Happy New Year everyone. It’s 2021 so that means it’s time for a slightly more detailed entry on both December and a year end roundup of PEI stats for real estate. All Data is courtesy the Canadian Real Estate Assn, and PEI REA. At first the year started out like any other but as we all know things went sideways in a major fashion. But being an island has its advantages, and our geographic luck combined with good policy seems to have saved us from the worst, and as a result our real estate market was quite resilient throughput the year. Though chronic problems of supply continue to be an issue and will likely continue well into 2021. By the end of 2020 the average home price on PEI had also climbed over $300,000 for the first time.
Home Sales & New Listings (2020 Year) 🏡
In total 2,103 homes were sold on the Island in 2020. This was actually an increase on 2019 but not quite the record set in 2017 of 2,165 as you can see in the chart below. That’s still an impressive number considering the disruption in the Canadian and PEI economy throughout the year.
As for 2020 Listings: there were 2,802 new homes listed on PEI in 2020, that’s down by about 200 from last year and continues a downward trend from 2015. Listing supply has been and remains a significant issue that has contributed to the average price of homes increasing on the Island. The pandemic has only exacerbated that issue and it looks likely to continue. There is strong demand as many clients are looking for homes but there’s low availability. 2021 will likely see this continue.
Active Listings & Months of Inventory (2020 Year) 🏡
For 2020 the theme of the year was of course the pandemic, but on PEI our continuing theme is low levels of inventory. The average number of homes on the market for the 12 months of 2020 was only 665. Compare that with 2015, only 5 years ago when the average was over three times that amount. As the year came to a close this number got even lower. December saw only 520 homes for sale by the end of the month on PEI. This is a major contributing factor in the continuing rise in home prices on PEI. The year long average “Months of Inventory” number was also very low at 3.8.
And importantly the year long average home price on PEI was $282,893. December however was well over $300k.