Influx of newcomers and retirees are driving demand for P.E.I. housing

The aggregate price of a home in Charlottetown showed a healthy increase in the fourth quarter of 2017.

It rose 5.8 per cent year-over-year to $240,441, according to Royal LePage House Price Survey released recently.

When broken out by housing type, the median price of a two-storey home saw a strong increase in the fourth quarter, appreciating 7.2 per cent year-over-year to $256,478. During the same period, the median price of a bungalow increased 4.9 per cent year-over-year to $202,764.

“Low inventory continues to drive Charlottetown’s home prices higher, as the region’s relative affordability is attracting immigration to the province, along with a continued flow of retirees primarily from Alberta and Ontario,” said Hamish Redpath, broker and co-owner, Royal LePage Prince Edward Realty. “Young families, established business owners and entrepreneurs are migrating from abroad to invest and live in Charlottetown. This is transforming our province’s population into one that is rich in diversity, like many other parts of Canada.”

Nationally, Canada’s residential real estate market saw strong, but slowing year-over-year price growth in the fourth quarter of 2017.

The Royal LePage National House Price Composite, compiled from proprietary property data in 53 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 10.8 per cent year-over-year to $626,042 over the three-month period.

When broken out by housing type, the median price of a two-storey home rose 11.1 per cent year-over-year to $741,924, and the median price of a bungalow climbed 7.1 per cent to $522,963. During the same period, the median price of a condominium appreciated faster than any other housing type studied, rising 14.3 per cent to $420,823 on a year-over-year basis.

Royal LePage predicts the price of a home in Canada will increase by 4.9 per cent by the end of the year.