Strange things are happening in Alberta… real estate sales and prices are on the rise in October. This is uncharacteristic for our marketplace, as we typically see the market slow down in the fall.
Calgary’s luxury home sales have set a record this year, surpassing even the boom in 2007. We have seen an increase in luxury sales in Edmonton this year, but certainly haven’t set any records. So far this year there have been 213 luxury sales in Edmonton, compared to 169 in the first 10 months of last year and 253 in 2007. So what’s going on?
Bill Bhamra, one of the agents at our office says his buyer clients “are realizing the number of listings coming on the market will start to decrease over fall and winter and want to buy while there is still lots to choose from.” In addition, some of his clients “don’t want to wait till next spring because they feel the listings that come on the market in the spring are usually at a higher price. Even with more inventory in the spring, the buyers have access to fewer properties based on their budget.”
Tracy Vipond, another one of our agents says a few of her clients wanted to take advantage of cash back mortgages, which became extinct on Oct. 31.
Lastly, another one of our agents Bev Hasinoff, says there is definitely a sense of urgency from her buyer clients right now. They see a lot of over priced crap out there, and that makes the decent stuff look very attractive. She’s been in a couple of multiple offer situations this fall. The rental inventory is quite low and rents are on the rise, which encourages renters and investors to consider buying. Many of her clients are getting help from their families or taking money out of RRSPs in order to get into their own home. In addition, the spec home inventory under $400k from builders is currently quite low, and some builders can’t keep up with demand at the moment.
1457* homes sold through the MLS system in Edmonton in October, up from 1265 last October and 1438 last month. When you look at the sales compared to the prediction I made at the beginning of the year, it really seems like October just made up for a slow September. Perhaps it’s as simple as having three more weekdays in October than in September.
The average residential sale price was $324,924 in October, up from $320 last October and $323k last month. The median sale price was $315,000, up from $313k last year and equal to last month.
The inventory of homes on the market dropped to 6,406 in October from 6,956 in September – it is still well below the inventory of over 7000 listings last October.
The number of new listings were right in line with previous Octobers:
*We adjust the residential sales total for the current month to account for unreported sales. Every month 6% of sales on average are not reported to the Association in time for the monthly report. The following month the numbers are updated to reflect the total sales during the previous month. That means the current month always looks worse compared to previous month. Our adjusted numbers are far closer to the actual numbers than those reported by the Association each month (so far on average I am under reporting by 27 sales whereas the association is under reporting by 111 sales each month).