Despite newspaper reports of a surge in the Toronto real estate, County prices are not affected by the hot Toronto market…at least, not yet.
For example, today’s Globe and Mail online real estate section (available only to subscribers) contains an article by staff reporter Carolyn Ireland under the headline “Toronto’s heated market is rippling outward“.
The article gives examples of how a growing number of Toronto home buyers are making offers significantly over listing price, a practice that was widespread during 2016-17.
According to Ireland, “whether buyers will display the same level of desperation as more listings arrive is hard to predict. The market in 2020 has so far seen scorching competition with dozens of offers on some properties and jaw-dropping premiums above the asking price.”
To the extent that there has been a recent resurgence in Toronto house prices, it hasn’t been reflected in the County yet. For the last 5 years, the average house price in Prince Edward County has increased at an annual rate of 15%.
At least as of January, that trend continues unabated with no detectable spike in prices.
However, although County house prices are not affected by the hot Toronto market yet, experience shows that booms in the Toronto market are ultimately reflected in County prices.