Prince Edward Island’s mid-2025 residential market has fundamentally shifted away from the pandemic years’ extreme seller’s market. Recent numbers show sales on the upswing—up more than 50 percent year-over-year in June—while inventory is climbing, as well. This coupled with heightened balance is pushing the market toward balance. For buyers and sellers, that balance tilts the conversation: buyers have more choice, and sellers must position their homes carefully to get attention.
Prices on the Island continue to rise moderately, an average sale price of around $404,000. That’s roughly five percent higher than last year, and benchmark prices are at around $371,000. These are increases that are steady, not explosive, representing a stronger, more stable marketplace than we saw in 2021 and 2022. Experts forecast this trend to continue through the remainder of 2025 with moderate growth expected.
Is It a Good Time to Sell?
For sellers, things are good but constrained by sobering expectations. Demand remains high, partly driven by off‑island purchasers who see PEI as an inexpensive and desirable option compared to, say, Ontario or British Columbia. In the meantime, inventories are increasing, so competition looms again. Well‑priced, well‑displayed homes continue to sell in short order, but bidding wars are less common than they were two years ago.
In short, if you’re selling, now is still a good time. Just be prepared to price aggressively and work closely with your agent on marketing and staging to have your home shine in a market no longer red-hot.
Is It a Good Time to Buy?
Buyers have a less toxic scenario currently than they did in recent years. With listings higher, there is greater choice, and with bidding wars fading, negotiating is easier. Interest rates are still above historical norms but have been easing since mid‑2024. Additional cuts later in 2025 can still improve affordability for delayed buyers.
For individuals looking at moving from another province to the Island, this mix of reasonably moderate prices and gradually improving financing terms makes 2025 a good time to consider buying.
PEI Prices Compared to the Rest of Canada
The price gap between PEI and the rest of Canada continues to be one of the province’s best attractions. The Island’s average house price is roughly $404,000, whereas the national average is close to $698,000. Toronto and Vancouver, the major markets, continue to feature single-family houses far in excess of $800,000, whereas even smaller urban centers in Ontario and British Columbia frequently exceed $600,000.
This disparity gives purchasers transiting from higher-cost provinces the capacity to enter the PEI market with significantly more purchasing capability. It is also why the Island has continued to attract retirees, teleworkers, and young families searching for affordable home ownership.
What Happens If You Sell in Another Province and Buy on PEI?
Suppose a Toronto or Vancouver homeowner sells a home for $800,000. After deducting selling costs, they might take home $700,000. Buying a comparable house on PEI for some $400,000 leaves $300,000 in equity on the table—a sum of money to use toward debt reduction or investment.
Holding that $300,000 in a four-percent average annual rate of return moderate-risk investment portfolio would net around $12,000 annually in income. That is another $1,000 a month—money that can go towards vacations, supplement retirement, or serve as a cushion, all while enjoying the lower cost of living PEI has to offer.
Wider Market Trends Throughout Canada
Locally, housing markets are slowing from the pandemic boom years. Locally, the Canadian average house price is falling three to four percent year-over-year. Most analysts predict a reasonable recovery in 2026 but for now, most regions are flattening or weakening. That’s contrary to PEI, which has seen steady year-over-year gains and new highs for average sale prices this spring.
For current buyers who are moving from elsewhere in the province, this dynamic means selling in a marketplace which may have moderated but remains significantly higher-priced, and purchasing in PEI where prices remain relatively low. That differential holds out promise of lifestyle upgrades as well as fiscal relief.
Final Thoughts
The Prince Edward Island real estate market is in healthier condition than it has been for years—balanced, gradually appreciating, and still one of the country’s best values. Sellers can anticipate conditions to remain favorable as long as pricing and marketing are reasonable. Buyers, especially those transferring from more expensive provinces, view 2025 as a year to purchase at reasonable prices with rising supply and lower interest rates.
Most compelling of all is the equity play. Sellers in high-cost provinces like Ontario, Quebec, and British Columbia can often buy in PEI for half the price, having hundreds of thousands of dollars to invest. Even a low percentage rate of return on those dollars can generate sizeable supplemental income, adding to the Island’s appeal not only as lifestyle, but as a solid economic choice.