The end of August is traditionally associated with the end of summer holidays, and the hot, lazy days of leisure associated with it, and Labour Day of course portends back to school and the workaday routine of the fall. For Prince Edward County (“the County”) however, the transition is a gentler one with hot steamy weather moderating into the more temperate autumn conditions and morphing into the golden harvest season for which the County is so well known.   So as activities move from swimming and lolling on the beach, dining al fresco, or strolling down main street with an ice cream cone, to visiting wineries, fall fairs, roadside farm stalls and country walks and drives to take in the fall colours, there is little reason for interest in the County to wane or for activity to diminish. Rather the area’s attractions and attributes continue to act as a compelling draw right through the latter part of the year, accordingly the strong activity in the real estate market that we have seen over the last few months should continue unabated for some time. PEC Real Estate Market Update

 

For the month of August, the Enhanced Statistics Statistical Report compiled by the Quinte and District Association of REALTORS® (“the Quinte Board”) revealed that property sales within the County wards continue to surpass the strong pace set last year with 66 properties changing hands, 3% more than last year when 64 properties were reported sold. By our calculation based on the Quinte Board’s Enhanced Statistics Statistical Reports used as the basis for this report, August’s numbers bring the year to date total for the County to 464 which is 14% higher than the number recorded at this time one year ago when 408 were reported as sold.

 

  August PEC Market Report

9 MARY AVE AVE, PRINCE EDWARD COUNTY, WELLINGTON – $400,000

 

Consistent with the trend throughout most of this year,the most significant story is the scarcity of listings and thus shortage of real estate inventory to choose from, making the ongoing sales pace all the more remarkable. Once again, new listings were down year over year with only 81 properties coming onto the market in August compared to 91 one year ago at this time, an 11% drop. This brings the year to date tally to 944 listings, 18% fewer than the 1158 which had been recorded by this time last year. Combined with the strong pace of sales, inventory is inevitably tight and the numbers back that up. At the time of the Quinte Board’s Enhanced Statistics Statistical Report for the County wards used as the basis for this report, there were only 450 active listings at the end of August, which calculates into a 31% decline from the number of properties on the market at the end of August 2015, which was reported to be 655. As indicated, with so little on the market it really is noteworthy that the pace of sales has kept up with last year’s performance, let alone surpassed it. It really is a testament to the strong market conditions, and enduring interest and perceived value in County real estate.   The hot market means that properties that do become available tend to sell faster, thus resulting in a 7% drop in the average days on market for properties selling in the County in August 2016 compared to August 2015, 86 days in 2016 compared to 92 last August to be specific.

 

august PEC market report update

1146 COUNTY ROAD 14 RD, SOPHIASBURGH WARD – $325,000

 

  Finally, and consistent with economic forces, the combination of strong demand with limited supply tends to push prices higher. And this is in fact occurring, though a strong case can still be made that County properties continue to represent excellent value when compared to similar properties in comparable areas. The average sale price of properties which sold in the County in August came in at $350,153, a 5% increase over the year previous when the average sale price for properties sold in August 2015 was recorded as $333,964.   As indicated, there is nothing on the horizon to suggest any change in current market conditions. The Canadian economy, while still performing unevenly and experiencing sporadic and somewhat lackluster results remains relatively stable, while the American economy appears to be gathering more steam and performing well on the whole, racking up impressive employment results. This may bode well for further recovery in the domestic export market, but in any event the cost of borrowing will in all likelihood remain at historic lows for the foreseeable future, and barring any unexpected shocks or disruptions, the general prospects for the County real estate market appear to be very positive.  

Prepared by: Richard Stewart Vice President & Legal Counsel

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