Volume Rebound of Homes for Sale in Keswick

Homes for sale in Keswick South experienced a strong rebound in April of 2016. Keswick North also usurped Sutton & Jackson’s Point as the second-highest volume real estate neighbourhood in Georgina. This volume rebound of home sales in Keswick has consolidated its strength to set precedence within the Georgina real estate market. A total of 150 homes sold in Georgina in April 2016:

7 home sold in Baldwin
1 home sold in Belhaven
15 homes sold in Historic Lakeshore Communities
32 homes sold in Keswick North
57 homes sold in Keswick South
9 homes sold in Pefferlaw
27 homes sold in Sutton & Jackson’s Point
2 homes sold in Virginia

Average Price of a home in Georgina blows past $500,000

The average price of a home in Georgina increased substantially from $456,662 in April 2016 to $530,335 in May 2016, outlining the larger and more prominent role that Georgina real estate plays in the regional economy of York Region and the Greater Toronto Area.

This increase in average price has occurred as a result of excess demand and limited supply, pushing an increasing majority of homes for sale into higher price ranges and multiple offer situations. Based on the swift increase over the $500,000 average price point, we can expect that the annual average price of real estate in Georgina will fall over $500,000.

Growing High/Low Price Gap on Houses for Sale in Georgina

Georgina’s higher-end real estate market seems to be making its presence known in the spring market, as lakefront buyers begin to emerge with the summer closing in. An increasing number of homes in the $1m+ range have been seen transacting in most lakefront communities in Georgina, moving the high end of the price range further and further above the average and median price in the area.

This tells us that Georgina’s real estate market is beginning to more accurately reflect other markets within the GTA, settling into a more income-restrictive average price and low-end market, with a flourishing luxury real estate market in Georgina. This is beginning to push buyers in lower price points into markets outside of Georgina and to areas like Virginia within Georgina, where the high-low split parallels average.

Increasing demand for larger homes in Georgina

With many families making the move within the spring market to time closings around the summer and school year, larger homes are the most popular real estate transaction in Georgina during this time.

Because of this demand factor, the real estate market in Georgina could be relatively inflated, with average price serving as a representation of a specific asset category or buyer group, rather than the real estate market in its entirety.

Persistently Low inventory of homes for sale in Georgina

Despite reaching a record number of transactions and a record price point, there is a clear excess demand in the market, with an increasing average number of offers on properties listed for sale in Georgina.

This reality, among a host of other demand factors, give us the indication that the Georgina real estate market is underprepared to properly cope with the demand it is currently faced with. The recently opened new home supply pipeline is relieving a good portion of this demand, but new home sales and new residential developments continue to sell at record rates, and demand for resale homes continues to push house prices in Georgina even higher.

Without any indication of any upcoming systemic changes to the Canadian economy, and monetary and fiscal policy, we expect this trend to continue indefinitely until said changes occur.

Strong Presence of Foreign Real Estate Investment in Georgina

Foreign investment is beginning to play a larger role in the real estate market in, demonstrating the strength and quality of real estate investment in Georgina, and the municipality’s growing role in the Greater Toronto Area’s regional economy. This translates to increased demand in the following areas:

Lakeside and Waterfront properties: buyers with southern GTA real estate demand are often coming to Georgina for luxurious appeal and natural heritage.
Subdivision homes: subdivision homes for sale in Georgina deliver immense advantages to buyers, with newer and higher quality supply, larger lots, and lower traffic.
Rural properties: buyers from outside of Georgina have expressed a keen interest in land banking, and capitalizing on larger property sizes available in the Georgina market.