Despite the cold temperatures, the grey skies and otherwise inhospitable weather, the robust real estate market in Prince Edward County (“The County”) shows no sign of abating in the first month of 2017. Rather the trends that were established in 2016 appear to be gathering momentum as we move into the new year, setting the stage for another season of strong demand, limited property supply, and thus a continuation of very tight market conditions. Indeed with the release of the Quinte and District Association of REALTORS® (“the Quinte Board”)’s numbers for January in its Enhanced Statistics Statistical Query Report for the wards that make up the County, it is safe to say that unless there is a significant increase in new listings, and property owners sitting on the fence decide to list their properties for sale, buyers will continue to be frustrated with limited choice and fierce competition for those properties which become available. This will inevitably have an upward pressure on average prices for County real estate, and as indicated, Quinte Board statistics confirm that this is exactly how things are playing out thus far in 2017.

 

As indicated in earlier reports, the smaller sampling of properties that comprise the County real estate market inevitably results in some statistical volatility given the particular make up and cross section of transactions at any given point, however, given the unique and special nature of the area and its characteristics, the reported real estate numbers for the County still give a reasonable indication of trends and market conditions prevailing in the area.
The Quinte Board reports that 30 properties sold in the County in January. That represents a remarkable 43% increase over last year’s numbers which came in at 21 sales in January 2016. This activity occurred despite the fact that new listings were down 17% with only 90 properties coming onto the market compared to 108 last year at this time. As stated, strong demand mixed with limited new supply means tighter inventory, and that is reflected by the significant reduction in active listings available on the market compared to the year previous, specifically a 230rop with 247 properties available compared to 321 last year at this time.
 
Not surprisingly, properties also sold somewhat faster than they did last year with the average days on market moving down from 66 to 64. and prices did in fact go up with the average recorded sale price increasing 17% year over year coming in at $282,777 in contrast to one year ago when it was calculated to be $241,330.
 
 
As also mentioned in earlier reports, while almost an island in geographical terms, the County is not one for the purposes of real estate market trends. Tight market conditions are being experienced across the entire Quinte Board with new listings down 9% in January while sales are up by 11% and total dollar volume is showing a 21% increase over last year’s numbers at this time. These statistical trends are being experienced in most real estate markets across Southern Ontario, and are likely to persist well into the foreseeable future with increasing reports of tight urban markets and surging prices, particularly in the Greater Toronto Area, pushing the limits of affordability and therefore buyers further afield to satellite markets and neighbouring communities to locate and secure affordable housing. Technology, and in some cases growing and increasingly creative work/live commuting options are having an impact on the areas being considered by Buyers, and this is likely one of the factors having an impact on demand in the County real estate market.
 
While there is some tightening in qualification and lending approval requirements, rates remain low and economic conditions continue to be relatively stable supported by positive regional employment reports. In addition, demographic forecasts call for ongoing strong immigration trends for Southern Ontario well into the foreseeable future, all of which should bode well for continuing growth for the County real estate market.
 
Prepared by:Richard Stewart Vice President & Legal Counsel 

 

Despite the cold temperatures, the grey skies and otherwise inhospitable weather, the robust real estate market in Prince Edward County (“The County”) shows no sign of abating in the first month of 2017. Rather the trends that were established in 2016 appear to be gathering momentum as we move into the new year, setting the stage for another season of strong demand, limited property supply, and thus a continuation of very tight market conditions. Indeed with the release of the Quinte and District Association of REALTORS® (“the Quinte Board”)’s numbers for January in its Enhanced Statistics Statistical Query Report for the wards that make up the County, it is safe to say that unless there is a significant increase in new listings, and property owners sitting on the fence decide to list their properties for sale, buyers will continue to be frustrated with limited choice and fierce competition for those properties which become available. This will inevitably have an upward pressure on average prices for County real estate, and as indicated, Quinte Board statistics confirm that this is exactly how things are playing out thus far in 2017.

 

As indicated in earlier reports, the smaller sampling of properties that comprise the County real estate market inevitably results in some statistical volatility given the particular make up and cross section of transactions at any given point, however, given the unique and special nature of the area and its characteristics, the reported real estate numbers for the County still give a reasonable indication of trends and market conditions prevailing in the area.
The Quinte Board reports that 30 properties sold in the County in January. That represents a remarkable 43% increase over last year’s numbers which came in at 21 sales in January 2016. This activity occurred despite the fact that new listings were down 17% with only 90 properties coming onto the market compared to 108 last year at this time. As stated, strong demand mixed with limited new supply means tighter inventory, and that is reflected by the significant reduction in active listings available on the market compared to the year previous, specifically a 230rop with 247 properties available compared to 321 last year at this time.
 
