November data for the Canadian housing market including PEI is now out and the overall trend of a short supply and gradually rising average prices continues, though it is starting to show signs of returning to normal. The following statistics and charts are courtesy the Canadian Real Estate Association, with data provided by the PEI Real Estate Association.
Residential Sales Activity
Sales of homes remained above average for November, but down from last year’s record-high by 7.5% to 136 units. To this point in the year total homes sales in PEI stands at 1,942 units, which is also down slightly (4.6%) from last year. As we head into the slower months of winter this will be interesting to keep an eye on.
Average Home Price
The average price of a home on PEI continued its slow climb in November to $226,155, which is up by 10% or so from last Nov. The year as a whole to this point has the average price at $211,088 which is up a more modest 3.8%. Certainly not overheated like some markets in Canada, but the price has definitely increased due to lower inventory supply and strong employment numbers on the Island.
166 New residential listings were added in November, which is almost identical to last year, so very little change there. Although the downward trend of supply continues as it has for the past 3 years and it remains at its lowest point in 16 years. As of the end of November there were 866 homes listed for sale on PEI, down 11.7% from last November. This leaves us with 6.5 months of inventory if no new listings were to come on the MLS® system it would only take about half a year to sell through everything on the market today. That number should be around 14 months given past averages to put it into perspective.