Real Estate Sales up 8% in Edmonton in 2013

All things considered, 2013 was a very good year for the Edmonton real estate market. Total residential sales were up nearly 8% over last year, and prices increased moderately showing strength in our market without putting extra pressure on buyers. People moved to the Edmonton area in droves, and the vacancy rate on rental properties fell to the lowest rate we've seen since 2006. Construction of multi-family properties set a new record in 2013, while single family construction increased moderately over last year. Here is our summary of 2013 compared to 2012: 

AnnualMarketSnapshot 1
Annual Market Snapshot

Lets take a look at December, and then I'll give you our predictions for 2014. Sales were strong in December, there were 790 sales - nearly 18% ahead of last year.

Sales
Sales

The average residential sale price was $350,208, up 2.87% from last December. The median sale price was $328,000, up 2.82% from last year.

AveragePrice 1
Average Price

The inventory hit its lowest level in at least 5 years, falling to 3,049 listings.

Inventory
Inventory

2014 Predictions

So what do we have to look forward to this year? The REALTORS® Association of Edmonton made these predictions:

  • The average price for single family homes will increase by 3% in 2014, taking us back to or above peak prices
  • Sales of single family homes will remain steady within the City limits, while sales outside of Edmonton will increase by about 1000 units
  • Average condo prices will increase 2% while sales of condos will increase by 2.5%

CMHC Forecasts:

  • Employment growth in the Edmonton area just over 2%
  • Net migration into Edmonton at about 20,000 (2013 estimate is about 26,000 but hasn't been tabulated yet)
  • Gradually rising average price
  • Construction of single family homes to continue to grow moderately (int's been growing for three years
  • After a very strong 2013, multi-family construction will moderate in 2014

John Rose, Chief Economist for the City of Edmonton forecasts:

  • Alberta will continue to outperform the rest of the country
  • Edmonton's growth will slow in 2014
  • Continued job growth
  • Inflation to pick up

Of course, there are external factors that impact the housing market, that none of us can predict. Mortgage rates have to go up sometime, will 2014 be the year? Will the Federal Government tighten mortgage lending rules again this year? Will consumer confidence in Edmonton be affected by financial situations in other parts of the country, or the world, regardless of our situation here in Edmonton? I don't have a crystal ball, but the predictions made by the REALTORS® Assocation of Edmonton, the Chief Economist for the City of Edmonton and CMHC seem reasonable to me. What do you think? 

About 

Sara MacLennan is the Director of Marketing at Liv Real Estate and a licensed Real Estate Associate. The bulk of Sara’s experience and wealth of expertise lies in on-line technology and marketing both for agents and consumers. Sara is the former National Director for Interactive Marketing for Coldwell Banker Canada where she was responsible for an extensive training program traveling to offices across the country training agents and brokers on marketing and technology. Find Sara on Twitter @edmontonblogger.

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12 Responses to “Real Estate Sales up 8% in Edmonton in 2013”

  1. MattNo Gravatar 15. Jan, 2014 at 9:45 am #

    My prediction is that mature neighbourhood price gains will greatly exceed the price gains of newer subdivisions as the downtown revitalization with the new arena district and RAM picks up steam. Let’s say 5% for houses in mature neighbourhood, and 1% for newer neighbourhoods, for an average of 3%.

    • wsnNo Gravatar 15. Jan, 2014 at 10:25 am #

      Highlands.

    • GMNo Gravatar 15. Jan, 2014 at 11:36 pm #

      What’s RAM?

    • a common guyNo Gravatar 16. Jan, 2014 at 5:29 am #

      You are counting too much on downtown revitalization. It will NEVER be a downtown like Toronto or other big cities and for the same reason you won’t see as much appreciation of prices as many predict.

  2. Karl HungusNo Gravatar 15. Jan, 2014 at 11:19 am #

    Matt’s prediction seems pretty good to me.

  3. Rahul JainNo Gravatar 16. Jan, 2014 at 4:06 am #

    The 2014 prediction you have shown is very clear, you have shared useful information with us. But can you tell us why single family homes will increase by 3% ?

  4. MattNo Gravatar 16. Jan, 2014 at 7:24 am #

    RAM is the new Royal Alberta Museum.

    Due to migration and strong salary and job growth, I would have predicted higher than 3%, perhaps 5% overall, but since new housing is being built at a fairly high level, 3% is more realistic.

    Downtown Edmonton doesn’t need to become like Toronto for mature neighbourhoods to increase 5%, the downtown is starting at such as a low level, any improvements will yield disproportionate gains in housing prices in mature neighbourhoods.

  5. JohnNo Gravatar 16. Jan, 2014 at 1:00 pm #

    Matt,

    Not sure why everyone is discreditting your advise, especially when the mayor is advocating that Edmonton’s downtown is going in the direction of Vancouver, Toronto and other major cities around the world.
    Builders are taking out $300,000-$350,000 lots and building 2 houses and selling them for 1.2 million. People might say crazy spending $600,000 on a small brand new house in the city, but they are selling. Eventually those land costs have to go up, since the builders are making a lot of money at these prices.
    An artifcle in the Calgary Herald has a realtor who is now a builder making $160,000 on each house he builds.

    • wsnNo Gravatar 17. Jan, 2014 at 10:13 am #

      Vicky Homes has recently sold their show home at about $2.5M (or was that $2.6M, you get the point). The lot was in Riverpointe of Windermere, and costed them about $350k when they bought it. RIght now, the same kind of lot is roughly $400k~$450k.

      That may be an extreme example. But it’s common place to sell a $1.2M~1.5M house (with a $350k lot) in Windermere. The whole thing is so much simpler (and literally safer, think about site management) than building two $600k in downtown. If a double lot can be had for $350k in downtown, that says much about the desirability of the area.

  6. a common guyNo Gravatar 17. Jan, 2014 at 10:30 am #

    WSN whoever has bought that house is a fool (I had been inside); the builder has easily made $1M on that.

    • wsnNo Gravatar 17. Jan, 2014 at 11:54 am #

      I heard about it from friends. But it got sold before I can take a look.

      Whether a fool bought it or not, is beyond the point. I mean, someone must be a greater fool to spend $600k in Alberta Ave. If I were a builder, I would build on new lots. That’s way, I can avoid many of the headaches of downtown infill and still make as much, if not more, money.

      • GMNo Gravatar 17. Jan, 2014 at 12:51 pm #

        I once asked a builder why they only make huge monster houses now. Nobody builds regular-sized houses any more.
        His answer: The extra cost to build 3,000 sq ft as opposed to 1,500 is negligible. They’re there anyway, they’ve already poured the foundation. All they need is a bit more wood and a couple more windows. But the price they can charge for the extra square feet is huge. So it makes much more sense to build big. And so they do.