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.