The Toronto real estate market has recently seen a reduction in the average residential sale price … the first time in 10 years. Because Real Estate trends in Quinte often follow Toronto's lead, my best guess is that this decline in residential sale prices will soon find its way to our area.

For the last two to three months, I've been telling my clients that, compared to this time last year, there is a glut of homes listed for sale. Also, sale prices in Quinte were slightly higher in the first nine months of this year than they were during the same period in 2007. However, the caveat I also add is that "a correction in pricing is inevitable when there is more supply than demand".

Within the Quinte & District Real Estate Board, statistics to and including September 2008 showed an average sale price of $202,350 which represents a 2.9% increase over the same period in 2007 ($196,713). Please keep in mind this is an average for the entire region; individual areas and price ranges will differ. Again these statistics represent no slippage in average sale price, but it is important to note that in the first nine months of this year, 6527 properties were listed for sale, which is an increase of 888 properties that were listed for sale during the same period in 2007. A correction in pricing seems to be inevitable and, for some folks, has already happened. If we look at the sale price of property strictly in the month of September, we see the beginnings of downward price adjustments. Specifically, the average residential sale price in September 2008 was $192,403 and in September 2007 it was $ 202,151 - a decrease of 4.9% which, while not a drastic decline, is a decline nonetheless.

However, all is not doom and gloom. Because of the oversupply of homes presently listed for sale, it is a Buyer's market and interest rates are still very, very attractive. If you are a Seller or potential Seller, keep in mind that 2007 was the best year ever for Real Estate prices in the Quinte area. Thus, a minor correction should not be a major concern in the greater scheme of things. Furthermore, with the upswing in the local economy we should not take as large a 'hit' on pricing as we have seen elsewhere in North America. For example, the projected increase in personnel at CFB Trenton and within other local businesses may help minimize the downhill portion of the roller coaster ride. After all the view from the top of the roller coaster is much more enjoyable and a lot easier on the stomach than is the plummet to the bottom!