Several clients have asked me about the impact of the slowdown in Toronto on the real estate market here in Prince Edward County. Even as the Toronto market has started to cool during May in the face of the measures announced by the Wynne government last month, the sales frenzy in Prince Edward County real estate has increased.
According to the Toronto Real Estate Board, the number of homes sold there fell 14% in May while the average price of homes sold fell by 7% from April to May.
In contrast, the number of detached homes sold in the County during May rose 10% compared with April, while the median price of home sold increased 9%.
In the most striking sign that euphoria continues to reign in Prince Edward County, the proportion of homes selling over asking price increased by 35% from April to May.
The question remains whether and how fast the County market will start to weaken if there is a protracted downturn in Toronto.