May 2023 witnessed a surge in MLS® home sales on Prince Edward Island, surpassing historical averages and highlighting the thriving real estate market on the island. A total of 212 residential properties were sold through the MLS® System of the Prince Edward Island Real Estate Association, marking a notable 13.4% increase compared to May 2022.
Impressively, home sales in May were not only 12.8% higher than the five-year average but also exceeded the 10-year average by 12.6%, indicating sustained growth and robust demand within the market during this time of year.
However, it’s important to note that on a year-to-date basis, home sales experienced a decline of 21.3%, with a total of 685 units sold in the first five months of 2023 compared to the same period in 2022.
The MLS® Home Price Index (HPI) provided valuable insights into price trends, offering a more accurate representation than traditional average or median price measures. In May 2023, the overall MLS® HPI composite/single-family benchmark price reached $358,200, reflecting a modest gain of 3.3% in comparison to May 2022.
The average price of homes sold in May 2023 was $379,924, indicating a 6.8% decrease from May 2022. Similarly, the year-to-date average price stood at $382,880, representing a slight decline of 1.9% from the first five months of 2022.
The total dollar value of all home sales in May 2023 amounted to an impressive $80.5 million, showcasing a robust 5.6% increase from the same month in the previous year. This remarkable figure also established a new record for the month of May, emphasizing the strength and attractiveness of the Prince Edward Island real estate market.
On the listing front, May 2023 witnessed a significant 18.6% decrease in new residential listings compared to May 2022, with a total of 338 new listings recorded. These figures fell 5.1% below the five-year average and 18.5% below the 10-year average for the month of May, indicating a limited supply of new properties entering the market.
The active residential listings at the end of May numbered 819 units, experiencing a substantial jump of 31.5% from the previous year. This represented an increase of 12% above the five-year average, while still standing 32.2% below the 10-year average for the month of May, showcasing a market in flux.
The months of inventory, which measures the time it would take to sell current inventories at the current rate of sales activity, reached 3.9 at the end of May 2023. This was an increase from the 3.3 months recorded at the end of May 2022 but remained below the long-run average of 6.9 months for this time of year. These figures indicate a continued demand in the market, potentially leading to further price appreciation and competition among buyers.
Keith MacLean REALTOR ReMax Charlottetown, PEI