As we head into the Fall season (or is it Winter?) and final quarter of the year, it is time to revisit how the market performed in the first three quarters of the year. Whether you are selling or buying a property, it is hugely important to educate yourself on the state of the market before heading into a potential transaction. Doing so will help you avoid making mistakes that will hurt you down the road and allow you to ask the right questions of your real estate professional.
Despite the constant magnifying glass over the Edmonton market, with watchers seemingly waiting for a dramatic fall-out, the market is holding “steady.” Perhaps you consider it boring or uneventful in comparison to the national real estate stories making waves, but the September key indicators all continue to demonstrate a stable environment:
Sales prices remain the strongest, most stable, metric with marginal shifts month-over-month (MoM) and year-over-year (YoY) overall and in key segments. In September, the overall Edmonton Census Metropolitan Area (CMA) sales prices were up 1.1% over the prior month and 1.5% over the prior year. For the single family home segment, prices were again consistent: down less than 1% MoM and down 0.2% YoY to $430,461. Condos average prices also remained flat at $251,365 (-0.06% MoM,-0.45% YoY).
The volume of transactions taking place is experiencing a greater, but still marginal, decrease. In September 2016, 1,339 units were sold in Edmonton and surrounding areas, down 6.56% MoM and down 8.41% YoY. Drilling down into this figure highlights the vulnerability of the condominium market. The single family homes are stable with only a 3% decrease over last year, whereas the condominium market is down 20% over last year.
The amount of time it takes to sell a property, the average days on market, remains relatively stable as well at 57 days. Relative to last year this was a marginal three days longer. The condominium segment is of particular mention here again, as it has seen an increase to 65 days on market average, up from 45 at the same time last year.
As we head into the final quarter of the year, what can we expect? First off, we expect October to remain a strong and active start. As winter becomes more prevalent and the holidays near, the real estate market will naturally slow, however, it should remain consistent with last year’s figures. If you are a buyer, it will remain an excellent time to purchase with strong inventory and selection. And for sellers, while you can expect to wait slightly longer to sell, you have assurance that prices are stable (for now).
For more information and the latest statistics, please visit EREB.