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Is 2023 A Good Year To Sell A Home On Prince Edward Island? 

Is 2023 A Good Year To Sell A Home On Prince Edward Island?

If you’re considering selling your Prince Edward Island home, you’re probably wondering if 2023 is the right time – and you’re not alone. Many homeowners are on the fence about whether to list their homes for sale this year.

There are many important financial and personal questions that come to mind when choosing whether or not to sell your home. This blog will walk you through PEI’s current real estate market and how to decide whether or not to sell your property in 2023.

We’ll also share why we recommend having a real estate agent by your side if you decide to begin the home-selling journey.

Let’s get started!

WHAT CAN WE EXPECT FROM THE LOCAL REAL ESTATE MARKET IN 2023?

To understand what we can expect from PEI’s real estate market in 2023, we’ll first need to look at Canada’s economic predictions for the year. Throughout 2022, as inflation skyrocketed, the Bank of Canada gradually began to raise interest rate hikes to curb inflation.

However, we continue to see low unemployment rates, high consumer spending, and healthy corporate profit predictions. The economy appears to be in good shape. Yet inflation is still high and seems to be growing exponentially, leaving ‘bear’ economists to believe things are not as sound as they seem and a recession may be on the horizon.

WHAT DOES THIS MEAN FOR REAL ESTATE?

The local real estate market has slowed slightly over the past two years. Hiked inflation has led to higher interest rates and mortgage rates. Yet the market remains strong – properties under $500,000 will sell reasonably fast if priced correctly. 2022 made it clear that the market will not tolerate overpriced properties.

The market will likely remain strong throughout 2023 unless a severe recession develops, as ‘bear’ economists predict.

IS 2023 A GOOD TIME TO SELL YOUR HOME?

Deciding whether to sell your property in 2023 will depend largely on your reasons for selling. Generally, there are three possible scenarios.

YOU’RE MOVING OFF THE ISLAND

If you plan to sell your home to move off PEI, then there’s a good chance you need the money from the sale to finance your move.

However, if you don’t need to make a sale to afford the move or are just departing the island temporarily for work, then it may be a good idea to keep your home or rent it out. Due to housing shortages, the PEI market is strong and seems set to stay that way for the foreseeable future. This means once the market remains as it is, keeping your home to return to may be a good move.

YOU WANT TO CASH OUT & RENT A PROPERTY TO LIVE

Another reason you may be considering selling your home this year is to cash out and move into a rental property.

If this is your plan, now is likely a good time to do so. If you purchased your home five years ago or more, you’ll see a very healthy profit when selling in 2023. Keep in mind that the PEI rental market has a very low vacancy rate, and prices have increased considerably.

But overall, if you’re retiring, near retirement, or want to switch to low-maintenance living, it’s still a good time to make the leap to renting.

YOU WANT TO TRADE UP (OR DOWN)

If you fall into the third group, you want to sell your home to purchase a larger or smaller property in PEI. It’s important to note that 2023 has seen some changes to the best course of action regarding trading up or down.

Pre-covid, when the property market was more ‘normal,’ it made sense to sell your home before buying another. Due to the housing shortage, that process has been reversed. Now, you would first secure a new home before selling your old one. This way, you’ll be assured somewhere to live on PEI.

Apart from how you approach the process of trading up or down, you won’t be affected by the market in any other way. In other words, you’ll be buying and selling in the same market and price scenarios.

WHY SHOULD YOU USE A REAL ESTATE AGENT TO SELL YOUR HOME?

As we know, the real estate market in PEI has undergone some slight changes, and trying to navigate the market alone can be challenging. With a PEI realtor at your side, you have someone to support you throughout selling your home from beginning to end.

Here are the four reasons we recommend hiring a real estate agent to help sell your home.

THEY’LL HELP YOU FIND A BUYER FASTER

If this is your first time selling your home, you might not realize just how time-consuming the process can be. It can take valuable time out of your day and leave you feeling stressed and overwhelmed. With a real estate agent, your chances of finding the right buyer in a short time increase greatly. Any good real estate agent will have an extensive network of buyers to contact when selling your property.

Other ways agents can help your home sell faster include:

  • Listing your property for the right price
  • Carrying out a Comparative Market Analysis or CMA
  • Arranging an inspection
  • Arranging updates and repairs with trusted tradespeople
  • Effective marketing

THEY HAVE LEGAL KNOWLEDGE

Without any experience in the real estate world, knowing your rights and responsibilities as a seller is difficult. When you work with a real estate agent, they’ll take care of legal laws and transactions of selling a home. Eliminate the trouble of a lawsuit by handing over all legal translations to professionals.

THEY’LL NEGOTIATE THE DEAL

Negotiating a deal can be difficult without experience. On the one hand, you don’t want to sell your home for less than it’s worth, but on the other, you don’t want to scare buyers away by offering no wiggle room. Thankfully, your real estate agent will also have your best interests at heart and help you negotiate the best deal possible.

THEY POINT OUT YOUR HOME’S FLAWS

Real estate agents are experts in what makes homes sell. When looking at your home daily, you’ll likely have become immune to the little flaws here and there. But these flaws can significantly impact your home’s value or how it looks to potential buyers. A real estate agent will advise on what repairs are necessary and which are not. They’ll also recommend some trusted tradespeople to carry out the work.

We hope this has given you some good insight into PEI’s 2023 real estate market and why we believe now is an excellent time to put your home on the market.

SELL YOUR HOME WITH CENTURY21 NORTHUMBERLAND

Enjoy an unsurpassed standard of reliability and professionalism when you work with Century21 Northumberland Realty. Century21 realtors have their finger on the pulse of PEI’s local real estate market and are in the best position to advise you on selling your home.Your Century21 realtor will give you a minute-by-minute forecast of housing prices and a free home evaluation.

Reach out today to get started.

Nicolle Morrison- Century21 Northumberland - PEI Realtor

NICOLLE MORRISON

I am Nicolle Morrison, co-owner and broker at Century21 Northumberland Realty and leader of “the Power Team”, a group of realtors dedicated to both local and international clients. You can contact me at 902-888-7237 or nicolle@century21pei.com

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