Summerside leads P.E.I. in house price increase

House prices on Prince Edward Island were up 15.3 per cent in the third quarter of 2021 compared to the year before, and up considerably more in P.E.I.'s two cities.

The P.E.I. Real Estate Association released statistics for September on Monday. They track sales on the MLS system.

Overall the report includes the sale of 444 houses on the Island from June to September, at a median price of $340,000. Wayne Ellis, president of the P.E.I. Real Estate Association said it is about supply and demand.

"Prices are up and that's because listings, even though it looks like they're up a bit, they're historically quite a bit below the norm," said Ellis.

Prices were up the most in Summerside. The report included the sale of 59 homes in that city, and they sold for a median price of $312,500, which is 35.9 per cent more than in the third quarter of 2020.

In Charlottetown the MLS system recorded 92 sales with a median price of $401,250, up 22.1 per cent over the previous year. The North and South Shore region was the busiest in the province with 105 sales. Prices there were up 24.8 per cent with a median price of $355,000.

Supply still low

Across the province, sales for the quarter were down 25.9 per cent.

While sales were down the supply remains tight by historical standards, although it is larger than it was a year ago.

There were 4.1 months of inventory at the end of September, up from 2.8 months a year ago. Supply is still less than half the recent historical average of 8.9 months.

The low supply and rising prices are making it difficult for people trying to enter the housing market, said Ellis.

"As we stand right now, we're still short on affordable homes for P.E.I. people," he said.

"From a government standpoint, I think we have to address that situation. I think new construction has to increase considerably in order to keep up with the current demand."

But Ellis did note that the construction industry is already busy building new homes, both houses and apartments, and is facing a labour shortage that will make it difficult to build more houses.