April brings a shower of sales to the Edmonton real estate market

Once again single family home sales were the real estate story in Edmonton in April. While residential sales for the region look like they were flat in April (we'll know for sure when the REALTORS® Association of Edmonton releases their official report in the next few days), single family home sales in Edmonton soared. 854 houses sold through the MLS® system in Edmonton in April following a similar track to 2005, and the most we've seen since the boom years in '06 and '07. 

Unlike 2010 where sales quickly ran out of steam after March, and in 2011 where sales dropped in April, we are now seeing activity building and not dissipating. From the street level, we are seeing tons of activity and the market seems even busier than the sales would suggest, especially in terms of the number of offers written, and the number of multiple offers we are dealing with.

AprilSFSales
Edmonton single family home sales


Condo sales improved in Edmonton in April as well, eeking ahead of last year's total (397 sales in April '12 compared to 376 last year). When competition for single family homes increases, so do prices, and condo sales tend to improve as buyers see more bang for their buck in the condo market. So we do expect to see an improvement in condo sales and prices in the short term.

AprilCondoSales
Edmonton condo sales


Prices were up across the board in Edmonton in April. The average price of single family homes was $394,673 in April compared to $389k last month and $381k last year. This is the highest average price since June of 2010 and the highest average for April since 2008. The median price for single family homes was $367k in April compared to $353k last month and $349k last year.

The average price for condos was $234,538 in Edmonton in April compared to $230k last month and $228k last year. The median sale price for condos was $223,500 compared to $214,800 last month and $215,500 last year.

AprilAvg
Edmonton real estate prices


The average price per square foot has followed the same pattern as overall average prices so far this year.
 

AprilSqFt
Edmonton price per square foot


As always, this is our preliminary report on the Edmonton real estate market, and our final report will follow when the final numbers are released by the REALTORS® Association.

About 

Sara MacLennan is the Director of Marketing at Liv Real Estate and a licensed Real Estate Associate. The bulk of Sara’s experience and wealth of expertise lies in on-line technology and marketing both for agents and consumers. Sara is the former National Director for Interactive Marketing for Coldwell Banker Canada where she was responsible for an extensive training program traveling to offices across the country training agents and brokers on marketing and technology. Find Sara on Twitter @edmontonblogger.

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5 Responses to “April brings a shower of sales to the Edmonton real estate market”

  1. Inspector GadgetNo Gravatar 01. May, 2012 at 4:44 pm #

    There are all those inpections your buddy was doing I guess!

    I have been hearing from lots of young’uns at work lately….lots of house shopping and buying going on, no question. Most have locked in pre approvals with low rates that need to get spent soon or be lost. As I have mentioned before here some of those same people are sitting on deep underwater real estate from the last boom. Some are keeping the negative cash flow negative equity condo, AND upgrading their primary to take adantage of these low rates.

    One factor in the ever creeping price issue is likely that debt tolerance contines to grow as well. The list of must haves just keeps getting longer so new builds continue to get more expensive despite the cost per foot being lower. This of course is just a theory based on observation….

    Interesting times to say the least. I still think this trend is being overwhelmingly supported by debt, especially here in Alberta. Of course, I could be wrong….

    • Intotheblue12No Gravatar 02. May, 2012 at 9:10 am #

      Real estate is always supported by debt – debt the banks are comfortable that they can get their principal paid back plus interest and minimize their risk. It is in the banks best interest to let people borrow as much as possible that they can reasonably pay back. As long as there is not some massive world economic event that would have a big impact on the markets, I don’t see real estate in Alberta having it’s big crash that some people are hoping for. The banks have encouraged spending, and will reap the rewards over the next 10-15 years by diligently raising rates. They will search for that optimal friction point where they are sucking consumers dry who are highly indebted, but not enough that it would completely stall economic activity.

      When looking at real estate you also have to think of the inflation impact as well. There may be nominal gains in housing but they may not be as real once you factor in the inflation effect. It would be interesting to see some data on how big of an impact inflation really has on real estate prices. I know inflation for the most part is grossly understated by the Bank of Canada based on their methods of calculation.

      • GMNo Gravatar 02. May, 2012 at 6:01 pm #

        That’s the beauty of it!

        The gov’t understates inflation so they can keep the interest rate lower than it should be.

        That works in the house-owner’s favour by boosting up the price of their house while keeping the cost of the mortgage down. Over time this takes care of the debt, leaving them with a house that is worth a lot more than they paid and having no mortgage!

  2. GMNo Gravatar 02. May, 2012 at 9:07 am #

    It’s heating up out there. Bidding wars are back!

    Look for reports of buyers wrestling each other on front lawns soon.

    • DaBullNo Gravatar 02. May, 2012 at 9:51 am #

      “Look for reports of buyers wrestling each other on front lawns soon.”

      No…. According to Garth, that’s just house horny couples getting a head start on a family. :-p