Prince Edward County Real Estate Market Update – July 2017
Posted by Gary Goba on Aug 16, 2017 in Real Estate Market Update
Shifting market conditions continue to be the order of the day, however, Prince Edward County (“the County”) has not recorded the same surge in property listings that urban markets have experienced with sellers rushing to take advantage of what they perceive to be the top of the market. Rather, in the County, market conditions remain tight, with limited choice and inventory of desirable properties to show prospective buyers. While the pace of activity has definitely slowed, new listings continue to be relatively scarce, accordingly there has yet to be any discernible trend of price softening or broader long term malaise in the market. Indeed, overall economic conditions appear to be strong with positive indicators being reported in job creation and general economic output and comparative performance. Many commentators and market observers continue to express the view that the recent calming in the market, particularly in overheated urban centres which has now spilled over into neighbouring recreational and rural markets, is both healthy and necessary for the ongoing sustainability of the market and to address what many perceived to be a genuine affordability crisis.
According to the Quinte and District Association of REALTORS® (“the Quinte Board”)’s Enhanced Statistics Statistical Query Report for July in the County, sales did in fact fall year over year for the second consecutive month with 53 properties reported sold compared to 75 in July 2016. That decline marks a 30% drop in sales. Adding July’s numbers to sales year to date brings the total number for 2017 thus far to 414 compared to 408 properties sold by this time last year. This still constitutes a 1% gain over last year’s figures, highlighting the very robust market experienced earlier in the year.
As indicated, however, new listings too are down coming in 4% behind last year’s pace for July with 118 properties being brought onto the market compared to 123 one year ago. Year to date figures further illustrate this trend showing a 7% deficit in listings thus far compared to last year with a total of 833 properties listed compared to 874 by this point in 2016. With the monthly decline in the pace of sales however, active listings have actually gone up slightly year over year with 447 properties showing as available at month’s end compared to 434 the year previous, a 3% increase. Despite that, and likely due to the chronic lack of inventory experienced for most of this year, those properties that are available tend not to linger on the market for long. In fact, the Quinte Board’s Enhanced Statistics Statistical Query Report indicate that the average days on market fell a remarkable 53% with properties in the County selling on average in only 32 days compared to 75 days last July.
Finally, and while subject to the vagaries of the particular cross section of properties that did sell in the County, the increase in average sale price in July is further evidence of the ongoing strength of the real estate market in the County, as well as the continuing desirability of and demand for properties in this trading area. Specifically, the average sale price of properties sold in the County in the month of July came in at $373,442, 20% higher than July 2016 when it was recorded as $312,391.
While still probably too early to tell, many indicators point to this summer’s moderation or calming in the real estate market as being a temporary pause and necessary recalibration. This appears to be prompted by an extended and unsustainable surge in both sales and property prices which contributed to increasingly strident concerns related to what was perceived to be a frothy and overheated market, bringing with it the very real risk of an abrupt and violent correction. This paired with the fact that debt and affordability issues, particularly in urban centres, were pushing an ever increasing segment of society out of the market, provides further support for the perspective that the market is simply experiencing a healthy and well needed soft landing that will simply contribute to its long term sustainability and viability moving forward