Not surprisingly, properties also sold somewhat faster than they did last year with the average days on market moving down from 66 to 64. and prices did in fact go up with the average recorded sale price increasing 17% year over year coming in at $282,777 in contrast to one year ago when it was calculated to be $241,330.
 
 
As also mentioned in earlier reports, while almost an island in geographical terms, the County is not one for the purposes of real estate market trends. Tight market conditions are being experienced across the entire Quinte Board with new listings down 9% in January while sales are up by 11% and total dollar volume is showing a 21% increase over last year’s numbers at this time. These statistical trends are being experienced in most real estate markets across Southern Ontario, and are likely to persist well into the foreseeable future with increasing reports of tight urban markets and surging prices, particularly in the Greater Toronto Area, pushing the limits of affordability and therefore buyers further afield to satellite markets and neighbouring communities to locate and secure affordable housing. Technology, and in some cases growing and increasingly creative work/live commuting options are having an impact on the areas being considered by Buyers, and this is likely one of the factors having an impact on demand in the County real estate market.
 
While there is some tightening in qualification and lending approval requirements, rates remain low and economic conditions continue to be relatively stable supported by positive regional employment reports. In addition, demographic forecasts call for ongoing strong immigration trends for Southern Ontario well into the foreseeable future, all of which should bode well for continuing growth for the County real estate market.
 
Prepared by:Richard Stewart Vice President & Legal Counsel 
Despite the fact that we have already experienced more than a dusting of snow and the days are increasingly short and the nights seem darker and longer, the vibrant real estate season in Prince Edward County (“the County”) just keeps plowing ahead. In fact based on the statistics released by the Quinte Association of REALTORS® (“the Quinte Board”) for the County in its Enhanced Statistics Statistical Report, November racked up the same number of sales as were recorded in the month of October. Much like the other markets served by this brokerage, the County real estate market continues to be squarely positioned in Sellers’ market territory, whereby conditions favour the Seller given consistent and strong demand matched by a shortage of properties available for sale. And even with wintry conditions in sight, the market shows little sign of letting up any time soon, qualified only by traditional seasonal trends, the absence of which to date is confounding many analysts to the extent that we are not seeing the usual slowdown in the market that is usually expected at this time of year.
 
Specifically, the month of November did indeed report the same number of sales taking place in the County as last month (59), which marked a whopping 59.5% increase over last November’s numbers when only 37 properties were reported as sold. This month’s contribution brought the year to date tally for property sales in the County to 652, which is 17% more than last year at this time when 558 properties had changed hands.
Despite the surge in the number of transactions, only 3 additional properties came on the market this November compared to last, 67 compared to 64 last year to be exact, amounting to only a .5% increase in new listings. Accordingly, so far this year the County’s supply of new listings lags behind last year by 15% with a total of only 1175 properties coming available compared to 1377 at the same time last year. With this obvious disparity in supply and demand it can be no surprise that the number of active listings has fallen dramatically leaving potential buyers with little to choose from and increasing frustration. At month’s end, the Quinte Board Enhanced Statistics Statistical Report indicated only 274 active listings across the County, down by 37% from last year’s numbers at the same time when there were 436 listings reported as available.
With so many potential buyers fighting over so little inventory, it only makes sense that properties that are listed for sale do not hang around for long. This is confirmed by a comparison of the average days on market on a year over year basis. Last year in November properties listed for sale in the County on average took 133 days to sell. This year however, the average days on market for County real estate in November came in at only 75 days which means that on average properties sold 44% faster this year than they did last.
Finally, and keeping in mind that the number of properties for sale and sold in the County represents a relatively small sampling for statistical purposes, and is thus disproportionately affected by the composition and attributes of the particular cross-section of properties sold, the average sale price did in fact go up on a year over year basis, but not by that much. The Quinte Board reported that the average sale price of properties sold in the County in November 2016 was $298,227 which is approximately 2.5% higher than last November’s average sale price of $291,215. Though it is diffcult to assess the significance of these numbers, it is encouraging as far as the County maintaining its reputation as an affordable real estate market, particularly on a comparative basis.
As we approach year end, all indicators point to a remarkably strong finish, contributing to a market that has been consistently strong and tight throughout the year. With the Canadian economy continuing to lag behind that of its neighbour to the south, and showing only patchy and uneven signs of recovery, commentators are predicting a continuation of low interest rates well into the new year, providing ongoing support for the real estate market which, barring unforeseen disruptions, shows little sign of flagging in 2017. The Canadian economy, however, is likely to benefit from the predicted climate of growth and stimulus in the United Sates in the year to come. This should be more good news for the real estate market both in the County and across Southern Ontario, generally.

Prepared by:Richard Stewart Vice President & Legal Counsel  

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