This was the first month we started to see the impact of the Covid-19 spread effect the real estate in PEI (and across Canada). The impact was definitely felt, but April will likely show the true extent of the downturn of the real estate market when those statistics come out. sometime in the middle of May. Residential home sales in March were exactly 100 units, down only a few (5) from last March. To date in 2020 home sales are at 327 units, up 10.1% from 2019. We are likely to see a significant change in April as compliance with health guidelines and a large economic slowdown weigh on the real estate market. In conjunction with that: active residential listings stood at 667 units at the end of March a 15.2% drop.
New Listings & Supply 🏡
The first signs of the Covid impact are being seen here: Effectively the last two weeks of March both nationally and locally saw huge slowdown, along with many other sectors of the economy. April will likely continue this trend. 150 new listings appeared on the PEI MLSⓇ System in March. This was a drop of 33.3% from last year, a 17 year low for the month and that didn’t even include the whole month.
Average Home Price 🏡
The average price of a home on PEI in March was $273,206. That was an almost 20% jump from last March. Cumulatively in 2020 the average home price is $267,644 for 2020 up 21.4% from last year’s first quarter. Total dollar value of all residential homes sold in March was $27.3 million, rising 13.9%. It remains to be seen how the Covid situation will effect pricing, however it seems likely prices will, like many other parts of the economy, freeze in place until after the storm has passed. Regardless real estate as always remains a good investment!
See you next month for what we’re sure will be some crazy statistics.