Average Real Estate Price Jumps in November in Greater Edmonton Area
We often see an increase in average prices at the end of the year in the Greater Edmonton Area and November was no exception. Demand for real estate remains strong, and even with a jump in new listings, strong sales have kept inventory lower than previous years. The REALTORS® Association of Edmonton released their monthly report on the market today:
“The housing market has been very strong and robust this year. We are expecting to see continued growth in housing sales for some time, but at a slower and more stable pace,” said REALTORS® Association of Edmonton President Greg Steele. “It has been a great year for Real Estate. As we do every year, we expect things to cool off as the temperature drops, but we always have new homes listed and sold over the winter months. People move when life happens, which does not necessarily correlate with warm weather.”
There were 1205 residential listings sold through the MLS system in the Greater Edmonton area in November, which is right around where you’d expect them to be based on the chart below. Sales were up 7.8% over last year, and dropped off from October as we normally expect.
The big surprise this month is the jump in the overall average residential sale price, it’s up 8.5% over last November, and 4.3% over last month. While we do often see average prices climb slightly at the end of the year, they don’t usually peak in November. The overall average residential sale price was $381,371, and the median was $357,500 (up 10% over last November).
It turns out luxury sales are really on the rise in the Greater Edmonton area. So far this year, 433 homes and condos have sold for over $750,000, compared to 318 last year. This November there were 30 sales over $750,000, up from 24 last November, but down from 37 in October. On a percentage basis, luxury sales made up 2.4% of sales in November and 2.5% of sales in October, while sales under $200k made up 9.4% of sales in November and 10% of sales in October. I’m no statistician, but neither high end nor low end sales seem to account for the month over month jump in the average price.
The inventory of homes available at the end of the month continued it’s annual decline, dropping to 3,906 listings, down 3.5% from last year.
Demand kept inventory in check, even with the number of new listings jumping 15% over last November to 1418.
Overall there are a couple of points worth considering about the real estate market in Edmonton. First, although the number new listings has been in the normal range, they have been well ahead of last year for months. With prices on the rise we should see more listings start to come on the market – if demand doesn’t keep up in the new year we could start to see an over supply. Second, as everyone seems to be acutely aware, oil prices have been falling for months and have now reached the range where people start to freak out. While some are concerned the provincial economy is about to collapse along with oil prices, others are suggesting we all just hang tight, the pain will likely be short lived. We’ll just have to wait and see what happens there.
About Sara MacLennan
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.