Q1 has drawn to a close, and despite the Edmonton weather, the spring market is warming up. This time of the year really highlights the seasonality of the real estate industry. The darker, cold months of January and February largely equate to dormancy in the market. With springs arrival, Edmontonian’s come out of hibernation and are mentally ready to take on the challenge of making a move! Couple the mind-shift with the favourable market conditions such as continued low interest rates and increased activity over last year, and Edmonton is poised for another strong year in residential real estate (not just hockey!). We are cautiously optimistic about the market – and the highlights of our market update show why:
Prices are rising at a stable rate. The average sale price for a single family home in Edmonton CMA year to date is $430,433. Compared to last year, we have experienced a slight increase of 0.9%.
Homes are taking slightly longer to sell. The average days on the market for properties sold this year, relative to last, has increased by nearly 9% (58 days in 2016, versus 63 days this year).
Inventory volumes are stabilizing. At the end of March, there were 6,806 properties on the market in Edmonton CMA. That figure is down nearly 10% from last year at the same time, and showing a return to “normal” levels.
More homes are selling. Transaction volume in Q1 was up nearly 12% in 2017 versus that of 2016. In March alone, there were nearly 2,000 sales in the MLS system.
Condos continue to be a challenge. Whether you’re a downtown loft or suburb-located apartment-style condo, the resale condo market continues to struggle. Competitive rental incentives and an influx of purpose-built-rental units has flooded the market with inventory. The combination of typical resale condos and investment properties that have hit the market due to lower than usual rental returns are creating a strong buyer’s market for this type of product.
In March it is typical to experience a great increase in the volume of inventory on the market, the number of transactions taking place, and often, the average sales price of those properties. For more details on the March statistics click here.