Every once in a while I do an analysis of the different areas of Edmonton, to see where homes are selling and where they are taking a little more time.
The absorption rate is the number of listings currently on the market, divided by the number of sales in the past 30 days; it tells you how many months it will take to sell the current inventory if the rate of sales stays the same.
Below are the results:
The overall absorption rate is currently 8.4 months, which makes it easy to see which areas are above average and which areas are below.
The absorption rate is longer than last time I did an analysis (August) in all areas except one. That’s expected since we are late in the year. The one area that improved was the South East which includes neighbourhoods such as Avonmore, Bonnie Doon, Capilano, Forest Heights, Hazeldean, Holyrood, King Edward Park, Ritchie, Terrace Heights and others. This area had the fastest absorption in the whole city at 4.4 months which seems to be due mostly to a decrease in new listings (sales remained about the same).
Sherwood Park, St. Albert and Spruce Grove all did better than Edmonton, but Stony Plain continues to have the longest absorption rate of any area.
The second longest absorption rate is in the central area, likely due to the large number of new condos coming on the market.
The biggest change in rates was in the University area – this area tends to sell very well in the summer when people are looking for student housing and cools off at other times of the year.
The absorption rate for condos slowed more than for single homes, and just like last time, the higher the list price, the longer the absorption rate.
