2013 Northumberland Market Update

It’s a new year in Northumberland and it has brought some truly Canadian weather! Fortunately, the market has started to heat up despite the temperatures staying rather cool. But before we can start to forecast what this year’s Real Estate Market will bring, it’s time to look back over the ups and downs of the past 10 years and the 2013 market with my annual real estate market update.

Below you'll find the average value of properties according to the Northumberland’s Hills Association of Realtors 10 year statistics. Since 2004 residential property values have rose by 36% making an average appreciation of value of 4% a year. The market in the past year has bounced back better than anticipated from the slight dip we saw in 2012, in 2013 the average property value increased 9%, which is the highest annual appreciation we've seen in the last 10 years.

When it comes to the overall health of the real estate market it’s also important to factor in the volume of sales. The volume of sales has decreased by 12% since 2004. Notably, over the past year the overall volume of residential sales decreased by 6.5%.

An important factor to keep in mind when it comes to average value of properties is that in a smaller market and volume of sales such as Northumberland, the data is subject to more fluctuation by something as simple as a few higher end sales or lack thereof. For example in 2013, we saw a lower number of sales under $220,000 range which decreased in 2013 by 21%. This is a price range typically driven by the first-time buyer market. It’s reasonable to assume that the lower interest rates over the past few years have pulled many first-time buyers forward, as seen in the increase in volume of sales of 9% in 2012, thus leaving fewer first-time buyers in the market in 2013. Given first time buyers are often seen as the driving force in the real estate market, it is reasonable to assume this pull forward has contributed to the 6.5% decrease in sales volume.

Overall, the market in Northumberland continues to stay steady and strong. Last year saw the highest appreciation in value in the past 10 years of 9% as well as the listing to sales ratio of 60% meaning a balanced market that can be both beneficial for sellers and buyers.

An important caution is when looking at this data not to assume the value of your home is necessarily in line with the overall market data. Homes in our area vary a great deal in overall appreciation based on location, size, and style as real estate is supply vs. demand.

Whether you're considering selling or just wanting to stay informed of the value of your investment, I’m always happy to provide a complementary market assessments please contact anytime at pennington.remax@gmail.com

Information based on sales statistics from the Northumberland Hills Association of Realtors 2004-2013 sales data as interpreted by Jacqueline Pennington. The opinions expressed in this blog are solely those of Jacqueline Pennington and do not represent those of the Northumberland Hills Association of Realtors or RE/MAX Lakeshore.

Copyright © 2014 Jacqueline Pennington. All rights reserved.