Charlottetown Residential Market Activity: A Closer Look at the Numbers
The real estate market in Charlottetown, the capital city of Prince Edward Island, has been experiencing some interesting trends in recent years. Let’s dive deeper into the MLS® residential market activity and examine the statistics from various periods, comparing them to previous years.
Sales Activity:
Looking at the sales activity for the month of June, we can observe fluctuations in the number of sales over the years. In June 2023, there were 48 residential properties sold, representing a 7.7% decrease compared to June 2022. However, when compared to June 2021, there was a 9.1% increase in sales. It’s worth noting that the sales activity in June 2020 saw a significant 20.0% drop, likely due to the impact of the COVID-19 pandemic. Overall, the market has seen some ups and downs but has remained relatively stable.
Dollar Volume:
The dollar volume of sales in June 2023 reached $21,440,450, which is an 18.4% decrease compared to the previous year. However, when compared to June 2021, there was a 50.2% increase in the dollar volume of sales. The significant growth in dollar volume compared to previous years indicates a robust real estate market in Charlottetown.
New Listings:
June 2023 saw 77 new listings, representing a 23.8% decrease compared to the previous year. However, when compared to June 2021, there was a 24.2% increase in new listings. This suggests that sellers were more active in the market during June 2021. The decrease in new listings in June 2023 might be indicative of a tightening market, with fewer properties available for sale.
Active Listings:
The number of active listings in Charlottetown has seen some fluctuations over the years. In June 2023, there were 213 active listings, representing a 21.0% increase compared to the previous year. This increase indicates a larger inventory of properties available for sale. However, when compared to June 2021, the increase in active listings was only 8.7%. The market has remained relatively stable in terms of active listings, indicating a balanced supply of properties.
Sales to New Listings Ratio:
The sales to new listings ratio is an important indicator of market conditions. In June 2023, the ratio stood at 62.3%, which means that for every 100 new listings, approximately 62 properties were sold. This ratio was lower compared to June 2022 but higher compared to June 2021. A ratio above 50% suggests a seller’s market, indicating that demand is outpacing supply.
Months of Inventory:
The months of inventory metric represents the number of months it would take to sell all the active listings at the current sales pace. In June 2023, the months of inventory stood at 4.4, indicating a balanced market. This means it would take approximately 4.4 months to sell all the active listings if no new properties were added to the market. This figure was slightly higher compared to June 2022 but lower compared to June 2021, indicating a relatively stable market.
Average and Median Price:
The average and median prices provide insights into the pricing trends in the market. In June 2023, the average price of a residential property in Charlottetown was $446,676, representing an 11.6% decrease compared to the previous year. However, when compared to June 2021, there was a 37.7% increase in the average price. The median price, which represents the middle point of all the prices, was $425,750 in June 2023. It showed a similar pattern, with a decrease compared to the previous year but a significant increase compared to June 2021.
Sale to List Price Ratio:
The sale to list price ratio indicates the percentage of the list price that the property sold for. In June 2023, the ratio was 97.5%, suggesting that, on average, properties sold for approximately 97.5% of their list price. This ratio was relatively consistent compared to previous years, indicating that sellers and buyers were able to negotiate prices close to the listing price.
Median Days on Market:
The median days on market represents the number of days it takes for a property to sell. In June 2023, the median days on market was 37.5 days, indicating a slightly longer selling period compared to June 2022. However, it was still relatively low compared to previous years, suggesting a relatively fast-paced market.
Year-to-Date Statistics:
To gain a broader perspective, let’s also examine the year-to-date statistics, which provide a cumulative view of the market activity from January to June.
Sales Activity:
From January to June 2023, there were 227 residential properties sold, representing a 12.4% decrease compared to the previous year. However, when compared to the same period in 2021, there was a 13.5% increase in sales. Despite the slight decrease, the market remained active and continued to show signs of growth.
Dollar Volume:
The dollar volume of sales for the year-to-date period in 2023 reached $98,596,366, which is a 12.9% decrease compared to the previous year. However, when compared to the same period in 2021, there was a significant 58.4% increase in the dollar volume of sales. This indicates a strong real estate market with higher-priced transactions.
