Planners Update 2011

Planners Part 4 - Town of Wasaga Beach: Nathan Wukasch, Planner

Nathan noted that there are 80 active development applications in Wasaga Beach, and added that many are driven by retirees. He stated that on average, 300-350 dwelling unit permits are issued per year. He noted that medium and high density growth has been significant. The development map is online.

He told us that the new firehall is being built, as well as a new library and several development projects are underway. New rules have been proposed around Bed and Breakfast establishments.

Strategic Planning: Wasaga Beach is developing a Special Events Strategy, Parks, Facilities and Recreation Master Plan, and Active Transit Plan and they are in the process of updating their Official Plan.

He drew our attention to the Beach Area 1 & 2 Visioning Exercise, where “over the past six months, the consulting team has been working in conjunction with a steering committee comprised of members of Council, businesses owners, local residents and Town staff. The purpose of the project is to establish a long term vision for the future development of the private and municipally held lands in the area of Beach Areas One and Two and enhance tourism opportunities; while ensuring continued public access to the beach. Input and ideas from the community has played a key role in the overall project.” Although the final report is not complete, some of the ideas coming forth from this visioning are: a festival square, realignment of Mosley St., continuous boardwalk, pedestrian bridges across the river, riverwalk, treed continuous promenade, indoor family attractions.

Nathan commented that the province has legislated that 2nd units will be allowed in all single family homes – municipalities need to decide on implementation.

Wind Power – none proposed in Wasaga Beach

Business Park – close to intersection of Highway 26 and Mosley in early stages of marketing.

Wasaga Beach has 11 family doctors and a community health centre – recruitment continues to be a priority.

Wasaga Beach now has fully accessible transit with 2 buses, 7 days per week and now a transit link to Collingwood 6 days per week 6-9 a.m. and 3-7 p.m.

Related Posts:

Part 1:  Meaford
Part 2: Blue Mountains
Part 3:  Collingwood

• Check out the Ice Sculpture Festival from December 27 – 31 in Downtown Collingwood  PS.  There is free parking Downtown now until January 1st, 2012

• Go Bowling in Collingwood or Meaford

• Rewind and rejuvenate at the Scandinave Spa

• Try out the new Ridge Runner Mountain Coaster at Blue

• Go to an arcade in Creemore

• Go skating of course!

• Head on Over to Rounds Ranch Pardner!

• Play Paintball or Laser Tag in Wasaga Beach

If by some miracle the snow should decide to fall, here are a few more ideas:

• How about a snowshoe tour?  

• Cross-country, snowshoe or hike along the trails and across the suspension bridge at  Scenic Caves 

• Rent a snowmobile for an hour or a day

• Take the family Dog Sledding in Rob Roy!

Do you have some favourite ideas to share?  Please add your comments and let everyone else know too.

The principal buildings in Beach Area 1 including such landmarks as the The Dard, Bananas, the Giant Tiger plaza, the old hotel at the corner of Mosley and Old Mosley and many of the stores along the beachfront are all part of a real estate deal expected to close this November.  The properties have been in receivership with back taxes and utilities owing.  According to news reports, the Buyer is related to the a Concord based business called the Belrock Construction Company which is owned by the Grossi family.  Enzo Grossi was the owner of the Dard before he sold it to the Levys who eventually lost the property in the power of sale process.

Wasaga Beach has engaged in an extensive visioning process over the past summer with some very exciting results emerging.  The Grossis were involved in that process and hopefully have a clear sense of the direction residents wish to see for the area.

Other big news in the Beach includes an announcement by the developer of the east end Stonebridge project that he is pursuing the development of an eight-storey, branded hotel-condominium project.

Observations for the month of July:

• For the first time since February 2011, sales for the month were up over 2010 levels with 9% more sales (175 versus 160 in July 2010)
• All of the gain was in the Town of Collingwood where the number of sales were up 15.1% over July 2010.  Meaford continues to struggle this year with sales down 24% and in Grey Highlands, they wer down 19%.  All other areas were down less than 5%.
• The 12 month average residential sale price was up in each area of the Georgian Triangle by 5-10% over this time last year
• The number of new listings for the month was up 12% over July 2010 while the number of expired listings were down by 2%
• Of the 175 sales posted in July, 145 were residential sales with 70 being priced from $150,000 – $249,999, 51 from $250,000 – $499,999 and 15 were over $500,000.
• The YTD sales to listing ratio is strongest in Collingwood at 45% suggesting reasonably balanced market conditions
• The average residential sale price, YTD in the Georgian Triangle was $321,726.
• At the end of the month, there were 2525 active listings for sale.

The chart below shows Year To Date data for all areas included in the Georgian Triangle Real Estate Board Area. 

Today, the service operates on 2 continuous over lapping loops with a bus transfer system and each direction operates on a 30 minute cycle. This service begins at 7am and runs until 7pm, 7 days a week. A transfer system is available allowing passengers to transfer between routes without paying an additional fare if they do so within a 45 minute time period.

