Prices Remain Stable in Greater Edmonton Area While Sales Stay Slow
The REALTORS® Association of Edmonton released their monthly report on the Greater Edmonton Area real estate market today saying:
“We expect to see listings and sales slow as winter approaches. We may begin to see the effects of slight downward pressure on prices, but do not expect to see any drastic movement as our market continues to remain stable,” said Steve Sedgwick, Chair of the REALTORS® Association of Edmonton. “Sellers can expect to wait a little longer than previous years for their property to sell.”
Our market snapshot shows the inventory is still well above previous years, and even though the pace of new listings seemed to be slowing over the past few months, it almost matched the 8 year high we saw last September. We don’t need more listings in the GEA right now.
Of course, there were also the new mortgage rules that were announced yesterday, and they are likely to have an impact on the market in the coming months. The biggest impact of the new rules is likely to be the reduction in the amount of money most home buyers will be able to qualify for, starting Oct. 17. One of the things that has been keeping the average price of homes sold in Edmonton high compared to previous years, is that buyers are buying larger homes now for less money than they’d have had to pay last year, since they still qualify for the same amount. Our friend Gord at First Foundation Mortgages has an interesting take on the new mortgage regulations and who they will impact the most.
Sales were right about where they usually are in September, but still behind the past couple of years. 1419* homes sold in the greater Edmonton area in September:
The average price was up 1.4% from last year to $373,926 while the median price was almost unchanged (up 0.9%) at $356,000.
Inventory was up nearly 11% from last September at 7,857 listings.
After seeing a widening gap between new listings last year and this year for the past few months the number of new listings nearly caught up; there were 2,739 new listings in September, down 1.4% from last year.
*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 previous months. Our adjusted numbers are far closer to the actual numbers than those reported by the Association each month.
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.