Despite higher interest rates, the Edmonton real estate market is still strong and affordable. Compared to August 2022, we are seeing stronger sales, lower inventory and prices are holding steady.

Realtors Association of Edmonton, September 1, 2023: Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for August 2023 hit 2,250, increasing 21.8% compared to August 2022, dropping marginally from July 2023 by 3.1%. New residential listings were up 3.7% year-over-year from August 2022, and increasing 0.3% from July 2023. Overall inventory in the GEA was down 15.5% from August of last year, and down 2.7% from the previous month.

For August, detached unit sales were up 16.8% from August 2022 and decreased 5.8% from July 2023 at 1,311. Semi-detached unit sales were down 11.6% month-over-month but increased by 12.9% from this time last year. Row/Townhouse unit sales were up 50.0% from August 2022 and up 23.2% from July 2023. Apartment Condominium unit sales had an increase of 25.1% from August 2022, while noting a decrease of 6.9% from the previous month.

Total residential average prices came in at $397,811, a 0.5% increase from August 2022, and a drop of 2.7% from July 2023. Detached homes averaged $495,005, noting a 2.1% year-over-year increase, but a 1.4% decrease from July 2023. Semi-detached sold for an average of $373,175, resulting in a 4.3% increase year-over-year, and a decrease of 1.5% from the previous month. Row/townhouse prices were up 3.6% from August 2022 and down 4.1% month-over-month, selling at $253,345. Apartment Condominium average prices hit $192,815 showing a decrease of 1.0% from last month and an increase of 0.5% from August 2022.

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $380,600, resulting in a decrease of 0.3% from July 2023, and a drop of 3.9% from August 2022.

“It’s not unusual to see a lot of activity in the market before we head into the cooler months, but it seems that buyers are sending a clear message that smaller, more affordable properties are what they want right now,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “Unit sales for all categories are up from last year, but Row/Townhouses were the clear winner selling 50% more units than the same time last year and jumping 23.2% from the previous month. Condominium Apartment units continued to perform well, with units selling 25.1% better than August of 2022.”

Detached homes averaged 45 days on the market, increasing one day from July 2023. Semi-detached homes averaged 42 days on the market, increasing seven days from the previous month, with row/townhouses averaging 44 days on the market, an increase of three days month-over-month. Apartment condominiums averaged 56 days on the market, showing a two-day decrease from July 2023. Overall, all residential listings averaged 46 days on the market, increasing by four days year-over-year and one day from July 2023.

Edmonton Forecasting Strong Summer Sales

After a few months of holding rate hikes, the Bank of Canada has announced a 25 basis-points increase to its benchmark interest rate, creating a serge in home and condo sales.

Historically, rate hikes stimulate sales activity as buyers rush to secure properties before the rates rise further. It's not uncommon for there to be a spike in sales during the months following a rate hike as buyers try to take advantage of the lower rates available before the increase. 

Considering that the rest of Canada is facing a situation of limited supply and strong demand, Edmonton presents attractive opportunities for homebuyers. With Alberta's higher job growth and intermigration gaining momentum, Edmonton's home sale numbers are forecasted to be robust throughout the summer.

While these trends suggest a positive outlook for Edmonton’s real estate market, conditions vary from property type, price range and location. It’s always advisable to stay informed and consult with a local real estate professional for the most accurate and up to date information regarding opportunities in Edmonton.

If you or someone you know is thinking of making a move, please feel free to reach out for a complimentary market evaluation with a home preparation strategy that can set you up for success.

Have a wonderful summer!

Alison Murray

Realtors Association of Edmonton Statistic Summary , June 2, 2023:

"Edmonton Market Sees Strong Year-Over-Year Growth in Detached Average Price"

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for May 2023 hit 2,719, decreasing 6.8% compared to May 2022 but increasing 34.4% from April 2023. New residential listings were down 17% year-over-year from May 2022, while also noting an increase of 14.2% from April 2023. Overall inventory in the GEA was up 10.2% from May of last year, and up 2.6% from the previous month.

For May, detached unit sales were down 9.6% from May 2022, but saw an increase of 37.7% from April 2023 at 1,692. Semi-detached unit sales were down 12.8% year-over-year but increased by 38.4% from April 2023. Row/Townhouse unit sales saw increases in both year-over-year and month-over-month, noting improvements of 4.1% and 27.8% respectively. Apartment Condominium unit sales also had increases of 3.7% from May 2022 and 22.2% from the previous month.

