Prince Edward County Real Estate Market Update – March 2016

Though you would never know it, spring has arrived to Prince Edward County (“the County”), and in stark contrast to the temperature, the real estate market is heating up. For the third month in a row and building on a trend that was already being experienced last year in the County as discussed in earlier reports, one of the predominant characteristics defining the market in the County is a shortage of listings.

This results in limited choice and frustrated buyers chasing dwindling inventory and being forced to compete, or at the very least be ready to pounce when desirable properties reflecting good value do come onto the market. This dynamic has been further exaggerated by the increased attention which the County has received in the press and media, and all of the influx of new investment and activity to the area. One other factor which should not be overlooked is the comparative affordability of the County compared to other rural and vacation markets served by the brokerage, as well as the frenetic and increasingly unaffordable cost of housing in the Greater Toronto Area for those forced or choosing to contemplate alternative or different living arrangements and live/work solutions.

1317 COUNTY ROAD 3 RD, AMELIASBURGH WARD | $1,495,000

According to the Enhanced Statistics Statistical Query Report for the County for the month of March derived from the Quinte & District Association of REALTORS® (“the Quinte Board”), property sales in the wards making up the County were up 20% year over year with 42 sales being recorded compared to 35 in March of last year. Year to date figures are flat with 83 properties being recorded as sold mirroring exactly the tally reached by this time last year. With the strong demand, it is reasonable to conclude that the main thing holding back sales year to date is simply the ongoing lack of inventory alluded to above with 22% fewer active listings being available in the County at the end of March this year compared to last, specifically 429 v. 554 at the time the reports were issued. As indicated, this is the third month in a row where this has been the case, and the two more listings coming out this March compared to March 2015 (139 compared to 137) will do little to alleviate the shortage of supply. The year to date figures for new listings tell the story. So far only 328 properties have come onto the market compared to 387 last year at this time, a 15% drop.

2 JOHNSON ST, PRINCE EDWARD COUNTY, PICTON WARD | $915,000

Not surprisingly, in a tight market properties do not hang around on the market as long, and with fewer expired listings and many of the staler listings already snapped up, the average days on market for the current batch of properties sold in the County this last March is down 12% from last year at this time, with this particular cross-section of properties taking on average 104 days to sell, compared to the 118 days recorded for the properties sold in March 2015.

Despite the strong market, average sale price in March remained relatively stable, coming in at $299,750 compared to $307,259 recorded last year in March, an unremarkable decline of 2%. Needless to say, March remains a quieter month for real estate in the County, with the higher season kicking in more in April and May with the advent of warmer temperatures and the launch of many of the activities and offerings for which the area is known prompting the influx of visitors, weekenders, vacationers, tourists and the like.

1146 COUNTY ROAD 14 , PRINCE EDWARD COUNTY, SOPHIASBURGH WARD | $349,000

Activity across the broader Quinte Board is consistent with what is being experienced in the County with the watchwords being an ongoing tight market bookended by strong demand (sales up 27% year over year in March and 17% on a year to date basis) and a scarcity of supply (new listings down by 4% year over year in March and 8% on a year to date basis, with expired listings down by a whopping 37% in March).

When spring actually does arrive in earnest, look for a robust market fueled by strong demand, and hope for an uptick in new listings to replenish supply and give all those buyers something to look at and consider for purchase. Economic reports for the first quarter of 2016 are looking favourable with significant growth forecast for the gross domestic product and recent positive job numbers. That mixed with continuing low interest rates and little prospect of significant change in that regard for the foreseeable future, as well as the ongoing comparative affordability of properties in the County suggests that the real estate market in 2016 should be a very healthy and active one moving in to the rest of the year.