The REALTORS® Association of Edmonton released the monthly stats today calling the housing market "relaxed."
“Financial incentives, changes to mortgage qualifying rules and the threat of increasing mortgage rates caused the local market to peak a little earlier this year,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Buyers, sellers and REALTORS® can all relax and enter a sales transaction without pressure,” said Westergard. “That does not mean that you can delay making or accepting an attractive offer because 50-60 homes sell each day and you would hate to see your dream home snapped up by someone just a little more eager to live there.”
The average residential sale price remained almost unchanged at $340,192 (compared to $339,314 last month and $326,332 last year).
Edmonton MLS® Average Residential Sale Price
Sales were down from last month and last year, in fact sales were the lowest they’ve been in May in at least 6 years:
Edmonton MLS® Sales
Single family home sales in Edmonton continued to be the strongest part of the market, outperforming condos and sales outside the city by a large gap:
Edmonton MLS® Sales by Type
Correction – New listings were lower in May than in April, we are still seeing more new listings than normal, but less than we saw in 2007 and 2008.
New Edmonton MLS® Listings
Inventory is continuing to rise giving Edmonton home buyers more choice and more negotiating power:
Edmonton MLS® Inventory
At some point increased supply, lower demand and higher interest rates will cause prices to come down in Edmonton.
I'm curious about the outside Edmonton sales, they look to be very signifigantly lower then they have been in the past. I am assuming the bulk of these sales would be in Sherwood Park and St. Albert (as they are the largest outside Edmonton areas).
Is it that people bought in these outlying communities due to a housing shortage in Edmonton and now supply in Edmonton has caught up with development in the 'burbs mitigating the need to move to the far east or far north? I noticed that these communities also had more signifigant price decreases then most edmonton suburbs during the recession (particularly south edmonton) and am curious as to why those communities are now seemingly less desirable?
I'm curious about the outside Edmonton sales, they look to be very signifigantly lower then they have been in the past. I am assuming the bulk of these sales would be in Sherwood Park and St. Albert (as they are the largest outside Edmonton areas).
Is it that people bought in these outlying communities due to a housing shortage in Edmonton and now supply in Edmonton has caught up with development in the 'burbs mitigating the need to move to the far east or far north? I noticed that these communities also had more signifigant price decreases then most edmonton suburbs during the recession (particularly south edmonton) and am curious as to why those communities are now seemingly less desirable?
I have never looked at the prices, but I have heard that St. Albert prices are quite expensive compared to other cities – is this true?
You gotta figure if you're chalk full of investment properties, you're starting to get a little nervous. I guarantee the knuckles are white! Sales are falling, inventory is rising – it's going to be an interesting summer and fall!
Relaxed ??? What a way to describe the market.
Relaxed as in “Chilled”.
I wouldn't say homes are too much more in St. Albert than Edmonton. However, if you factor in property taxes, then the prices of homes in St. Albert are significantly more expensive, especially compared to Edmonton. My parents own a 4 level split in west Edmonton built in the 80's with around 1800sq. ft. and just got their assessment for $2700. My brother-in-law purchased a 1850sq. ft. new home on a 28 ft. lot last year in St. Albert and his assessment just came in at $4300. Crazy.
I just can't believe how much the market has dived in Grande Prairie. You can get a good sized two-story house for under $300k now.
That is an excellent point Traveller. I haven't commented yet because I haven't had a chance to actually compare prices between the cities but I will work on something for a future post.
Great market report, Edmonton has been named one of the top places to invest in real estate. Probably a great time for buyers to get into the real estate market.