PEI Real Estate Market Update — Weekly Report

Last reviewed: October 12, 2026
Latest substantial update: October 12, 2026

Prince Edward Island home sales strengthened in September, reaching their highest level for the month since 2021. Buyers remain active, but historically high listing levels and relatively stable benchmark prices show that the market remains well supplied and more balanced than the exceptionally competitive conditions seen in earlier years.

This week’s key development

September sales strengthened while inventory remained elevated

Prince Edward Island recorded 201 residential property sales in September 2026, an increase of 6.9% from September 2025. This was the highest September sales total recorded on PEI since 2021.

The September results included:

Sales were 12% above the five-year September average.
Sales were 1.6% above the 10-year September average.
Year-to-date sales reached 1,484 properties.
Year-to-date sales remained 9.7% below the first nine months of 2025.
The total value of September sales reached a September record of $82.4 million.

The stronger September results change the emphasis of the PEI market story. Sales are no longer simply continuing to slow. Buyer activity improved considerably during September, but abundant inventory and relatively stable benchmark prices continue to keep the overall market balanced.

Buyers still have more properties to compare than they did during the tighter markets of recent years. Sellers are seeing more active demand, but they continue to compete with historically high listing levels.

Source: CREA and the Prince Edward Island Real Estate Association

PEI home sales

September produced a notable improvement in PEI residential sales:

201 residential properties sold in September 2026.
September sales increased 6.9% from September 2025.
This was the strongest September sales total since 2021.
Sales were 12% above the five-year September average.
Sales were 1.6% above the 10-year September average.
1,484 properties sold during the first nine months of 2026.
Year-to-date sales remained 9.7% below the same period in 2025.

September shows that buyers remain active when properties are presented and priced appropriately. Financing, overall affordability, condition and asking price continue to influence purchasing decisions, but the latest figures do not support describing the market as broadly inactive.

The year-to-date decline is still relevant. September’s improvement does not erase the slower activity recorded earlier in 2026, but it suggests that the market entered the fall with more momentum.

PEI home prices

PEI home prices remained relatively stable in September:

The MLS® benchmark price was $377,900 in September 2026.
The benchmark increased only 0.5% from September 2025.
The average price of homes sold in September was $409,925, up 1.4%.
The year-to-date average price was $410,668, up 3.1%.

The benchmark price is designed to measure changes in the value of a typical home more accurately than a simple average. Average prices can change depending on how many higher-priced, lower-priced or specialized properties sell during a particular month.

September’s stronger sales did not produce a sharp province-wide price increase. This suggests that buyers became more active without returning the market to the highly competitive conditions experienced during earlier years.

Conditions can still vary substantially by community, property type, price range and condition.

Source: CREA and the Prince Edward Island Real Estate Association

Listings and market balance

Inventory remains one of the most important parts of the current PEI market:

341 new residential listings entered the market in September.
This was the largest number of new listings ever recorded during September.
New listings increased 4.9% from September 2025.
New listings were 12.7% above the five-year September average.
New listings were 17.3% above the 10-year September average.
There were 1,360 active residential listings at the end of September.
This was the highest September inventory level in a decade.
Active listings were 12.8% above the five-year September average.
Active listings were 24.8% above the 10-year September average.
PEI had 6.8 months of inventory, down from 7.2 months in September 2025.
The long-term September average is 5.7 months.

Months of inventory estimates how long it would take to sell the available listings at the current sales rate.

September’s 6.8 months of inventory was also lower than the 7.4 months recorded in August. This indicates that stronger September sales absorbed available inventory more quickly, even though the number of active listings remained historically high.

Province-wide conditions are best described as relatively balanced but still more favourable to buyers than the unusually tight markets of recent years. Buyers generally have more selection, while sellers continue to compete with a large number of other listings.

New-home construction

The latest available CMHC figures show that Prince Edward Island recorded only 58 housing starts in August 2026, down from 194 in August 2025.

The monthly results included:

19 single-detached homes, down 37% from 30 one year earlier.
39 apartments and other housing types, down 76% from 164.
A 10% decline in PEI’s six-month housing-start trend from July.
1,140 units under construction, up 4.3% from July.

The 70% decline in total August starts is striking, but one month should not be considered in isolation. PEI’s relatively small market can experience large monthly changes depending on when apartment and other multi-unit projects begin.

During the first eight months of 2026:

PEI recorded 991 total housing starts, compared with 1,004 during the same period in 2025.
Single-detached starts declined 20%, from 205 to 165.
Starts for apartments and other housing types increased 3%, from 799 to 826.

The broader story is not that residential construction has stopped. Total year-to-date construction is approximately level with 2025, but considerably fewer new single-detached homes are being started.

This may gradually increase rental and multi-unit housing supply without adding as much direct competition to PEI’s existing single-family resale market.

Source: CMHC housing starts and construction data for August 2026

What the current market means for PEI buyers

Current conditions may offer buyers several advantages:

More homes are available than during recent years.
Buyers may have more time to compare properties.
Some sellers may be more willing to consider reasonable conditions or negotiations.
A professional inspection remains important, particularly for older, rural, waterfront or seasonal properties.
Buyers should compare the property’s condition, operating costs and location—not simply its asking price.
Mortgage pre-approval remains important because advertised interest rates and borrowing qualifications can change.
Market conditions vary by community and property type, so province-wide statistics should not replace local research and professional advice.

