P.E.I. faces housing glut
Supply is up and demand is down in the P.E.I. housing market, creating a buyers' market where homes are slow to sell.
Linda Mosher is one of the lucky people in the market looking for a new home, but only after suffering through the process of trying to sell hers.
"It was on the market before it was actually sold for about 11 months, which was at least six months longer than we expected it might be," said Mosher.
The P.E.I. Real Estate Association says the number of listings on the Island is up 10 per cent over last year. Association president Wayne Ellis told CBC News more older Islanders are selling their homes and downsizing, and others are moving out west. With so many houses to choose from, he said potential buyers are taking their time.
Sales this year are down 10 per cent.
"There's lots of choice, and it's a perfect buyers' market right now," said Ellis.
"They want all the bells and whistles for the same money. Years ago, they'd buy something just to get into a house, and now they're waiting."
That puts Mosher in a happy position now that she's sold her home.
"The market is flooded right now. There's all kinds of homes," she said.
Ellis believes if interest rates rose slightly more people would rush to buy a house before rates rise even more. But if mortgages stay cheap, and with lots to choose from, he does not believe market conditions will change any time soon.