New Listings:
From January to June 2023, there were 387 new listings, representing a 7.4% decrease compared to the previous year. However, when compared to the same period in 2021, there was a 10.6% increase in new listings. The decrease in new listings suggests a potential tightening of supply in the market.
Active Listings:
The number of active listings from January to June 2023 was 192, representing a 64.9% increase compared to the previous year. However, when compared to the same period in 2021, the increase in active listings was 20.2%. This indicates a larger inventory of properties available for sale, potentially providing more options for buyers.
Sales to New Listings Ratio:
From January to June 2023, the sales to new listings ratio was 58.7%, indicating a relatively balanced market. This ratio was slightly lower compared to the previous year but higher compared to the same period in 2021. The balanced ratio suggests a healthy equilibrium between supply and demand.
Months of Inventory:
The months of inventory from January to June 2023 stood at 5.1, indicating a balanced market. This figure was slightly higher compared to the previous year but lower compared to the same period in 2021. The balanced months of inventory indicates a relatively stable market condition.
Average and Median Price:
From January to June 2023, the average price of a residential property in Charlottetown was $434,345, representing a slight decrease compared to the previous year. However, when compared to the same period in 2021, there was a 39.6% increase in the average price. The median price for the same period was $410,000, showing a similar pattern, with a slight increase compared to the previous year but a significant increase compared to 2021.
Sale to List Price Ratio:
The sale to list price ratio for the year-to-date period in 2023 was 97.0%, indicating that, on average, properties sold for approximately 97.0% of their list price. This ratio was relatively consistent compared to previous years, suggesting a stable pricing environment.
Median Days on Market:
From January to June 2023, the median days on market was 48.0 days, indicating a slightly longer selling period compared to the previous year. However, it was still relatively low compared to the same period in 2021, suggesting a relatively fast-paced market.
Taking a Historical Perspective:
To better understand the long-term trends in the Charlottetown residential market, let’s compare the recent statistics to those from previous years.
Sales Activity (June only):
In June 2013, there were 35 residential properties sold, and this number gradually increased over the years, peaking at 66 in June 2017. However, the sales activity decreased to 44 in June 2020 and further dropped to 37 in June 2021. The recent sales activity of 39 in June 2023 suggests a slight recovery compared to the previous year.
New Listings (June only):
In June 2013, there were 102 new listings, and the number fluctuated over the years. The highest number of new listings was observed in June 2015, with 99 listings. However, in recent years, the number of new listings has been relatively consistent, with 93 in June 2020, 79 in June 2021, and 77 in June 2023.
Active Listings (June only):
The number of active listings in June shows some variations as well. In June 2013, there were 307 active listings, which gradually decreased over the years. However, since 2019, the number of active listings has been relatively stable, ranging from 144 to 209. In June 2023, there were 213 active listings, indicating a relatively balanced supply of properties.
Months of Inventory (June only):
The months of inventory metric demonstrates the changes in supply and demand dynamics. In June 2013, the months of inventory stood at 8.8, indicating a buyer’s market with more inventory available. Over the years, the months of inventory decreased, reaching a low of 1.8 in June 2021. However, in June 2023, the months of inventory increased to 4.4, indicating a balanced market.
MLS® HPI Composite Benchmark Price and Average Price:
The MLS® HPI Composite Benchmark Price and average price reflect the price trends over time. From January 2014 to July 2023, both the benchmark price and average price showed an upward trend. The prices experienced fluctuations, but overall, they have been on a consistent upward trajectory, indicating a strong and resilient real estate market in Charlottetown.
The residential real estate market in Charlottetown has seen some fluctuations over the years, influenced by various factors such as supply and demand dynamics, economic conditions, and external events like the COVID-19 pandemic. The recent market activity suggests a stable and balanced market, with some recovery in sales and prices compared to the previous year. The increase in active listings indicates a larger inventory of properties available for sale, potentially offering more options for buyers. As always, it is essential to consult with local real estate professional for the most accurate and up-to-date information when considering buying or selling a property in Charlottetown. Keith MacLean ReMax Charlottetown (902) 940-7151