Tagged ‘prince edward county real estate‘

Prince Edward County Real Estate Market Update – Year End 2018

With the first few days of 2019 under our belt, we can now look back and see what an interesting and tumultuous year 2018 has been for the real estate market in Prince Edward County (“the County”). There is no question that this last year has definitely been a year of adjustment following the correction that occurred in the spring and summer of 2017 with the introduction of the Ontario Fair Housing Plan and related messaging from the provincial government that the overheated real estate market needed to be reined in. Moreover, subsequent contributing factors including a series of successive interest rate hikes and the imposition of the stress test which significantly tightened qualification requirements for financing had a marked impact on affordability, and combined to throw cold water onto the market, and restore a sober sense of reality to both buyers and sellers. Having said that, while sales are down across the County, much like most other real estate markets in Southern Ontario, the intricacies of the market are a little more complex and nuanced as buyer demand has remained remarkably strong and steadfast in the County as reflected by the impressively robust sale price trajectory that has continued to break new bounds and set new thresholds throughout the year.

The statistics published by the Quinte & District Association of REALTORS® (“the Quinte Board”) for December are further confirmation that 2018 marked a return to reality from the frenzied market experienced the preceding year, and to some extent can be characterized by regrouping, adjustment and taking stock. Sales were down over 46% from last year with only 15 properties changing hands compared to 28 in December 2017. With the year at an end, a compilation of the sales numbers for each month as reported by the Quinte Board shows that sales of properties across the County for all of 2018 totalled 532 which is 19% fewer than sold in 2017, the year previous. Clearly, that demonstrates a moderation in the market year over year, and is confirmation that the market correction that occurred in urban centres such as the Greater Toronto Area and neighbouring markets clearly had an impact on the County, but interestingly as suggested other market indicators qualify this conclusion or are evidence of ongoing strength and sustainability in the area.

Listings, for instance, remained in relatively short supply and there was little sign of distress selling in the market, or a rush to unload real estate in the County. Despite a year-end boost in listings with 60 properties coming onto the market in December compared to 35 last year in the same month, year over year there was only a 5% increase in new listings in 2018 with a total of 1240 compared to 1181 in 2017 when supply and inventory were remarkably tight. With the decline in sales, however, year-end inventory was up with 382 properties in the County available for sale compared to 207 last year at this time.

But price is probably one of the most interesting indicators as to the state of the County real estate market and stands as confirmation of stable interest and demand in the County. There was a dip in the average sale price in December coming in at $282,800 compared to $418,996 last year, constituting a drop of over 32%, but as discussed in previous market reports, in a smaller market like the County where only 15 properties changed hands, the particular cross-section of properties that sold in a given month inevitably has a disproportionate impact on the numbers, and results in larger statistical swings. When spread over the entire year, however, a clearer picture comes into focus. Despite a slower start to the year when three out of the four months of the first quarter registered a negative year over year price differential, each of the successive months for the rest of the year, (with the exception of December), racked up impressive price gains. This contributed to a boost in the annual average sale price of over 11%. Specifically, the average sale price for properties in the County for 2018, calculated on the basis of the average sale price reported for each month by the Quinte Board, came in at $422,732 compared to $379,445 for 2017.

Finally, those properties that did sell took only three days longer on average to sell (70 compared to 67) than they did last year when market conditions were much more heated and frenetic, and supply was even tighter.

All of these indicators taken together suggest that despite some calming and moderation over the last year, the County real estate market is stable and has legs going into 2019. Broader economic conditions continue to be generally favourable with positive economic output and job creation over the end of last year and extending into the new one. While the cost of borrowing is likely to continue to increase over the long term, (though potentially not as quickly as earlier anticipated), the County is well positioned to weather potential market upheaval given its relative affordability, and its status as a preferred destination to live and invest.

Prince Edward County Real Estate Market Update – November 2017

According to the statistics published by the Quinte & District Association of REALTORS® (“the Quinte Board”), the fall performance of the real estate market in Prince Edward County (“the County”) continues its moderating and balancing trend, following several paces behind the experience of its neighbouring urban markets. In other words, and in general terms, inventory is going up and sales are declining, but in the face of all that, and unlike the Greater Toronto Area, properties continue to sell at a swifter pace than a year previous, and average sale prices continue to exceed those recorded last year, though at a somewhat smaller percentage. As indicated in earlier reports, properties in the County continue to be in demand, but with the increase in the number of available listings, and slowing pace in neighbouring markets, the sense of urgency has left buyers who apparently feel that they have more choice, can take more time to consider their options, and wait for the right property to come along instead of pouncing on the first property that crosses their path.


