Prince Edward Island’s housing market cooled further in July 2026, with sales declining 19.2% year-over-year to 181 transactions – the slowest July total since 2021. New listings fell a smaller 2.5% to 421, while active listings edged up 0.9% to 1,373, the highest for July in more than five years. Months of supply rose to 7.6, up from 6.1 a year ago and now well above the long-run average of 5.4 months, putting the market firmly in buyer’s territory. Despite the sales slowdown, the average home price rose 5.6% to $402,099, and the MLS HPI composite/single-family benchmark gained 2.4% to $388,400.
Key statistics (July 2026)
| Metric | Value | Year-over-Year |
|---|---|---|
| Average Home Price | $402,099 | +5.6% |
| YTD Average Price | $409,136 | +3.1% |
| MLS HPI Composite/Single-Family Benchmark | $388,400 | +2.4% |
| Total Sales | 181 | -19.2% |
| New Listings | 421 | -2.5% |
| Active Listings | 1,373 | +0.9% |
| Months of Supply | 7.6 | +24.6% |
| Dollar Volume | $72.8 million | -14.7% |
| Market Condition | Buyer’s Market | N/A |
PEI’s board write-up reports a single combined “composite/single-family” HPI benchmark rather than separate figures by property type – unlike most other provinces, PEI’s board does not publish a townhouse or apartment benchmark.
Market conditions
PEI’s market has shifted firmly into buyer’s territory in July 2026. Months of supply rose to 7.6, up from 6.1 a year ago and above the long-run average of 5.4 months for this time of year, giving buyers considerably more leverage than they’ve had in recent years.
Sales of 181 were the slowest July total since 2021 and 7.3% below the five-year average. New listings held up better, down only 2.5% to 421, while active listings actually rose 0.9% to 1,373 – the highest July level in more than five years. Despite the softer sales, prices have continued to climb: the average price rose 5.6% year-over-year and the benchmark gained 2.4%, suggesting the slowdown reflects fewer transactions rather than weakening demand or falling prices.
PEI’s very small market size (181 monthly sales) means percentage changes can appear dramatic from modest shifts in absolute numbers.
Key trends
- Sales at a multi-year low – July 2026 sales of 181 were the slowest July total since 2021, down 19.2% year-over-year.
- Prices still rising despite fewer sales – The average price gained 5.6% year-over-year and the benchmark gained 2.4%, showing the slowdown hasn’t translated into price declines.
- Supply building – Months of supply rose to 7.6, up 24.6% year-over-year, firmly in buyer’s territory and above the long-run average.
- Active listings at a multi-year high – Active listings haven’t been this high in the month of July in more than five years, giving buyers meaningfully more selection.
- Small market, big percentages – With only 181 monthly sales, modest absolute changes produce headline-grabbing percentage swings.
Housing affordability
PEI’s average home price of $402,099 has risen significantly from pre-pandemic levels when prices were closer to $250,000. To purchase a home at the current average with a 20% down payment, a household would need an estimated annual income of approximately $98,000.
While still more affordable than Ontario or BC, PEI’s continued price appreciation has created affordability pressure for island residents, particularly younger buyers and those on fixed incomes.
Use our mortgage affordability calculator to determine how much home you can afford, or our income to afford home calculator to estimate the salary needed at PEI price levels.
Useful calculators
- Mortgage Calculator
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- Income to Afford Home Calculator
- Land Transfer Tax Calculator
- Closing Costs Calculator
- Mortgage Rates
- First-Time Home Buyer Guide
Related housing reports
- Halifax Housing Market — Nearest major city market
- Nova Scotia Housing Market — Neighbouring Atlantic province
- New Brunswick Housing Market — Neighbouring Atlantic province
- Canada Housing Market Overview — National trends and provincial comparisons
Buying a home in PEI: practical guide
Closing costs:
- Deed Transfer Tax: 1.0% of purchase price
- Lawyer fees: $1,200–$2,000
- Home inspection: $350–$500
- Title insurance: $200–$350
- Well/septic inspection (rural): $500–$1,200 (common in PEI)
Land ownership rules: PEI’’s Lands Protection Act restricts non-residents from owning more than 5 acres without approval from the Island Regulatory and Appeals Commission (IRAC). Canadian citizens and permanent residents are not restricted.
First-time buyer programs:
- Federal FHSA and RRSP HBP apply
- PEI First Home Down Payment Assistance: A provincial program providing a down payment loan for qualifying first-time buyers (income-tested; contact PEI Housing for current terms)
PEI housing market outlook
2026 outlook: PEI’’s housing market has moderated from exceptional 2020–2023 growth driven by remote-work migration. Prices remain elevated relative to pre-pandemic levels but have stabilized. Charlottetown maintains the tightest conditions; rural communities offer more buyer choice.
Seasonal market dynamics: PEI’’s tourism-driven economy creates seasonal market rhythms. Listing activity peaks in April–June; serious buyers active in winter may face less competition.
New construction: PEI has a relatively small construction industry; new builds are slower to deliver supply than in larger provinces. This limits relief on housing inventory.
Frequently asked questions
Can I buy property in PEI if I live in Ontario? Yes — Canadian citizens and permanent residents face no restrictions on PEI property ownership regardless of home province. Only non-residents of Canada face land ownership restrictions under the Lands Protection Act.
What should I know about rural PEI homes? Many rural PEI homes use well water and septic systems. Before purchasing, commission a well water test and septic inspection (typical cost $500–$1,200). PEI’’s red soil can affect foundation drainage; request a structural inspection for older homes. Home insurance for rural PEI properties may have premium variations.
Data Sources
The housing market data in this report is sourced from:
- PEI Real Estate Association (PEIEA)
- Canadian Real Estate Association (CREA) – National MLS® Statistics
- Data period: July 1-31, 2026