Increased inventory does not mean every property is negotiable. September’s stronger sales show that well-priced homes in desirable locations can still attract considerable interest.

What the current market means for PEI sellers

Buyer activity improved in September, but sellers are still competing with historically high inventory:

The initial asking price should reflect current comparable sales.
Buyers can compare a property with more alternatives.
Overpricing can result in fewer showings and a longer time on the market.
Price reductions do not always recover the attention lost during the first weeks of a listing.
Repairs, cleanliness, photography and overall presentation remain important.
Unique features should be explained clearly and supported with accurate listing information.
Local conditions may be more relevant than the province-wide average.

A current comparative market analysis can help determine how similar properties are performing in the immediate area.

Mortgage and financing update

The Bank of Canada maintained its policy interest rate at 2.25% on September 2, 2026.

As of October 7, the typical rates posted by Canada’s six major chartered banks included:

Prime rate: 4.45%
One-year conventional mortgage: 5.49%
Three-year conventional mortgage: 6.05%
Five-year conventional mortgage: 6.19%

The typical five-year posted rate increased from 6.09% to 6.19% during the week ending October 7. This small increase illustrates that fixed mortgage rates can change even when the Bank of Canada policy rate remains unchanged.

Posted rates are not necessarily the rates offered to every borrower. Available rates can depend on:

Down payment.
Credit history.
Mortgage insurance.
Property type.
Owner-occupied or investment use.
Amortization period.
Mortgage features and lender conditions.

Buyers should obtain a current mortgage pre-approval and discuss available options with a qualified lender or mortgage professional.

The next scheduled Bank of Canada interest-rate announcement is October 28, 2026.

Bank of Canada policy interest rate
Bank of Canada posted interest rates

Non-resident ownership rules

PEI passed amendments to the Lands Protection Act on May 29, 2026, concerning non-resident ownership of municipal properties.

The proposed rules would generally:

Define a municipal property as a property of one acre or less in an area with an official plan.
Allow a non-resident to acquire an interest in one municipal property without special approval.
Require Executive Council approval before a non-resident acquires a second or subsequent municipal property.
Grandfather existing ownership while applying the new rules to additional acquisitions after the amendments take effect.

However, IRAC confirms that these amendments have not yet been proclaimed and are not currently in effect.

The existing acreage and shoreline rules remain important. Non-residents should obtain current legal advice before purchasing multiple properties, waterfront land or larger parcels.

Source: IRAC Lands Protection information

PEI property taxes

The provincial non-commercial property-tax rate is currently $1.70 per $100 of taxable assessed value.

Qualifying PEI residents may receive a provincial tax credit of $0.70 per $100. Non-resident owners generally do not receive this credit.

Property owners may also pay:

Municipal property taxes.
Fire district charges.
Island Waste Management charges.
Other applicable local fees.

Property taxes are calculated using taxable assessed value, which is not necessarily the same as the purchase price or current asking price.

Source: Government of PEI property taxes and charges

Current buyer and seller rules

No consequential new province-wide buyer-representation, seller-disclosure, commission or real-property-transfer-tax change has been identified this week.

PEI’s Real Property Transfer Tax generally remains 1% of the greater of:

The purchase price.
The assessed value of the property.

Exemptions or special circumstances may apply, so buyers should confirm their expected closing costs with a PEI lawyer.

Source: Government of PEI Real Property Transfer Tax information

Is PEI currently a buyer’s or seller’s market?

Province-wide conditions were relatively balanced in September 2026. Inventory remained above historical averages, giving buyers more choice, while stronger sales reduced months of inventory to 6.8. Conditions can differ by community, property type and price range.

What we are watching

Whether September’s stronger sales activity continues through the fall.
Whether historically high resale inventory continues to give buyers greater selection.
Whether the benchmark price remains relatively stable.
Whether slower single-detached construction affects future resale demand.
Whether fixed mortgage rates continue to rise independently of the Bank of Canada policy rate.
The Bank of Canada’s next interest-rate decision on October 28.
When PEI’s new non-resident municipal-property rules are proclaimed.
Whether individual PEI communities or property types begin showing materially different trends from the province-wide market.

Proposals and early signals will not be presented as current rules or established market trends until authoritative information is available.

Previous report updates

October 12, 2026: Added September home sales, prices, listings and inventory figures, and updated the five-year posted mortgage rate.
September 28, 2026: Added PEI population and migration information as context for housing demand.
September 21, 2026: Added August housing-start figures and updated the discussion of single-detached and multi-unit construction.
September 14, 2026: Added August home sales, prices, listings and inventory figures.
September 7, 2026: Confirmed the Bank of Canada’s September interest-rate decision.

About this report

This page is reviewed weekly using information from the Canadian Real Estate Association, the Prince Edward Island Real Estate Association, the Canada Mortgage and Housing Corporation, the Bank of Canada, the Government of Prince Edward Island and the Island Regulatory and Appeals Commission.

Market statistics describe broad conditions and should not be treated as a valuation of a particular property. Buyers and sellers should obtain advice appropriate to their location, property type, finances and circumstances.

Sources

The following sources were used to prepare and fact-check this report.