This year, the councils of the Town of Wasaga Beach and the Town of Collingwood approved a link connection between their respective services dependent upon County Funding. The good news is that in late June, the County approved the funds and the home is that the prgram can be in place by August.

Click here for more detailed information on Wasaga Transit routes, fares and schedules.

In the month of June, there were 196 sales including 173 residential sales (single family homes, condominiums, manufactured homes), 11 farms, 10 parcels of vacant land and 2 commercial sales.  The majority of residential sales activity was concentrated in the $150,000 to $250,000 price ranges.

Statistics generally mean very little when looked in isolation from other comparative data.  This month, I thought it may be helpful to give some context to our data by looking back over the last five years.  Note that 2007 was the peak year that broke all previous records and, 2009 data most strongly reflected the 08/09 recession.

Key Points:

• There is a strong supply of listing inventory
• Sales have been relatively stable but not robust.  While sales are down from 2010, last year included sales created by pent-up demand from the ’09 “recession.”
• Upper tier sales (anything over 500,000 is generally in the top 10% of the local market place) continue to be strong following the trend that began last year.  This suggests continued interest in our local market from high net-worth individuals who are benefitting from recovering stock market portfolios, substantial equity gains and, are in many cases approaching retirement.

Taking a closer look, below is a chart isolating residential sales only in the six key areas of the Georgian Triangle Market.

Key Points:

• Generally speaking, it is a buyer’s market in most areas of the Georgian Triangle with the exception being the Town of Collingwood where more balanced market conditions currently exist.
• The 12 month average residential sale price is up in all of the key areas and most notably in Collingwood and Blue Mountain.  This figure represents an average sale price – not a median therefore, the numbers are higher due to the increase in upper tier sales in those two markets.
• Over-all, the average price is up about 10% in the last five years
• Over one-third of all sales in the Collingwood and Blue Mountain areas were condominiums

I’m certainly hearing lots of REALTORS® express some concern about the market being a little slow.  Many properties are sitting on the market longer and we are seeing lots of price reductions coming through.  Less than 1 in 3 properties listed for sale sells during the listing period yet, some properties are experiencing multiple offers and quick sales.

Sellers need to be sharp with their pencils as pricing is the single most important factor in getting a home sold.  Buyers also have high expectations and lots of choice so having homes in tip-top condition and in good showing form, is increasingly important.

Buyers have the luxury right now of ample choice and low interest rates.  Prices are not dropping but rates will inevitably climb so buyers are well advised to get into the market but with attention to value and affordability.

I was previewing a property for a client in the Wasaga Country Life development today.  This is a Parkbridge project and they are the largest owner and operator of land lease communities in the country.  This particular development has a range of mixed uses including cottages, RV’s, modular homes as well as seasonal and permanent homes spread over many acres in Wasaga’s far east end.  The property offers a large number of recreational activities for tenants.  There are several ponds and trails in a wooded setting just about a five to ten minute walk to the Beach.

Everywhere I went, people were laughing, hugging and chatting; just like in their ads.  Kids and teens were playing on the mini golf course, senior residents were in and out of the recreation hall and neighbours were all chatting in the middle of the narrow roads of the gated section of the community. I heard one woman welcome back a resident telling him they missed him while he was away.  I met a couple who just sold their modular home this past spring in order to move closer to their kids in the GTA.  Turns out they regret the decision and now want to move back.  I met another gentleman who said he wakes up every morning feeling blessed and thrilled to live there.

The darling wooden cabins looked well occupied by guests but there was almost no sound except laughter.  The grounds were beautifully kept, the trees and flowers were in bloom and the fountains in the ponds even looked happy.  Where or where was the stress?  I couldn’t find it.  This must be the real Pleasantville.

Maybe I’ll live here some day.  I’m smiling just thinking about it.

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The issue is making the news here in the Georgian Triangle over two particular cases: one in Wasaga Beach and one in the Town of Blue Mountains.
 
As reported in the Toronto Star and various radio newscasts such as 680 News last week, the issue has arisen because a couple of homeowners were issued notices of zoning violation from the Town. Fines for a first offence can be as high as $25,000.00. According to the report, the Town responded to complaints about short term rentals taking place in homes designated for residential use.  The Mayor of Wasaga Beach stated that the Town only acts based on complaints but when one is made, they have an obligation to enforce the existing municipal zoning laws.

It’s true that for many years, homeowners in Wasaga Beach and many other communities in our area, have made a practice of renting out their properties to tourists for a week-end, week or short period of time to help in covering the carrying costs of what is often a second home or investment property.  I myself get close to a dozen enquiries each and every month from potential buyers hoping to do just that.  The practice is so common that they are not hidden but boldly advertised on cottage rental or classified sites and on signs.

Last year, the Town of Blue Mountains decided to pass a defining by-law addressing this very issue which is covered in more detail on a previous blog post. The decision of the Town was appealed by the owner of a local rental company and while the OMB hearing is over, a decision on that case has not yet been issued.

