2007.   With continued careful planning for these envisioned projects, my bet is on this community for continued stable growth with a revitalized main end.

Related Planning Posts:

Clearview Township Planning Report

 

Collingwood and Area Real Estate Barometer Jan. 2-8, 2015

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialMarket Report Icon
New Listings:  49 (11, 18, 31 )
Average List Price: $469,712
Range of List Prices: $174,900 – 2,595,000
Number of Sales:  11 (8, 14, 15)
Range of Sale Prices: $210,500 – $635,000

Condominiums
New Listings: 17 (6, 13, 8 )
Average List Price: $290,188
Range of List Prices: $92,000 – $1,049,000
Number of Sales:   5 (3, 6, 5)
Range of Sale Prices: $22,500 – $530,000

Vacant Land
New Listings:  12 (3, 2, 4)
Number of Sales: 0
Range of Sale Prices: $0

Price Changes  20

Notables this week:

It may seem like a lot of listings this week, but quite often a large number of listings expire in December in order to renew in January with a new number.  (Our board however, is no longer using that numbering system with the year forming the first 4 digits of the MLS® number.)

 

Note: All statistics obtained from the Southern Georgian Bay Association of REALTORS® Real Estate Board

Five Factors That Will Drive Canadian Mortgage Rates in 2015

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Guest Post by Dave Larock

In today’s post we’ll kick off 2015 by looking at five key factors that will signficantly influence the direction of Canadian fixed and variable mortgage rates in the coming year.

  1. The Strength of the U.S. Recovery

The U.S. economic recovery has recently shown many encouraging signs. Employment is picking up, consumer and business confidence levels are improving, and not surprisingly, spending and investment are on the rise. U.S. GDP growth for the third quarter of 2014 was recently revised upward to a whopping 5%, marking its highest level in eleven years. While fourth quarter GDP growth is expected to fall back to the 2.5% to 3% range, this will still be considered healthy by today’s developed world standards.

Read more, including Dave’s bottom line. 

David Larock is an independent full-time mortgage planner and industry insider. Visit his blog for many more interesting articles and some great mortgage advice. 

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