So now, here we are, we want to move back to Canada within a year, after we've saved up a considerable amount of money to buy a house etc.
Include proof of your husband's income and his savings, and state you will be using it to buy a house in Canada. This will help alleviate the visa officer's potential concerns about you not having a job.
Now we want to move back, we have my parents who will helps us get on our feet. They are now in Prince Edward Island. We are wanting to buy a house there and settle there.
Get an affidavit from your parents stating the help they will provide when you move back.
Do I say that I live in Canada and provide my parents address? Or do I give my US address, for which I have my name jointly on all bills and rent, plus a joint bank account here with my husband for the past year, although technically have been out of status.
Don't say you live in Canada when you don't. You and your husband's names are on the lease and the bills, and you have a joint bank account: this is all good proof that your relationship is genuine and should be included in the application.
Can I sponsor my husband outside of Canada and move there with him if he is approved? Or will I have to move ahead of him and work for a period of time?
You can sponsor him while you are living in the US, but you will have to prove you will be moving back to Canada.