Total residential average prices hit $420,507, a 1.5% decrease from May 2022, and an increase of 2.8% from April 2023. Detached homes averaged $512,338, a 1.2% year-over-year increase and an increase of 2.3% from April 2023. Semi-detached sold for an average of $381,968, resulting in a small 0.7% decrease year-over-year, but saw an increase of 0.8% from the previous month. Row/townhouse prices were down both 4.3% from May 2022 and 3.1% month-over-month, selling at $253,417. Apartment Condominium average prices hit $193,218, showing decreases of 0.3% from last month and 8.1% from May 2022.

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $378,800, resulting in an increase of 0.5% from April 2023, but a decrease of 8.4% from May 2022.

“We’ve certainly seen the real estate market come to life in the month of May,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “Although small, there were improvements in the year-over-year detached average prices as well as row/townhouse and apartment condominium unit sales.

Detached homes averaged 40 days on the market, a two-day decrease from April 2023. Semi-detached homes averaged 37 days on the market, decreasing four days from the previous month, with row/townhouses averaging 42 days on the market, a decrease of three days month-over-month. Apartment condominiums averaged 56 days on market, showing no change from April 2023. Overall, all residential listings averaged 42 days on the market, increasing by 13 days year-over-year and dropping two days from April 2023.

June 1st The Bank of Canada has raised its interest rate by 50 basis points, marking its second consecutive oversized hike – and third overall increase this year – as the central bank grapples with inflation that currently sits at a 30 year high. The 0.5% increase to that benchmark rate brings it to 1.5%, the latest step in the Bank’s efforts to get consumer price growth under control.

There are still many great opportunities for sellers with strong sales and good selection for buyers with interest rates still around 4%.  The market is constantly changing and if you, or anyone you know are thinking of making a move, please reach out to me with any questions to help you  get prepared. 

Alison Murray 
780-619-9812
alison@infoedmonton.ca

Housing Market Sees Cooling in the Month of May

Realtors Association of Edmonton | June 2, 2022: Total residential unit sales in the Greater Edmonton Area (GEA) real estate market decreased 1.6% compared to April 2022, yet saw a year-over-year increase of 4.4% from May 2021.

For May, single-family home unit sales were down 3.4% from May 2021, but increased 1.9% from April 2022 at 1,736. Condo unit sales increased 28.6% from May 2021 but were down 9% from April 2022. Duplex/rowhouse unit sales were up 5.8% year-over-year yet decreased 1.4% month-over-month.

Single-family homes averaged $492,037, a 5.7% year-over-year increase and a month-over-month decrease of 3.7%. Condominiums sold for an average of $239,011, seeing a decrease of 1.2% year-over-year, with only an increase of 0.3% when compared to April 2022. Duplex prices increased 10.5% from May 2021, selling at $395,783, resulting in a 3.3% decrease from April 2022.

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $417,300, a 9.2% increase from May 2021, with no change being recorded from April 2022.

“We’re starting to see a slow down of the real estate market in the Greater Edmonton Area as we head into the early days of summer,” says REALTORS® Association of Edmonton Chair Paul Gravelle. “While we continue to see a lot of activity in the market, we’re not seeing as big of month-to-month changes for pricing, sales and days-on-market that we did earlier this year.”

Single-family homes averaged 23 days on the market, seeing no change from April 2022. Condos averaged 44 days on the market, decreasing by one day month-over-month, while duplexes averaged 25 days on the market, a one-day increase compared to last month. Overall, all residential listings averaged 29 days on the market, decreasing by four days year-over-year and down two days as compared to April 2022.

Realtors Association of Edmonton | April 5, 2021: 

In summary, year-to-date, condo sales are up +48%, compared to 2020; single family home sales are up +81%.  Condo new listings are up +26%; single family home new listings are up +17%, over 2020. Single family home prices are up +4.6% , and condo prices have held relatively steady at -0.5%. 

Total residential unit sales in the Greater Edmonton Area (GEA)* real estate market for March 2021 increased 109.9% compared to March 2020 and increased 52.8% from February 2021. The number of new residential listings is up year over year, increasing 51.6% from March 2020. New residential listings are also up month over month, increasing 55.7% from February 2021. Overall inventory in the GEA fell 13.4% from March of last year and increased 11.5% from February 2021.

For March, single-family home unit sales are up 118.2% from March 2020 and up 53.5% from February 2021 at 1,586. Condo unit sales increased 79.6% from March 2020 and increased 51.9% from February 2021.

All residential average prices are up to $391,219, a 13.7% increase from March 2020, and up 3.5% from February 2021. Single-family homes sold for an average of $457,936, a 13.3% year-over-year increase from March 2020, and a 4.6% increase from February 2021. Condominiums sold for an average of $229,690, an 5.2% increase year-over-year, and prices are down 0.5% compared to February 2021. Duplex prices increased 11.1% from March 2020, selling at $348,280 which was a 1.5% increase from February 2021.

