Shortage of Listings in Greater Edmonton Area Creates Tight Real Estate Market in February

The real estate market in the Greater Edmonton Area is heating up, market stats are up across the board compared to last year, except for listings and inventory. Increased demand an lower supply has lead to increasing prices and frustrated buyers. 

MarketSnapshot
Market Snapshot February 2014

There were 1189* residential sales in the Greater Edmonton Area in February, up 11.85% from last February. The sales to new listings ratio is about 10% higher than the norm for this time of year, at 61%.

Sales
Edmonton Area Residential Sales

The average price of residential real estate is on the rise in the Edmonton Area. In February, the average residential sale price was $359,973, up 5% from last year, and the highest overall average on record.** The median sale price was $338,250, up 3.5% from last year.

Average
Edmonton Average Residential Price

The inventory of homes on the market remains well below recent years and sits at 3,906, down -6.6% from last year. The low inventory is due to both strong sales, and fewer new listings. More on that in a moment.

Inventory
Residential Listing Inventory

There were 1955 new listings in February in the Greater Edmonton Area, down 2% from last year. With the sales and prices up significantly from last year, I'm not sure what is holding potential sellers back from listing their properties. Granted, not everyone pays as close attention to the market as the readers of this blog, here is what some Liv Real Estate Associates said to explain low the listing activity:

"I have some clients interested in listing but  the waiting for the snow to disappear as they want to show off their backyards. From my own experience, I was planning to sell one of my investment properties, but decided to rent because of tight rental demand. Also, people are keeping close eye on the Calgary real estate market and are hanging on in hopes that we might see similar increase in demand and pricing. This year will definitely be interesting." Bill Bhamra.

"My clients are either renting out or waiting for the market to go up more. They figure even if prices go up and the home they want to buy is more expensive, their own home will go up in value and it will balance out. I also have clients renting out their properties because they have good tenants and income, and are building equity." Cynthia Leal Chiang

"I have a few clients waiting to list. One reason is nerves about being able to find something once they sell but don't want to have to go in with an condition subject to sale as they know it will hurt chances on the purchase. Catch 22. Others know they may face the possibility of a quick possession and don't want to move in the winter. Essentially I think that it hasn't quite hit home owners yet that now IS a good time to sell."Beverley Hasinoff.

So, it would seem there are lots of reasons not to list your home now, even when the market appears to be screaming "now is the time!" Based on previous years, the listing activity should seriously pick up this month, we'll have to wait and see. It appears another external factor has been thrust upon our market with some recent news from CMHC. I'll talk about that in a separate post though as this has gone on way to long.

NewListings
NewListings

*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 months. For example, in January they reported 820 sales when there were actually 902, about 10% off.

**The overall average residential sale price record was set in July, 2007 $354k. However, the boundaries included in the stats in 2007 were different, as they included all listings from the REALTORS Association of Edmonton. As of last year, the boundaries were changed to only include sales in the Edmonton CMA as identified by CMHC which includes the City of Edmonton and the Counties of Leduc, Parkland, Strathcona, and Sturgeon and the municipalities therein. Since the stats were only worked backwards for 5 years under the boundaries, this is not an accurate comparison, but it's interesting none the less.

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 “Shortage of Listings in Greater Edmonton Area Creates Tight Real Estate Market in February”

  1. Inspector GadgetNo Gravatar 04. Mar, 2014 at 4:25 pm #

    I know quite a few people renting out places that are in a negative equity position. They bought neat the top of the last boom and want to wait for a new record high. They simply refuse to sell at a loss. When you factor is commissions the price has to be considerably higher than they bought for. Ultra low interest rates and tight rental market make positive cash flow easier strengthing the urge to wait.
    Another is the massive group of owners who bought before the ramp up. Very little of their own skin in the game of you paid very little 15 or more years ago… So why not keep waiting.
    Combo of people that paid too much and others that paid too little are two reasons keeping owners from being motivated to sell. Lots have that big number from spring 2007 stuck in their heads and await their next opportunity to get it.

    • 123kidNo Gravatar 05. Mar, 2014 at 1:42 pm #

      IG

      your grammar is atrocious and the syntax errors make it near impossible to read without punching in a wall. I cannot discern what you are trying to conclude on next to you being bearish on the YEG real estate market.

      There is always flux and variability in the YEG real estate markets. To consider instant short term returns here is living in lah lah land.

      The natural trend line for gains off real estate has been a positive slope with SUSTAINED gains made over the long term. Now… you may start typing away/bragging (like you did in your previous post) and letting us know how well the markets outside of real estate have done. If you do, please state it in pure plain KISS English so I don’t have to go patch up and paint my walls.

    • TonyNo Gravatar 07. Mar, 2014 at 9:14 am #

      Most condos and apartments are still about forty percent lower than the peak back in 2007. I don’t see anything changing in the next 20 or so years although the rest of the country could tank and Edmonton could flat line during that period of time. America has saw their dead cat bounce in housing and it looks like it’s all downhill for them and their economy.

  2. CastledownsNo Gravatar 04. Mar, 2014 at 9:59 pm #

    I’m trying to list one of my properties but it’s just too damn cold to make it showable. In the mean time my agent is telling me that buyers are calling back to cancel other showings because it’s too cold.

    • GMNo Gravatar 04. Mar, 2014 at 11:54 pm #

      If I really wanted to buy a house and needed to find a place to live, why would the cold stop me from looking at properties? I never understand this explanation.

    • Sara MacLennanNo Gravatar 06. Mar, 2014 at 10:01 am #

      If a buyer is out looking at -20, they’re serious. If they’re cancelling because it’s too cold…. well… not so serious. We have all kinds of people looking and have trouble setting up showings because everything is already pending.

      • GMNo Gravatar 06. Mar, 2014 at 11:23 pm #

        Just out of curiosity, what percentage of your clients will cancel because of cold weather? Or for what you suspect the reason they cancel is because of cold weather?

        I would imagine you’d be able to tell very quickly which house shoppers are serious and which are not by whether they cancel because of the weather.

        • Sara MacLennanNo Gravatar 07. Mar, 2014 at 12:05 pm #

          Very few. If possible we meet with our clients before we start showing them homes, so we can get a sense of what they’re looking for and if they’re inexperienced explain the home buying process. We get a pretty good sense of their level of interest at that time.

  3. JoJoNo Gravatar 05. Mar, 2014 at 9:35 am #

    I’m planning to list one of my house in the Brintnell area this month. I need it sold by August. It’s under 400k. What’s the average listing time for something in that area?

    • Sara MacLennanNo Gravatar 07. Mar, 2014 at 12:10 pm #

      The overall average for the market right now is 54 days, but that really doesn’t tell you much. We could give you a much better estimate if we did an evaluation on your home, had a look at the local competition and demand. We could determine the best time to get your home on the market once we had a look at your home and your competition. Contact us anytime for more information.

  4. Inspector GadgetNo Gravatar 05. Mar, 2014 at 7:13 pm #

    Again my apologies for getting used to this new phone. However your glass house really is quite hilarious.