P.E.I.'s hot housing market freezing out potential buyers

With house prices climbing on P.E.I. and real estate selling at record-breaking rates, some people trying to become homeowners say it's a difficult endeavour.

"It is incredibly frustrating," said Leon Jessowho rents an apartment in Summerside.

"I thought I'd have my own house by the time I was 20. That turned into 25, that turned into 30 and that's going to turn into 35 this year."

Jesso said he's been keeping an eye on P.E.I.'s housing market since moving to the Island around four years ago. At the time, he was waiting to secure a good job before seriously considering making a purchase.

"I did not expect the housing market to rise so quickly, so fast."

Now, employed by the federal government, Jesso said he is still unable to afford a house in the current climate.

"My salary is $62,000 a year. My net doesn't look that good but my gross is enough that I think I should be able to get a home," he said.

'Volatile market'

According to data released by the Prince Edward Island Real Estate Association, the number of sales in March 2021 increased 81.7 per cent compared to March 2020.

The average cost for a home also jumped 21.9 per cent.

If it's not selling fast, then it's either in the wrong place or it's the wrong price. Wayne Ellis

"We've never had this kind of increase in price or increase in market activity," said Wayne Ellis, the association president.

While the stats show a significant jump, Ellis said it's important to keep in mind what the province looked like in March of 2020: P.E.I. had just confirmed its first case of COVID-19 and health restrictions were starting to be implemented.

"They can be a little misleading at times, but technically speaking, prices have gone crazy," he said. "At this point in time, it's a very volatile market."

For Island real estate agents, the data comes as welcomenews. Ellis said well-priced homes are getting scooped up quickly and thinks about half of those are receiving multiple offers.

"If it's not selling fast, then it's either in the wrong place or it's the wrong price," he said.

On the other hand, Ellis said for those buying a home, limited supply is leading to competitive price tags.

"I think we have to look after the people that are here and make homes available to everybody in here at a reasonable price," he said.

"All we can do is just do the best we can and hopefully the market in the middle range will improve and we will be able to make this market what it should be ... with everybody winning."

'It's hard to keep up'

Stratford-resident Jessica Grantsaid she has experienced that competitive market first hand.

"As soon as something's on the market, it's snatched up the next day. People are putting in offers way above asking," she said.

"It's just not something that we can match."

Grant said she and her husband both have full-time jobs with decent-paying salaries. But likeJesso, houses are still too expensive.

"Everything seems to be just going up and up so it's hard to keep up with the rates."

Grant and Jesso said despite the hot market, they plan on continuing to look for a home.However, if everything remains the same, that hunt might be forced elsewhere.

"We do want to stay on the Island. We want to make our roots here. We love the Island," said Grant. "But it's hard to make those roots when we can't find a home."

As for Jesso, he said the clock is ticking.

"If things don't change within the next fiveyears, I'll be looking out of the province."

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