SUMMERSIDE, P.E.I. — Summerside's housing market is experiencing many of the same trends seen elsewhere in Canada, including increased prices and homes flying off the market faster than before.
"If you had a house for sale, it was so exciting to get a buyer to look at it because there were hardly any buyers for all the properties on the market," said Katherine Elsinga, a real estate agent with Coldwell Banker/Parker Realty in Summerside. "Now it's just the opposite. There's so many buyers looking that when a house comes on the market, it's like you're flooded."
In October, homes in Summerside spent 21.5 (median) days on the market compared to 151 days in October 2013, according to statistics recently released by the P.E.I. Real Estate Association.
So far this year, including October, there have been 229 residential property sales in Summerside for a total amount of $52.2 million and 57 active listings remaining. The average price of homes sold has been $228,106, and the median price - $217,000. Year-to-date, properties have been on the market for 28 (median) days. The Summerside real estate listings in November 2020 were well within the average price of homes, but one property on Crozier Drive was listed much higher at $949,000.
On P.E.I. as a whole, there have been 1,771 residential properties sold so far this year worth $491 million. In October, residential properties on the Island were on the market for 29 (median) days, and the average price of residential properties sold was $298,668, and the median price was $264,000.
MULTIPLE OFFERS
Darcy Gallant, a real estate agent with Re/Max Harbourside Realty in Summerside, has worked in real estate for about 11 years. He calls the change in time on the market now compared to five or more years ago "crazy." The other aspect of that trend is that in 2013, for example, only about one in three of those homes sold whereas today the sales are closer to a one-to-one ratio.
Another trend that Gallant is seeing is multiple offers on about half of the homes for sale he's involved in, especially homes listed at under $200,000 and as long as the property is marketed properly and gets exposure. Multiple offers can also lead to potential buyers willing to pay above the asking price. Gallant recently represented a buyer who purchased a property in Summerside with multiple offers for about $5,000 above the asking price. The property was originally listed for $275,000.
In this case, the other offers came with conditions, such as a home inspection, financing approval, or the sale of the bidder's existing home.
"If you really think somebody is going to be up against it into a multiple (offer), you want to make it as attractive as you can for the seller, right?" said Gallant. "Whenever that seller looked at our offer, they knew that once they signed it, it was a firm deal. So, it takes the worry out of it, and they're already getting $5,000 above asking."
RESIDENTIAL STATISTICS
P.E.I.
Average price:
Oct. 2020 - $298,668
Oct. 2013 - $155,152
Median price:
Oct. 2020 - $264,000
Oct. 2013 - $137,000
Median days on market
Oct. 2020 - 29
Oct. 2013 - 103.5
SUMMERSIDE
Average price:
Oct. 2020 - $229,042
Oct. 2013 - $142,174
Median price:
Oct. 2020 - $222,500
Oct. 2013 - $153,979
Median days on market
Oct. 2020 - 21.5
Oct. 2013 - 151
ONTARIO CLIENTS
Similar to other parts of Atlantic Canada, Gallant has had some sales this summer from clients living outside of the Atlantic travel bubble, such as in Ontario, buying properties "sight unseen."
"We were super-scared that COVID was going to hurt the market, but with the way P.E.I. has handled COVID and with the Atlantic bubble, there's probably never been a better time to live here," he said.
One client sold their Ontario home for more than $1 million and bought a P.E.I. property and used the money to buy a P.E.I. property for $400,000, and paid for it in cash with significant pocket money left over. This is a trend that is familiar with real estate agents elsewhere in the region.
The other aspect of the Summerside real estate market that stands out for Gallant is the increase in the average price of a home.
"It's a real tough point for working couples, first-time home buyers. A lot of them I find are looking for properties with rental suites in them so they can afford it."
FIRST-TIME BUYERS
Elsinga agrees that the market and the price of homes is tough on first-time buyers. She also agrees that the other trend that stands out is the number of potential buyers from outside of Atlantic Canada willing to make a deal sight unseen.
"There's not very many people that would have bought sight unseen last year. But now they know they have to because you can't get in unless you have a deed, and it's got to be a house and you've got to have a plan," she said.
Most of her sales are outside of the city. One trend she says is becoming popular is people buying lots for mini-homes.
Gallant is also involved in real estate outside of the city. He said some of the smaller communities that are near water, such as Clinton, New London and Granville, have seen an increase in buyers in the past four years or more. A reason for the increase is the demand for short-term rentals but also young buyers who are looking down the road to a time when they might want a vacation property.
"So, what they'll do is they'll buy it, rent it for 10 years, and then by the time they're going to use it, it's half paid for."
Terrence McEachern is the business reporter for the Journal Pioneer.
