Key takeaways:
- P.E.I. may not see home prices drop as they are in bigger cities.
- ‘Nothing runs straight up forever, so I think there will be some correction, but it’s anybody’s guess, really,’ states P.E.I. Real Estate Association president James Marjerrison.
There are indications that P.E.I.’s red-hot real estate market could be beginning to chill, but that doesn’t mean it will be any easier to split into the Island’s competitive real estate market.
Nationally, the market showed indications of cooling in March as both the number of houses sold and the average selling cost reduced compared to the last month. But that’s not the point of P.E.I.
“The flattening hasn’t necessarily beat us yet here,” stated James Marjerrison, the recently minted president of the P.E.I. Real Estate Association.
“But I would not be shocked, with increasing interest rates and record highs, that there would be a piece of a flattening period — I just haven’t seen that just yet.”
The latest stats show costs continue to increase, for now.
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According to the P.E.I. Real Estate Association, of the 194 houses or teams that sold on P.E.I. in April, the average cost was $414,742, up almost 20 percent from April 2021.
Low stock
Despite those record costs, fewer houses were sold in April on P.E.I. — nearly 23 percent fewer than last April’s record sales. During the first four months of 2022, there were nine percent fewer house sales than the same period the previous year.
That’s because, in detail, there were fewer houses available to sell — what sellers call low inventory. The number of new listings on the Island in April, at 265, was down almost 17 percent from April 2021.
None of which is good info for buyers expecting the market cools so they can purchase their first home or move up to a larger house.
Source – cbc.ca
