I am frequently asked "How much lower will prices go?" The reality is that here on PEI, properties have never been on a par with pricing in the larger centres. There is no comparison (never has been) between PEI selling values and those of Toronto, Vancouver, Calgary and other major centres. As a result, prices here were not inflated to begin with, so have not had the same major swings downward as those in the major centres. Same with waterfront here compared to cottage country in the Muskokas and other resort areas.
This is even more a fact in rural real estate on PEI where values have been historically lower than in the Island's cities. As a result, it is not likely that pricing in rural real estate here is going to see a major downward trend. So if you are planning to purchase a property on PEI, don't lose out on the opprotunity to buy a great property in the expectation that prices are going to tank! By comparison, we were never over-priced, so we aren't going to see huge overall slashing of prices.
As a primarily rural-real-estate agent, I can help you figure it all out!