Island realtors hopeful sales will pick up after dismal spring

P.E.I.'s real estate association says it's hopeful the market will start to reboundafter a spring plagued bylow sales and a shortage of listings.

According to the association's figures for April and May,sales across the Island weredown nearly 50 per centcompared to the same period last year.

The number of listingsdropped 25 per cent, further reducing an already short supply of homes on the Island market.

"The biggest obstacle isaccess to homes," said Greg Lipton, the association's president.

"People are afraid to allow people to come into their homes."

Pandemic restrictions and financial uncertainty

At the end of March, as the pandemic was gaining steam across the country, the associationordered agents to stop doing open houses and in-person showings, forcing themto rely on photos and virtual housetours.

Lipton saidthose restrictionshave easedin the past few weeks, as the Chief Public Health Office has loosened its own rules around indoor gatherings.

Though the financial uncertainty facing some Islanderswho've lost jobs or pay during the pandemicstill remains an obstacle, he said.

"There's people that have a lower income so far this year.So, if you're on 75 per centincome, is the bank going to look at you favourably?" said Lipton.

Another challenge facing the real estate market the continued restrictions on people visiting the Island.

"There's the fact that people can't come onto the Island from away," said Lipton. "And that's a big part of who buys on P.E.I."

No house, no coming here

Those restrictions were almost enough to foilPeter and Karen Lefantaisie'sIsland house buying plans.

They were living in Ontario, and put an offer on a year-round homein North Rustico last November.

Having never actually seen the home in person, their plan was to drive to P.E.I. this springand to walk through the housebefore closing the deal.

Instead, they had to finalize the sale from Ontarioand becomeIsland residents ahead of time.

Only then were they permitted to drive toP.E.I. They also had to self-isolate for two weeks when they arrivedin mid-May.

The couple saidthey're not surprised others planning a move to the Island are holding off.

"We felt we really wanted the house and it was something we really wanted to come to," said Peter, addingthey moved from a small town in Ontariowith no cases of COVID-19.

"But there's always the fear that you get to the border in another one of the provincesand they say 'thanks but no thanks' and you have to turn around and go back."

Prices stable, mortgage rates low

Lipton suspects given those challenges, out-of-province buyers may be tougher to attract thissummer.

But he saidthere are signs sales among Islanders maypick up.

We've just got toget back on that horse and ride it again. Greg Lipton, P.E.I. Real Estate Association

While house prices haven't loweredthrough the pandemic, he points outmortgage rates have dropped.

Lipton saidthat may entice more peopleto try to get into the housing market this summer.

He said he's also starting to see more listings popup, with some owners looking to offload their short-term rentalsahead of a shaky summer for the tourism industry.

Lipton said he is optimistic it will all add up to a better summer of house sales than some feared.

"It won't be a banner year for anybody. Everybody's going to take a loss," he said.

"But it might not be as bad as you think.We've just got toget back on that horse and ride it again."

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