For September sales are up MOM(month over month), inventory is down and prices are sitting at highs not seen in the last 4 years. Last month’s steep dip in sales appears to be an anomaly rather than a sign of things to come.
Sales increased 18% MOM. Although There was a strong rebound from last month, sales for September are lower than the last few years and for a strong real estate market we need higher sales numbers.
2008 was clearly a weak year when we observe the swell in inventory that began in April 08. If there is an oversupply of homes on the market prices will moderate as buyers have more selection and feel less urgency. Currently inventory is at roughly the same level as 2005-2007, all very strong years for PEI real estate.
Prices are very strong when compared with the last 3 Septembers. The average price came in at 142k vs. 129k in 2008 (10% increase ). This is very good news for Island home owners and a testament to the overall stability of the PEI housing market.
Lots of positive financial news is making headlines lately. Today the IMF predicted that Canada will lead the G7 nations out of recession. As the economy stabilises and wealth returns to those who we're hurt in the stock market, real estate will strengthen further. Have a great Thanksgiving and a happy Halloween!
Here are the charts: