With the sales results for September in, we can now see that Edmonton real estate had a very strong third quarter. We saw near record level sales of single family homes in Edmonton in July, August and September this year.
I think Gary Lamphier of the Edmonton Journal best explains what is currently happening with real estate in Edmonton. He says it all comes down to demographics - Edmonton is growing, and the more people that move here, the more homes we need to house them.
Canada’s population grew by 1.2 per cent in 2012, versus just 0.8 per cent in the U.S., and 0.2 per cent in the eurozone. Japan’s population, on the other hand, has shrunk for six straight years. The big reason? Immigration. Newcomers accounted for fully 60 per cent of Canada’s population growth last year, he (Stefane Marion, chief economist and strategist at Montreal-based National Bank) says, far more than the U.S. or Europe. What’s more, 55 per cent of those newcomers are between the ages of 20 and 44, when many are launching careers, getting married, starting families, and yes, buying new homes.
Looking ahead, Marion says he expects those demographic trends to continue over the next five years. In the key 20-to-44-year age cohort, he expects India to lead all nations in population growth, at seven percent, followed by Canada, at four per cent...
“Alberta would be just behind India, at six per cent. So that shows you how potent this growth is for Alberta. Alberta actually has the dynamics or properties you’d normally see in emerging economies.”
Backing up this point of view, the government's chief economist called Alberta's growth "astronomical" last week, with our population recently reaching 4 million. Our growth rate in the second quarter was about three times the national average, increasing by over 40,000 people.
The province hasn’t seen growth like this since 1982." Kate White, chief economist for the Alberta government.
Alberta has the lowest median age in the country, at 36.1 years - not only is our population growing from immigration, but we are experiencing a mini "baby boom" in the province as well. Our population hit 2 million in 1978, 3 million in 2000, and 4 million this year - Alberta Finance Minister Doug Horner said he estimated the province is on pace to reach the five-million mark in fewer than two decades.
So, this all has a lot to do with the strong real estate market we are currently experiencing in Edmonton. There were 762 single family home sales last month, compared to 634 last year and 823 last month.
There were 400 condo sales in Edmonton last month, compared to 312 last year and 463 last month.
Single family homes sold on average for $410,454 in September, up from $382k last September, and about the same as last month. The median sale price for single family homes was $375k in September, up from $355k last year and the same as last month. Condos sold on average for $242,179 in September, up from $222k last year and down from $244k last month. The median sale price for condos was $226k in September, compared to $219k last year and $230k last month.
The average price per square foot for single family homes was $272 in September, up from $258 last year and $269 last month. For condos, it was $234 in September compared to $216 last year and $236 last month.
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. However, due to personal reasons, there may be a delay in our final report, I'll do my best to get it posted on time.