The PEI housing market is showing signs of stabilizing as we head into the slower winter months, but things are still pretty busy. Sales activity for the month of October fell in line with the average for the last 10 years as you can see from the chart below. 179 homes were sold in the month. A big decrease from last year of 21% but about on par with what we expect historically.
In contrast, 276 new listings were added to the PEI MLS® System during October. This was enough to finally start tilting the inventory levels a bit higher, though they’re still at historic lows as we’ll talk about shortly. The number of new listings was up 12% from this month last year. But down slightly from last month as we head into winter.
As we mentioned above inventory has been a problem for some time now, but it’s looking like things might be stabilizing a bit as new listings outpaced sales by a solid amount in October. We’ll see what next month brings, but as of the end of October there were 711 active listings on the system up from 638 last year (11%) but down slightly from last month’s 758.
Months of inventory numbered 4 at the end of October 2021, up from the 2.8 months recorded at the end of October 2020 but still well below the long-run average of 8.8 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. So supply is getting a bit better but again we’ll see what next month brings!
Finally the average home price on PEI in October 2021, which stood at $365,374 an increase of 22.7% from last year and a jump from 335K last month!