“The Edmonton market in March saw a significant increase in year-over-year residential unit sales as well as month-to-month sales,” says REALTORS® Association of Edmonton Chair Tom Shearer. “There have also been more sales of single-family homes, condos and duplexes compared to March of last year as well as last month. It is important to keep in mind what we experienced last March with the global pandemic and provincial lockdowns as it relates to the impact on year-over-year numbers. With that said, we are still witnessing a very strong start to the spring market.”

Single-family homes averaged 37 days on the market, a 17-day decrease from March of last year. Condos averaged 53 days on the market, a 13-day decrease year-over-year, while duplexes averaged 39 days on market, a 29-day decrease compared to March 2020. Overall, all residential listings averaged 42 days on market, decreasing by 18 days year-over-year and decreasing by 10 days compared to February 2021.

When you are thinking of selling your home this spring, you may be considering, “What should I look for in an Edmonton Realtor?” The National Association of Realtors (NAR) conducted an in-depth survey that provides insight to help you prioritize what you should be looking for.  As well, please compare my personal experience from 15 years of successfully selling Edmonton homes and the research – I consistently sell 95% of all the homes I list.

In order of most important, here are the requirements that sellers look for in their Realtors.

#1) Sellers need their Realtor to find a buyer for their property – 28%.

Having their Realtor find a buyer for their home is the #1 priority for sellers. Currently the Edmonton real estate market has high inventory of many homes for sale, which puts sellers in competition for fewer buyers.  Finding an  Edmonton real estate agent that will market your home is critical for targeting the right buyer.  

In addition to showcasing your home on high ranking national and international web sites, we use invovative marketing strategies that include high-tech services professional social media that targets specific demographics in a geographic location to reach buyers. Within the first 48 hours of advertising a property, your home will receive approximately 7, 000 views and 1,600 clicks directly to the property details on Alison’s web site from people nearby who may be interested in your property. These online views result in buyers contacting Alison to view your home.

Other marketing services that are also of no extra charge to our clients are professional HDR photography (including twighlight photography), professional community Youtube videos, and 3D walk throughs.

#2) Sellers need their homes sold in a certain timeframe – 27%.

Some sellers may have more time than others to get their homes sold, but everyone has a timeframe.  The success of having your home selling sooner or later is highly related to the expert services your Realtor provides.

#3) Sellers would like their property accurately priced – 17%.

Home sellers don’t want an exaggerated listing price, but instead want a comprehensive market analysis along with honesty on how different price points will produce different results. It is important to find an experienced Edmonton Realtor who knows your area and product, and has the knowledge to accurately and competitively price your home.

#4) Sellers would like suggestions to fix up their home for a higher return – 12%.

With so many homes for sale in the Edmonton market, it is critical that your property looks its best. A Realtor who has a unrivaled eye for detail and a network of professionals, will ensure your home looks attractive to your target audience. This will greatly increase your chances of attracting a qualified buyer and selling your home faster, often for more money.  We agree that having your property look its best is a MUST. We offer a range of preperation services for your home such as expert guidance with improvements, decluttering, interior decorating, partial or full staging, and virtual staging.

#5) Sellers require assistance with paperwork, inspections and settlement – 7%.

There are many situations where details can fall through the cracks if your realtor lacks experience or is too busy. A good example is with the handling of the buyer’s conditions to the sale including a thorough condo document review and inspection. Buyers more often than not have questions and concerns with these items therefore having a Realtor who is competent and available (not spread too thin with too many clients) to deal with these items is important to the completion of your sale.

#6) Sellers would like their Realtor to negotiate and deal with buyers – 5%.

It was surprising that this did not come higher on the list. If your Realtor snags a buyer because they did a great job with preparing your home, pricing your property correctly and marketing it effectively, but lacks the EXPERIENCE, KNOWLEDGE, SKILL and TIME to help with negotiation, you could lose the only good offer you had while your property was in the market, or leave money on the table.

What does this mean for sellers in the Edmonton real estate market?

According to the research, home sellers value marketing strategies that bring buyers, preparing your home for sale, solid pricing, and the ability to handle any conditions and negotiations.  This research can serve as a useful guide in today’s housing market.

As an Edmonton Realtor, I consistently sell all the homes that I list every year (Edmonton Realtor’s Association Sales-to-Listing Ratio of 31% for 2018).  We would be committed and honoured to help you sell and/or purchase your home.

https://infoedmonton.ca/home-evaluation.html

Alison Murray, BCom
Remax Real Estate

Alison@infoEdmonton.ca
780-619-9812

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 “2018 Profile of Home Buyers and Sellers” conducted by The National Association of Realtors.

Inspired by James Kimmons’s article “What Sellers Want from Their Real Estate Agent”

Copy Right Alison Murray 2019