Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 617 (562, 488, 551)
# Sales: 320 (322, 261, 331)
Ratio: 52% (57%, 53%, 60%)
# Price changes: 349 (327, 260, 313)
# Expired/Off Market Listings: 275 (272, 118, 130)
Net loss/gain in listings this week: 22 (-32, 109, 90)
Active single family home listings: 3147 (3044, 3058, 3017)
Active condo listings: 2099 (2057, 2084, 2017)
Homes 4-week running average: $404k ($403k, $402k, $400k)
Condos 4-week running average: $242k ($243k, $237k, $237k)
Realistically sales for the Edmonton real estate market should be substantially higher, but the recent birth of our twins and a torn meniscus in Sheldon's knee has slowed the Edmonton market down considerably. All kidding aside, things are quite active as we are most likely just past the peak of sales for the year. The weekly sales and listings graph demonstrate that both categories are well with in previous norms for Edmonton.
It is still a little challenging for buyers in the high demand price ranges of Edmonton for single family ($300-$400k). If you don’t want to deal with multiple offers I recommend that you hold off your search (although this will not guarantee that you won’t find yourself in that situation down the road). Multiple offers are always challenging for first time buyers, and we have found they tend to base their offer on the list price of the home rather than the value of the home, potentially passing up a very good property at a fair price. What is even more troubling is if they find themselves in the same situation again, they often base their offer on winning the negotiation and not the value of the property and are therefore vulnerable to over paying.
If you have a home on the market in Edmonton that has not sold it is probably time to re-evaluate your asking price. If you are basing your decision on sales that took place in previous months, it is quite possible the value as we head in to the second half of the year will be different based solely on seasonality.
Also of interest this week is a report from CMHC on housing starts. It shows that single family home starts are up 11% in Edmonton while condo starts are up 57% so far this year, compared to last year. Interesting that condo starts have increased so much when all the demand seems to be for single family homes on the resale market.
“Growth in multi-family construction is supported by an economy characterized by an expanding labour market, rising incomes, and higher levels of net migration,” said Christina Butchart, CMHC’s Senior Market Analyst for Edmonton.
Have a great weekend!