Happy Canada Day!
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 495 (499, 542, 617)
# Sales: 355 (318, 334, 320)
Ratio: 72% (64%, 62%, 52%)
# Price changes: 328 (301, 336, 349)
# Expired/Off Market Listings: 143 (175, 148, 275)
Net loss/gain in listings this week: -3 (6, 60, 22)
Active single family home listings: 3195 (3177, 3178, 3147)
Active condo listings: 2148 (2162, 2144, 2099)
Homes 4-week running average: $406k ($407k, $404k, $404k)
Condos 4-week running average: $242k ($246k, $246k, $242k)
Well, sales jumped this week! Turns out the busiest week of the year so far comes at the end of June, after the new mortgage rules came down from the Fed last week. My guess is we will see slightly elevated sales for the next couple of weeks while people try to get in the market with 30 year amortizations. If you're considering jumping in before the 30-year mortgage dies, make sure you do the math before you jump, you may be better off waiting a month or two.
CMHC released their monthly report on housing starts this morning which unveiled some interesting tidbits on what is going on with condos in Edmonton. While single family homes seem to be where all the action is in terms of resales in Edmonton, builders seem to be quite focused on condos. In fact, in May condo starts jumped 62% compared to last year (749 units, 449 of which were apartment style condos). For the year so far, condo starts are up 51% over last year.
Not only were condo starts up, completions were up as well (496 compared to 192 last year). However, there is not a glut in inventory - 79% of condos were "absorbed" at completion and the inventory of completed condos dropped by 10%. This means there is currently more demand for new condos than resale in Edmonton. New condo inventory is still higher than new single family inventory though, so don't get too excited about condos, demand for single family homes in Edmonton is higher than condos in all categories.
Have a great weekend - Happy Canada Day!