REAL ESTATE activity continues to pick up in the area with 30 more properties sold for the first six months of this year compared to the same period in 2012.
MLS statistics indicate the 180 properties sold during the first six months of this year had a value of $39.7 million compared to the $29 million for the 150 properties sold for the first six months of 2012.
Half of the 104 single family homes that sold were sold for less than $235,000.
That price point is higher that the $211,733 figure for the first six months of 2012 and substantially more the $208,044 figure for the first six months of 2011.
Terrace Remax principal John Evans did note that listings are down compared to last year, a sign that people are staying because of better economic conditions and are not leaving.
At the same time, more people are arriving and buying homes which then reduces the number on the market, he said.
“And we are going to need new stock,” Evans said. “I predict within a year we’re going to see a shortage.”
Still, said Evans, at least for now, it is cheaper to buy than it is to build.
“Prices still have to rise for there to be a heavy demand for new construction,” he said.
“Right now for $350,000 you can buy a very nice house in a nice neighbourhood that’s 20 years old. To rebuild that very same house, it will cost you $450,000. Right now, someone may not be prepared to pay that premium.”
“But if that price rises to $400,000, than the premium is $50,000 and people would then build,” said Evans.
On average it took 58 days for a single family home to sell in the first six months of this year.