It doesn’t look like our market is going to slow down any time soon. It will come to a stop. We don’t know when. Here is what we do know…
Demand is incredible with people taking advantage of the low interest rates and the Alberta economy strengthening. We see people moving into province, locals moving up and down, and investors. Supply is tighter for some product at the moment, but we forcast that inventory will double in the next few month with last years inventory that did not sell coming back on to the market. Compared to some of the other areas in Canada, we don't have the same supply issues. Starting in March, interest rates are scheduled to go up from 3% to 4%, by a .25 point at 3xs this year, which in turn has forecasted to slow sales down to the tail end the year.
(Source: RBC Senior Vice-President & Chief Economist, Craig Wright. Growth prospects and risks in the Alberta economy presentation Februray 16, 2022).
2022 Sales Are Starting Off Strong - Up 14.4%
Realtors Association of Edmonton | February 2, 2022: Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for January 2022 increased 1.5% compared to December 2021 and increased 14.4% from January 2021.
New residential listings decreased 8.9% year-over-year from January 2021. However, new residential listings are up month-over-month, increasing 55.7% from December 2021. Overall inventory in the GEA was down 14.8% from January of last year but increased 5.0% from December 2021.
For January, single-family home unit sales are up 10.0% from January 2021 and up 3.5% from December 2021 at 811. Condo unit sales increased 21.6% from January 2021 and decreased 0.9% from December 2021. Duplex/rowhouse unit sales were up 19.1% year-over-year and down 3.0% month-over-month.
All residential average prices are at $376,923, a 1.1% decrease from December 2021, and a 3.5% increase from January 2021. Single-family homes averaged $445,932, a 4.3% year-over-year increase and a 3.6% decrease from December 2021. Condominiums sold for an average of $224,566, a 3.7% increase year-over-year, and prices are up 3.5% compared to December 2021. Duplex prices increased 11.1% from January 2021, selling at $382,471, a 5.4% increase from December 2021.
The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $416,000, a 6.1% increase from January 2021, and up 1.2% from December 2021.
“The Edmonton real estate market in January saw a slight decrease in all residential listings from January 2021, our month-over-month activity increased substantially since December 2021,” says REALTORS® Association of Edmonton Chair Paul Gravelle. “While we have predicted to see sales decrease in 2022, we are expecting prices to increase marginally as move to a seller’s market.”
Single-family homes averaged 51 days on the market, an eight-day decrease from January of last year. Condos averaged 73 days on the market, with no change recorded year-over-year, while duplexes averaged 52 days on the market, an 18-day decrease compared to January 2021. Overall, all residential listings averaged 57 days on the market, decreasing by eight days year-over-year and increasing by five days as compared to December 2021.
|MLS® System Activity 2022||Jan. 2022||M/M % Change||Y/Y % Change|
|(for all-residential sales in GEA1)|
|SFD2 average3 selling price – month||$445,932||-3.6%||4.3%|
|SFD median4 selling price – month||$420,000||-0.8%||6.3%|
|Condominium average selling price||$224,566||3.5%||3.7%|
|Condominium median selling price||$192,000||1.1%||-1.2%|
|All-residential5 average selling price||$376,923||-1.3%||3.5%|
|All-residential median selling price||$365,000||2.0%||4.4%|
|# residential listings this month||2,162||53.2%||-8.9%|
|# residential sales this month||1,337||1.4%||14.4%|
|# residential inventory at month end||4,719||5.0%||-14.8%|
|# Total6 MLS® System sales this month||1,615||-3.6%||6.9%|
|$ Value Total residential sales this month||$526,681,554||-0.8%||18.4%|
|$ Value of total MLS® System sales – month||$625,279,987||-2.9%||10.9%|
|$ Value of total MLS® System sales - YTD||$625,279,987||-94.8%||10.9%|
1 Greater Edmonton Area (Edmonton and municipalities in the four surrounding counties)