Belleville Real Estate, Quinte Real Estate, CFB Trenton Real Estate Relocations

Quinte MLS Real Estate Reports

Belleville Real Estate, Quinte Real Estate, CFB Trenton Real Estate Relocations

Quinte and District Real Estate Board Statistics and Information

January 6, 2006

Sales:

Number of units sold for the year 2005 has decreased 1.7% over the year 2004, from 3,893 to 3,825 units.

Dollar volume for the year 2005 has increased 9.4% over 2004, from $ 543,909,655 in 2004 to $595,054,028 in 2005.

Listings:

The number of new listings received in 2005 has increased 2% in comparison to listings received in 2004, going from 7,169 to 7,314.

Average Residential Purchase Price

The 2004, the Average Purchase Price of a residential home in the Quinte area has increased 9.4%, from $142,457. in 2004 to $155,795. in 2005.

PRESIDENT'S COMMENTS

The real estate market continued to sizzle at the Quinte & District Real Estate Board for 2005. Although the number of units sold decreased 1.7% this past year, the dollar volume increased 9.4%. The re-sale housing market results for 2005 are proof of another solid year.

Year-end inventory figures indicate there are more properties available for sale right now than a year ago, giving buyers more choices. The average price continued to climb at a steady pace throughout the year as well, resulting in the reported higher dollar volume of activity. I suspect that prices will level-out at a high plateau - a plateau that is higher than previous peaks in the housing cycle. This transition to a more normal and balanced market is a good thing.

We had a real combination of low interest rates, strong employment and overall consumer confidence that came together to create excellent market conditions in 2005.

The Canadian Real Estate Association is predicting that the residential market will remain hot in 2006 because of our strong economy, therefore helping to offset rising interest rates. Their prediction is that if we see a cooling off, it will be in the second half of the year. Although we may see a slight easing of listings going through the Multiple Listing Service (MLS), transactions should still reach their third-highest annual record in 2006.

The Bank of Canada raised their lending rate three times last year. If the Bank of Canada does decide to raise its overnight lending rate again this month (as predicted) only mild pressure is expected. Most financial institutions passed the 2005 increases onto their customers, boosting five-year mortgage rates a half percentage point to the current 6.3 per cent from 5.8 per cent last July. Buying a home is still within reach for the average Canadian even with these moderate increases.

A strong resource sector is currently boosting Canada's overall economy so as long as the oil and gas industry stay strong so will our housing market.

Two additional factors affecting our national real estate market have been the rise in consumers purchasing condominiums and the increase in the purchase of recreational property. The later has definitely affected our real estate prices over the past year in the Quinte area. The baby boomers with their confidence in investing in this area have had an impact on property values. Toronto statistics for 2005 shows that 41% of new homes sold in 2005 were condominiums. An astounding statistic that will be working its way west! Baby boomers and empty-nesters see these home purchases as a positive lifestyle investment.

Having recently surveyed our REALTOR members we have gathered that buyers over the past year have come from the local market, GTA, Ottawa, or British Columbia. British Columbia is an interesting factor as the largest increase in residential prices was experienced in B.C. in 2005 and predicted to continue for 2006.

In recent years, we have shattered countless records and while we are always pleased to report that new benchmarks have been set, we are even more delighted that an increasing number of families recognize that investing in a home is the most sound decision you can make.

As we head into 2006 with continued high demand to reside in the Quinte area, the public perception may be that the market conditions are slower. However an increase in local relocation, strong growth in personal income levels, a strong economy, healthy personal debt to loan ratios, and low interest rates combine to contribute to the appealing conditions for buyers.

The residential re-sale market will also be strengthened by the expectation of a rise in new home prices, thanks to the rising cost of land, development charges and material costs.

Good news for buyers in the Quinte area is that they only require an average annual income of $39,000 to buy the average home compared to an annual average income of $60,000 required to live in the Toronto area.

Fortunately, low down payment mortgages with mortgage insurance makes it possible to make a smaller down payment and get into homes sooner even as prices rise.

Today, half of all Canadians who purchase homes choose a low down payment mortgage. Forty per cent of home buyers put down five per cent of the purchase price, while 35 per cent make a down payment of 10 per cent.

As we look to our neighbours to the South of us, we note that the National Real Estate Association is predicting that 2006 will be the second best year in US residential sales history.

2006 will be launching a new look to the Quinte & District Real Estate Board website and also for the National mls.ca site. These enhancements will provide the future buyers & sellers with the most up-to-date tools required when trading in real estate. Our record breaking year is evidence that working with a Quinte Real Estate Board Realtor will enhance your opportunity to achieve fair market value for your home and be able to make smart financial decisions when purchasing with a knowledgeable Realtor.

It has been a great 2 years as President of a phenomenal organization and known to be one of the best Real Estate Boards in Ontario. Teresa Whitmore, the new President of the Quinte & District Real Estate Board will be steering the Board through some soaring times ahead, as I move onto to the position of Past President.

Visit our website at www.quinte-MLS.com

The Quinte & District Real Estate Board serves the interest of 363 licensed real estate practitioners in the Belleville, Quinte West, Prince Edward, Madoc, Marmora, Stirling, Tweed, Brighton, Campbellford/Seymour, Colborne, and Deseronto areas as well as other adjacent communities.

Linda Middleton

President, Quinte & District Real Estate Board Inc.

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