Reason behind Peterborough’s Booming Real Estate Market

Locals are shocked at the recent boom in Peterborough’s housing sales, but it seems as if it’s a market that has been steadily rising since 2010. As there’s a higher demand for housing in the area, as many are moving out of the GTA, the cost of a Peterborough home has skyrocketed up by 12.5% from the start of 2019. The average price of a home jumped from $369,715 in December to $416,011 in January!

Despite the increase, buyers are still hot on the market. Approximately 115 units were sold in January, a 9.5% increase in sales from the same time the year before. “Activity has been improving, although at this point it is still running a little below average,” Burningham added. In just 9 years, the cost of the average home hovered only over $200,000 but is now over $400,000.

 

Locals Are Feeling The Heat

Cathi Riehle was shocked when she moved from Whitby to purchase a home in 2017. She ended up paying almost $20-30,000 over the asking price and couldn’t include conditions because of how aggressive the housing market is. “I’m in my 40s, and I’ve bought five houses. This was absolutely the worst experience out of all them,” Riehle said to Global News. “It was heartbreaking, nerve-wracking, stressful and costly. I had to take everything out of my savings, my RRSP to get my downpayment and make the offer I needed to. The last two years have been a crunch as I adjusted to a mortgage that was higher than I wanted.”

 

The Worst Is Yet To Come

To make matters worse, the PKAR reported that inventory was below average for the start of the year. By the end of January, there were just 362 active listings. While they were up 20.7% from the end of January 2018, it’s still below the average making finding homes even more difficult for those wanting to move to the area. “While activity is currently outperforming the start of last year, that is a pretty low bar,” said Cathy Burningham, President of the Peterborough and the Kawarthas Association of REALTORS® Inc. “Looking at year over year sales we can see that sales are still running a little below average. That said, unlike some other markets in Ontario, supply in our region remains near record lows, which is serving to keep a firm floor under prices.”

 

Overall supply continues to remain at deficient levels. Active residential listings totalled 415 units at the end of February, up 11.6% from the end of February 2018. That’s less than half the long-run average for this point in the year.

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