Bigger Homes Sold in Edmonton Keep Average Prices High
Our preliminary monthly report on the Edmonton real estate market revealed some interesting stats. The average size of single-family homes sold in Edmonton reached it’s highest point since I started tracking the market in 2005 (1,573 square feet). Unlike most parts of the country, the average size of homes sold in Edmonton has been trending up for years, and this year is no different.
The increasing size of homes sold at least partially explains the stable average prices in Edmonton while sales have been dropping. While the value of most properties has declined, buyers still qualified for the same amount of money (up until the recent mortgage rule changes), and were able to buy larger properties, keeping the average sale price stable. Now that most buyers will qualify for a lower amount, the average price should start to decline, except when luxury sales spike, as they did this month.
As expected, single-family home sales were on the low side in November, but were similar to the levels we saw from 2009 to 2012. 523 homes were reported sold in November, down 14% from last year.
Condo sales were also low in November; the number of condo sales reported in November was down 24% from last year to 230 sales.
The average price of single-family homes in Edmonton jumped in November, due to a large number of luxury sales. The average sale price was up 3.9% to $438,748, and the median price was down 1.3% to $385,000, year over year. There were almost twice as many sales over $750k this November, compared to last year, including one for $3million. When you consider there were 14% fewer sales overall, and 29 luxury sales compared to 15 last November, the increase in average price is explained. I think the median price gives a truer representation of what’s happening with single family home prices in Edmonton at the moment than the average price.
The average price of condos sold in November was down 4.5% to $242,681 and the median price was down 8.6% to $214,000.
The average price per square foot for single family homes was almost unchanged at $279 (down $1) and for condos was down 1.7% to $237.
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.