Prince Edward County Market Snapshot â January to March 2017
Prince Edward County Market Snapshot – January to March 2017 While the County began to feel the impact of the soaring Toronto real estate market two years ago, local real estate is now fully caught up in the effects of the Toronto frenzy. With demand at record levels and listings at all-time low levels, houses are selling faster than ever before and home prices are going up in line with price increases in Toronto. With the County’s market now so dependent on Toronto, the question for buyers becomes “is the Toronto boom sustainable?” If today’s high level of demand for County real estate is, as some would argue, the “new normal”, it will be important to buy quickly to avoid missing out. If, as many financial authorities now warn, the Toronto market is over-valued and due for a correction, then prudence is in order to avoid buying at a price which looks high when the market cools. Whatever the future holds, the County is currently in a strong seller’s market.
110 single family residences sold in Prince Edward County in the first three months of 2017, an increase of 55% compared to first-quarter sales of 71 when averaged over the preceding three years.
© 2017 Treat Hull & Associates Ltd., Brokerage Not intended to solicit anyone under Buyer Representation Agreement with another brokerage.
Prince Edward County
Market Snapshot – January to March 2017
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At the same time as sales grew, listings continued to plummet during the first quarter of 2017, with 190 homes available to purchase at the end of March, compared to an average over the preceding three years of 300 homes. Listings, in other words, are down 47% from the three-year average.
Months of inventory is a widely-used measure of the balance between supply (number of homes listed at end of month) and demand (sales for the month). The growing imbalance of supply and demand was clearly reflected in the months of inventory available for sale, with only 4 months of inventory available at the end of March compared with an average of 13 months for the three preceding years.
Prince Edward County
Market Snapshot – January to March 2017
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Whereas County homes used to take a much longer time to sell, by the end of March, fifty-five percent of homes were selling in 30 days or less, compared with an average of 37% during the preceding 3 years.
The selling-to-listing price ratio is a traditional measure which reflects supply-demand balance. With demand sharply exceeding supply, sellers got almost 98% of listing price on average, up significantly compared to the average during the preceding 3 years.
Prince Edward County
Market Snapshot – January to March 2017
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The is another intuitive measure of the continuing supply/demand imbalance -the percentage of homes selling for asking price or more- which also reflected a strengthening seller’s market.
The percentage of homes selling for asking price or more has been on the increase since 2011-13, when 5-7% of homes at asking price or above, increasing to 6-14% over during 2014-16. In sharp contrast, a record 31% of homes sold for asking price or more in March 2017.
For many years, the average price for a house in Prince Edward County increased only slowly, if at all. Starting in 2015, the impact of growing demand and increasing house prices in Toronto began to be felt in the County. While the average house price at the end of 2014 was $285,301, at the end of the first quarter of 2017 the average price had increased to $441,249. (Care is required with averages because they reflect both changes in product mix and actual appreciation/depreciation in property values.)
Prince Edward County
Market Snapshot – January to March 2017
A comparison of the average house price index for the County and Toronto shows that while there was little impact on the County of increasing Toronto house prices through the end of 2015, average house prices in the County have been increasing at the same rate as Toronto since then.
For further information, contact Treat Hull, Broker of Record, Treat Hull & Associates Ltd., Brokerage at 613503-0027 or [email protected].
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110 single family residences sold in Prince Edward County in the first three months of 2017, an increase of 55% compared to first-quarter sales of 71 when averaged over the preceding three years.
© 2017 Treat Hull & Associates Ltd., Brokerage Not intended to solicit anyone under Buyer Representation Agreement with another brokerage.
Prince Edward County
Market Snapshot – January to March 2017
2
At the same time as sales grew, listings continued to plummet during the first quarter of 2017, with 190 homes available to purchase at the end of March, compared to an average over the preceding three years of 300 homes. Listings, in other words, are down 47% from the three-year average.
Months of inventory is a widely-used measure of the balance between supply (number of homes listed at end of month) and demand (sales for the month). The growing imbalance of supply and demand was clearly reflected in the months of inventory available for sale, with only 4 months of inventory available at the end of March compared with an average of 13 months for the three preceding years.
Prince Edward County
Market Snapshot – January to March 2017
3
Whereas County homes used to take a much longer time to sell, by the end of March, fifty-five percent of homes were selling in 30 days or less, compared with an average of 37% during the preceding 3 years.
The selling-to-listing price ratio is a traditional measure which reflects supply-demand balance. With demand sharply exceeding supply, sellers got almost 98% of listing price on average, up significantly compared to the average during the preceding 3 years.
Prince Edward County
Market Snapshot – January to March 2017
4
The is another intuitive measure of the continuing supply/demand imbalance -the percentage of homes selling for asking price or more- which also reflected a strengthening seller’s market.
The percentage of homes selling for asking price or more has been on the increase since 2011-13, when 5-7% of homes at asking price or above, increasing to 6-14% over during 2014-16. In sharp contrast, a record 31% of homes sold for asking price or more in March 2017.
For many years, the average price for a house in Prince Edward County increased only slowly, if at all. Starting in 2015, the impact of growing demand and increasing house prices in Toronto began to be felt in the County. While the average house price at the end of 2014 was $285,301, at the end of the first quarter of 2017 the average price had increased to $441,249. (Care is required with averages because they reflect both changes in product mix and actual appreciation/depreciation in property values.)
Prince Edward County
Market Snapshot – January to March 2017
A comparison of the average house price index for the County and Toronto shows that while there was little impact on the County of increasing Toronto house prices through the end of 2015, average house prices in the County have been increasing at the same rate as Toronto since then.
For further information, contact Treat Hull, Broker of Record, Treat Hull & Associates Ltd., Brokerage at 613503-0027 or [email protected].
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