Steady growth in demand has pushed Prince Edward Island’s housing supply to its lowest point in 16 years, according to data from the Prince Edward Island Real Estate Association.
The region’s active residential listings stood at exactly 1,000 units by the end of September, dropping by 8.9% annually.
The impact of scarcity has become especially visible in Charlottetown, according to the Canadian Real Estate Association. The market has been labouring under severely intensified competition and price growth over the past few years.
CREA figures showed that the city’s average home sales price grew by 38.5% from 2016 to 2019, ending up at $277,000 as of mid-year. To compare, the pace was relatively milder in other major Canadian markets like Ottawa (21.6%) and Toronto (25.3%) during the same period.
This is despite year-to-date sales in PEI shrinking by 7.2% annually, to a total of 1,475 units. Conversely, the total dollar value of all of PEI’s residential home sales last month increased by nearly 16%.
The market’s September 2019 volume reached $46.2 million, representing 15.9% annual growth and establishing a new record high for that month. This fed into higher average prices, which grew by 17.2% year-over-year to reach $250,955.
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