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The average home price in PEI continues its downward trend, data shows

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According to new data from the Canadian Real Estate Association, the average home price on PEI fell nearly 6 per cent in March of this year compared to last year.  (Steve Bruce/CBC – photo credit)

According to new data from the Canadian Real Estate Association, the average home price on PEI fell nearly 6 per cent in March of this year compared to last year. (Steve Bruce/CBC – photo credit)

The average price of a home on Prince Edward Island has fallen 8.8 per cent over the past two years, according to data released Tuesday by the Canadian Real Estate Association.

CREA's year-over-year data for March is based on PEI Real Estate Association listings.

The trend has been steadily declining for several years, with the island's average residential property price falling 5.7 percent last month compared to March 2023 and 8.8 percent year-on-year.

As of last month, the average home price is now $376,429 and includes both single-family and condo types.

CREA considers PEI’s market to be “balanced” in that neither buyers nor sellers are favored.

According to the CREA report's average time on sale, homes sold last month were on the market for 55 days – slightly longer than a year earlier, but nearly double the average 28 days for homes sold in March 2021.

Benchmark price up more than $10,000

However, last month the real estate association's guide price rose three percent to $355,100, compared to $344,800 in March last year.

From 2005 to 2020, the reference price for houses on PEI increased moderately. It took 15 years for the reference price of a home to double, rising from $115,800 to $230,300. But it only took another three years for prices to triple their 2005 value.

Sales increased by 10 percent compared to the previous year. Last month, 143 homes were sold, compared to 130 units sold the previous March. According to the data, of the homes sold last month, 115 were single-family homes and just six were condos.

The number of new entries also increased by almost 30 percent compared to the previous year: 288 were added in March, compared to 222 in the same period last year.

Monthly inventory, often used as a measure of the availability of homes for purchase, also increased slightly. Last month, inventory was 6.1 months, compared to 5.9 months in March 2023.

These averages are still well above 2022 and 2021, both of which were around two months of inventory.