Prince edward county market report november 2017
According to the Enhanced Statistics Statistical Query Report published by the Quinte Board for the wards that make up the County, 41 properties sold in November, three fewer than in October consistent with seasonal trends, and 18 fewer than the year previous, marking almost a 31% decline. Year to date sales are down only 6% given the very active market experienced earlier in the year, with 609 sales being recorded thus far compared to 651 at this time last year.
There was only one more new listing in November 2017 than one year ago when 66 properties came onto the market. Year to date, the County still trails last year’s numbers marginally with 1158 new listings compared to 1186 by this time in 2016. Where the difference is felt, however is in active listings. At month’s end, the Quinte Board reported 300 listings as being available for sale which is 24% more than last year when only 242 were available.
Despite that however, those properties that come onto the market for sale continue to be bought up at a faster pace than last year, continuing a trend that has been established over the last several months in the County. Specifically, properties recorded as sold were only on the market 74 days on average, 4% less time than last year when the average days on market was listed as being 77.
In addition, and as stated, prices just keep going up in the County. The average sale price of properties sold in the month of November came in at $317,461, 7% higher than the same month last year when the average sale price was calculated to be $297,735, a clear indication that demand for property in the County remains strong and that the area continues to benefit from its accessible price point, consistent with the stronger performance of more affordable properties across markets generally, most particularly condominium apartments, in urban centres.
Indeed, as we approach the end of the year and look forward to 2018, affordability will likely be an increasingly influential factor in the performance of the real estate market, particularly as the average Canadian household debt to income ratio sets new records, and is potentially exacerbated by the threat of higher interest rates and ever tightening lending rules imposed by both the government and financial institutions. Rising rates, however, are due in large to the recent strong performance of many of the Canadian economic indicators including job growth and a positive trajectory for the GDP generally, all of which also contribute to inflationary pressures. While instability and uncertainty in the political and economic climate south of the border as well as globally continue to be complicating factors for real estate market forecasting, the economic fundamentals are generally strong and in place for ongoing stability and sustainability in the County real estate market for the end of the year and looking forward to the next.

Prince Edward County Real Estate Market Update – October 2017

With the cooling weather and shorter days of autumn, the pace of the real estate market in Prince Edward County appears to be following suit, and reflecting the moderating trends the Greater Toronto Area (“the GTA”) faced over the summer. While choice and desirable waterfront, character and acreage properties continue to find buyers, the numbers produced by the Quinte & District Association of REALTORS® (“the Quinte Board”) in its Enhanced Statistics Statistical Query Report confirm that while both new listings and inventory are increasing, the urgency of buyers has dissipated, with many holding out until the perfect opportunity comes along. Markets appear to be rebounding in the GTA with both sales and price recovering from the post peak doldrums, just as they have in the Greater Vancouver trading area following the imposition of measures (including the foreign speculators’ tax) intended to reign in the overheated real estate market, but as is often the case, there appears to be a lag of a couple of months in surrounding satellite markets to what is happening in the urban core.


toronto real estate market report October 2017

In October, 44 properties changed hands in the County which is both 7 fewer than the month previous, and 17, or 29% fewer than the 61 which were reported sold the same month in 2016. Overall, notwithstanding the robust pace of sales experienced in the first half of the year, sales year to date now trail last year’s numbers by 4% with a total of 568 sales being reported by months end in October compared with 592 at this time last year.
In addition, the number of new properties coming onto the market in the County increased in October, both as compared with September as well as the year previous. A total of 89 properties were reported as new listings which is 27% more than the 70 that came out in October 2016, and brings the number of new listings year to date to 1091 which, based on the earlier shortage of properties is still 3% behind last year’s figures at this time when 1120 new listings were reported. That, combined with the decline of sales inevitably has an impact on inventory. Not surprisingly active listings were also up 19% with 345 active listings being reported as available at month’s end compared to 290 last year at the same time.
Despite that, and perhaps due to the prolonged shortage of desirable properties available to buy in the County for so long, the average days on market continues to be lower than last year with the average property selling in 70 days compared to 74 one year ago.
Consistent with the comments at the outset of this report that desirable properties continue to find buyers, and confirmation that there is still strong demand for the right property (even if buyers are being pickier), the average sale price continues to go up, and not insignificantly. In fact, those properties that did sell, did so for 24% more than they did last year with the average sale price coming in at a very respectable $365,619 compared to $294,402 in October 2016. Any suggestion therefore that properties in the County have in any way lost their luster, or that there is a broader slackening of demand is misplaced. Rather, under the circumstances, and given what has happened in nearby urban markets, a sense of measure and sanity appears to have returned to the market, where qualified and interested buyers are simply less inclined to pay whatever it takes to get a foothold in the market and are instead, and as indicated, prepared to wait for the right property to come along and act decisively at that point.
Reports confirm that urban markets, both locally as well as across Canada are returning to a more bullish track, with Toronto in particular, being in the early stages of same as its suburban market continues to lag. But it is still too early to tell what the impact of further tightening in lending criteria with the imposition of broader stress tests to conventional mortgages will be. Some speculate that it could prompt a brief surge in activity as buyers try to lock in prior to the imposition of the more stringent financial qualification requirements. Generally speaking, however, the broader economic outlook appears positive with indicators generally strong despite the ongoing threat of potentially destabilizing caveats on the international stage with respect to trade and protectionism, amongst other influences.