This question comes up a lot lately, so I thought I would compare the past few years in terms of listings and sales volume by month. The data* is for Residential Sales in the Greater Charlottetown Area, including Stratford and Cornwall, back to 2005.
While inventory is up and the sales volume is down, prices have remained fairly steady in this area. It is interesting that June, July, and August sales were actually UP compared with 2006.
The charts provide a pretty clear picture of the trends in the past few years - click on the chart to enlarge them.
*Data Source: PEIREA Historical Reports