Since peaking in May 2017, the Prince Edward County real estate market has cooled significantly. Since May, the market had largely returned to historical normal by the end of September (though sales actually fell below the 3-year average during the 3rd quarter). The bottom line: selection is still limited, but buyers face a much more favorable market than earlier this year.
Home sales in the County follow a consistent seasonal pattern, peaking in June, followed by a progressive decline into the winter months. For the first five months of 2017, the number of houses sold was significantly higher than in the previous three years. However, sales have declined since May to the point where monthly sales during the 3rd quarter were below the average level of the previous three years.
Inventory -the number of homes available for sale- continued to track well below historical levels during the 3rd quarter. Choice remained limited for would-be buyers.
Historically, approximately 10% of County homes sold at or above listing price. During the hot seller’s market in the spring that increased to over 40%. As the market cooled after the May peak, the percentage fell back to its normal level where less than 1 in 10 homes sell at or above listing price.
Similarly, after reaching an all-time high in May, the percentage of homes selling in a month or less fell in September back to historical levels for this time of year.
During April and May, an all-time high was reached for the selling-to-listing price ratio with houses selling on average for just over 100% of listing price. Since then, as the market cooled, the selling-to-listing price ratio returned to its historical level of 95 to 96% in September. Buyers can typically expect more bargaining room on price than during the hot spring market.