Housing funk

New home building falls while resale home listings soar, causing prices to edge lower

For the first time in many years, home prices in Prince Edward County have started to decline as the market undergoes a post-COVID transformation. Growing inventory and declining demand from cautious would-be buyers are leading some sellers to slash their prices or hold off, while others who may have overpaid during the pandemic and can no longer afford their homes are taking losses, a local real estate agent says. There is little relief on the horizon, as buyers hoping for another interest rate cut will have to wait, with the Bank of Canada announcing earlier this month that it is holding its key interest rate steady at 2.75 per cent.

Linda Middleton notes that, with increasing uncertainty about job stability and the future of federal tariff policies, market activity has largely stalled as buyers adopt a wait-and-see approach. Middleton is a Broker of Record and Owner of Sutton Group, Prince Edward County. She has been a realtor since 1989, initially working in the GTA area before relocating her family to Prince Edward County in 1995.

“Current economic and policy uncertainty has led many buyers to sit on the sidelines, and we don’t really know when they will come back,” she says. “To add to that, buyers require a $113,000 income to manage a $500,000 mortgage. It takes three adults in a household earning the average Prince Edward County income of $41,000 per year to support that mortgage.”

Middleton says that as a result, many of the County’s new builds are being sold to out-of-area buyers, many of whom find their way back on the market in an attempt to make a profit—and many remain sitting vacant.

“Mortgage rates that remain elevated, combined with stagnating wages and rising living costs, have suppressed demand, especially during typical buying seasons. Nothing is predictable anymore,” she says. “During COVID, ultra-low rates and remote work fuelled a surge of buyers into Prince Edward County. Now those buyers have largely entered the market, and many listings remain unsold, leading to a post-boom normalization.”

According to a 2025 Market Report published by ReMax, buyers in Canada are temporarily sidelined, amid tariff concerns, and many are hesitant due to unclear job prospects and economic headwinds.

“Markets don’t like uncertainty, and we’re seeing that sentiment manifest in a quieter-thannormal spring market across recreational and traditional residential properties alike,” says Don Kottick, President, REMAX Canada. “We are optimistic that recreational activity could pick up later this season, but there’s a big ‘but’ looming. Buyers and sellers will need further clarity around Canada’s approach to tariffs now that the election is behind us, before we see a return to more-normal levels of activity.”

According to Teranet’s latest Market Insight Report, many Ontario homeowners who bought during the market peak in 2022 and in 2023, and subsequently sold, lost money on their properties. Approximately 25 per cent of homes purchased for under $1 million in 2022 and resold in 2024 incurred losses.

As of the end of 2024, according to Tereanet, the majority of buyers are multiple property owners. Fifty-five per cent, own just two properties, and another 20 per cent have three. It means that most multiple property owners aren’t aggressively building large portfolios—instead, they’re likely investing passively or holding second properties for personal use.

Another critical shift is homeowners holding onto properties longer. Homeowners now keep their properties for nearly 18 years on average, compared to roughly 14 years in 2015.

“This data seems to correlate with the idea that due to the lack of affordability in Toronto, many choose to renovate their existing property as opposed to moving to a new one within the same area to meet their evolving housing needs,” the report notes.

Closer to home, a report from the Central Lakes Association of Realtors shows the evidence of a soft market. June saw 325 active listings in Prince Edward County, with 37 sales. In the first six months of 2025, there have been 166 total sales in the County against a total of 573 listings, meaning less than one-third of the homes that are going onto the market are selling.

Faye Moxam, a Sales Representative with Chestnut Park Real Estate Ltd., Brokerage, is choosing to remain cautiously optimistic.

“This market requires strategy, persistence, and a lot of behind-the- scenes effort, and the market right now is requiring consistent navigation, as it changes week by week,” she says, adding she has a critical message for both buyers and sellers.

“Negotiations are still happening,” says Moxam. “While the days of intense bidding wars may be behind us, we’re working hard in a more balanced environment that allows for informed decisions and thoughtful deal-making. Real estate in Prince Edward County is still dynamic, evolving, and full of opportunity. The key is staying informed, working with local experts, and being ready to act when the right moment comes.”

Meanwhile, new home building starts have dried up with just 37 new single detached home permits issued in the first six months of 2025—the slowest pace of new homebuilding in over a decade.

An updated forecast by Watsons and Associates predicts an average of 110 new home builds per year until 2051.