April 2018- Georgina Market Report Infographic - Capital Mobility Matrix
Thursday May 10th, 2018Share
Subdivisions stopped dead
Contrary to early 2018 trends, the spring market is actually functioning in a very different manner than previous years, with subdivisions losing in performance to unique products.
As mentioned in yesterday’s post, we are seeing a decrease in purchasing in subdivisions. We have returned to a normal price level, but due to the high level of comparable properties available in subdivisions, and the directness of their comparability, vendors are having difficulty accepting the new normal, considering that in subdivisions, it is around 30% lower than last year’s value. As we begin to see realism in list prices and more volume over time in these areas, we anticipate that the pricing will normalize in these areas and actually fill the small amount of room (5-10%) that it has the ability to grow this year. However, with competitive pricing run rampant throughout these areas, there is little consensus among sellers on a microeconomic sale as to what we’re trying to accomplish here. And ultimately, that decision is put in the hands of the buyers, who have made it clear that they’re out to get the best deal available.