I stumbled upon something quite interesting this morning; as I was looking at the numbers, I noticed the average size of single family homes sold in Edmonton in November was up significantly. At 1538 square feet, the average size was the highest its been since I started keeping track in 2005. It jumped up nearly 100 square feet from 1453 square feet in October, and 1451 last November.
So of course my next step was to plot it on a chart, and I found a pretty steady increase in the average single family home size sold in Edmonton over the past 7 years. Then I added the average sale price of single family homes and found an interesting correlation: there is an inverse relationship between average price and size of homes sold when the market changes quickly. You can see during the run up in prices in ’06 & ’07 the average size of homes sold fell well below the trend line. This is because homes were less affordable, so people had to settle for smaller homes. Today we have greater affordability, and very low interest rates, making larger homes an option for more buyers.
So, even though the average price of single family homes is on the rise (more about this in a minute) the average price per square foot is declining, so you can get more space for your buck (the average price/square foot was $256 for single family homes and $223 for condos). The story doesn’t end there though…
One of our associates, Cynthia Leal Chiang has noticed that the families she is working with that are buying larger homes are blended or multi-generational families that need lots of space. This is a trend we reported on in May 2011, as multi-generational homes are common in many parts of the world, and are expected to become more common in North America as we attract more immigrants.
The average price of single family homes was $393,154 in Edmonton in November, up from $380k last month and $362k last November. The median sale price of single family homes was $363k up from $350k last month and $340k last year. The average price of condos was $233,190 in November, about the same as last month and up from $222k last year. The condo median was $222k, up from $218k last month and $208k last year.
While prices and sizes were on the rise, the sales of single family homes in Edmonton were declining. There were 521 sales of single family homes in November, down from 557 last year but in the normal range for this time of year.
Although condo sales were up from last year, they were slightly below average. 284 condos sold in Edmonton in November, compared to 242 last year.
As always this is our preliminary report on the Edmonton real estate market, our final monthly report on the greater Edmonton area will be posted when the numbers are released by the REALTORS® Association of Edmonton.