The local real estate market is on fire and shows no signs of letting up any time soon.

More than $39 million in sales were made last month alone, shattering any previous monthly record kept by the Sarnia-Lambton Real Estate Board, said president Michelle Timmers.

Sales in May were up 14 per cent over the same period last year and the average sale price this year has skyrocketed to $170,885, up from $156,873 last year.

“I’m floored by this,” Timmers said, admitting she was surprised by the strong numbers.

Although Sarnia’s average sale price has gone up, it still remains modest in comparison to the provincial and national averages, which sit at around $300,000.

Homes priced between $100,000 and $200,000 have been amongst the top sellers, along with homes valued from $240,000 to $500,000.

A remarkably high demand has resulted in competitive bidding and short marketing times, making this a good time for sellers but a frustrating period for buyers.

“For sellers, it’s a spectacular time to put their home on the market,” Timmers said.

She acknowledged many people are wondering if now is the time to sell, or whether they should hold on a while longer for the market to peak.

“Is this the peak time? I wish I could say,” Timmers said. “This market has been unpredictable, but I would say if you’re ready to make a move now, do it.”

The strong housing market is expected to continue throughout 2007 and into 2008. But even then, Timmers said analysts are predicting a “stabilization” of the market rather than a bust.

So what’s behind the hot market?

A shortage in demand, speculative buying and the strong local economy, Timmers said.

“I know the manufacturing sector of Ontario is not expecting the surge that we are locally,” she said.

Other regions, including Windsor and Chatham-Kent, are experiencing increased sales in some areas but declining sales in others. “In Sarnia, we’re not seeing a decrease in any area.”

In fact, all municipalities within Lambton County are sharing in the high demand, including places where sales have historically been slow, like Oil Springs, Warwick and Brooke-Alvinston.

“We’re starting to see those properties move at a fairly quick pace as well,” Timmers said.

While demand for homes has gone up, listings this year to date are down three per cent from the same period last year.

A new home buyer could expect to pay upwards of $280,000 for an entry level bungalow in Sarnia. That same home would sell for about $20,000 less in the city’s bedroom communities.

“In many cases, a few minutes more (of a) drive and you could be into a lovely new home at a much more affordable price.”

information from : www.theobserver.ca

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