So back to the question – SHOULD this practice be allowed?  Some people argue that it is an unreasonable crackdown that will stop families, who have rented cottages for many years, from returning to the Beach and that it is an “out-dated by-law that will put the nail in the coffin to our tourist industry.”  They argue that if the issue is one of noise, then the Town should enforce noise by-laws instead.

On the other side of the issue, there are commercially zoned cottage courts, motels and such that pay higher tax rates and generate a living by providing accommodation to visitors.  They would argue that it is not fair to allow these types of uses in residentially zoned homes.  There are also homeowners living in subdivisions who have an expectation when they buy a home that they will not be dealing with ever-changing neighbours or homes in the area that are being operated with a commercial use.

My own opinion is that the time for the public to object to policy is when it is written – not when it is enforced.  Official plans and zoning by-laws are updated and, the public always has opportunities to press for change through the democratic process.  If they didn’t do it then, don’t try to do it when the Town is put in the position of enforcing a valid by-law.  If my neighbours start running a hotel of sorts next door, I’ll quite possibly be complaining to our by-law department and demanding enforcement.  What choice would the Town have at that point?  None.  None whatsoever.

That’s what I think.  What do you think?

Here we are with a whole new year ahead and the best way to make sense of it is to look back.  I’ve done some number crunching and charting based on data from the Georgian Triangle Real Estate Board MLS® system for our review.  First a reminder; statistics can be deceiving as extreme highs or lows quickly shift average values and relatively small sampling sizes mislead us however, they are an indicator worth examining to get a general sense of where the market is at.

Below is a chart summarizing sales activity and prices in the 6 key market areas of the Georgian Triangle.  This year, I decided to add in a couple of variables to show you how data quickly changes when these are applied.  In one scenario, I’ve shown you the overall average, single family home sale price for a community.  Note, this is an average, not a median price.  Our real estate board only captures the average price data.  Secondly, I’ve shown you how the figures change when values below $100,000 or over $1,000,000 are taken out of the equation.  Thirdly, I’ve shown you what happens when we only look at properties under ½ an acre in size which often are more concentrated in-town versus rural. 

Here is another telling chart which shows you the number of sales in the Georgian Triangle over-all in various price bands this year compared to last.

COMMENTS:
You can see that the number of sales of properties priced below $250,000 has declined whereas every single price band over than has increased.  I would suggest this is a reflection of reduced supply and higher property values as opposed to pure demand.

The most active price ranges were from $150,000 to $300,000 representing 52% of all sales.

Almost 10% of total sales were priced over $500,000 which we would refer to the upper tier in our market.  The number of properties sold in this category increased by almost 45% over the previous year reflecting the trend we saw in urban centres where high-priced properties continued to sell through-out the year.

As of December 31st, there were 1592 active listing on the Georgian Triangle Real Estate Board MLS® system – almost exactly the same as 2009.

TRENDS:
While the total number of listings and sales were higher at the end of 2010 then they were in 2009, most of these increases occurred between January- May.  In every month since then, the number of sales each month dropped below 2009 levels.  While sales levels have slowed, prices have not declined.  Speaking of prices, we cannot say for sure how values have changed over the last year because averages do not tell us that answer.  If I look at properties sold a year ago, I would say the values are relatively the same.  There are pockets where we’ve seen increases however, on average, prices do not seem to have increased in a significant sense and neither have they declined.

At the end of the year, the sales-to-listing ration (number of sales divided by the number of listings) was at 31.45% and just slightly below 2009 levels.  This means that roughly 1 in 3 properties sells.  (Don’t panic.  In boom times, the ration rarely rises above 52%).  Either way, there is some balance in the market giving buyers more time and choices while sellers need to be competitive in order to realize a sale.

So what can we expect for 2011?  My guess is that it will mirror 2010 in almost every regard with continued stability favouring buyers somewhat, very small price increases and no big shocks or changes.  There is continued strength in the high-end market, we see continued interest from investors wanting to buy in our area and, we are seeing more and more newer Canadians who have immigrated in the last decade now discovering the beautiful area we call home here in Southern Georgian Bay.  I am however, watching  the price of oil and the strong value of our dollar with some concern.  Our recovery is tenuous.  There is a need to increase interest rates and a misstep by the Bank of Canada in this area could trigger a decline in sales levels.  So far, they’ve walked the perfect line it seems and if that continues, together with continued recovery in other North American markets, we should expect a stable year ahead.

Collingwood Arts & Culture Calendar
Georgian Bay area events listings
Wasaga Beach Events
Blue Mountains Community Events
Blue Mountain Resort and Village
Meaford Events
Clearview Community Events

Have You Started Your Shopping Yet? I hope we will all make a special effort to support our local merchants in each of our wonderful towns in south Georgian Bay.

Collingwood merchants and mycollingwood.ca have also teamed up for a unique Christmas promotion:  Get Your Stocking Stuffed Downtown.  Check out the great offerings and online magazine.