It would seem that housing prices in Edmonton are bucking the trend.
Usually, abnormally high levels of inventory put a lot of pressure on prices but last month there was very little movement despite a spike of 18% in the number of homes for sale in Edmonton. The average price of a home, across all market segments, was $377,283 which is only down by a measly one per cent over March and a sliver of a percentage point up from April 2015.
There were 10% more homes sold in April than the previous month but 6% lower than total sales for April 2015.
Single family homes fared the best last month, with the average detached home selling for $439,982 which is higher than March and slightly above the average price in April 2015. The number of listings and sales volumes is lower year-over-year although still marginally higher than March.
Remarkable, homes sold more quickly last month. Across all segments, the average days-on-market was just 40 days, which is 7 days less than April 2015 when the provincial economy was still fairly strong and 13 days less than March 2016. Single family homes sold, on average, in 35 days while condos took 46 days and attached homes, which historically fare better than condos, sold in an average length of time of 49 days.
Sales continue to be slow in the condominium sector yet prices are lower by only an insignificant amount compared to 2015 and to March of this year. There has been slight improvement over March but overall, numbers of listings and sales are lower than April of the previous year.
The sales-to-listings ratio last month was 51% for single family homes and attached homes, not much of a shift from the previous month or year-to-year. However, the condo statistic is 38% which is 6% lower than it was in April 2015 so condos sales in Edmonton appear to be challenging. Last month, 396 condos were sold which is 18% more than the number of units in March and 8% fewer than the same time last year.
Edmonton’s economy seems to be providing some buoyancy to home prices, creating that stable environment where home prices are reasonable stable. With an 18% increase in inventory over March 2016, the market really should be more of a buyer’s market with so much selection; however sellers aren’t in a hurry to lower prices so the market hasn’t become competitive.
Steve Sedgwick, chair of the REALTORS® Association of Edmonton was quoted in his monthly release as saying that stable home prices are good for sellers and that the lack of movement in home prices is a good sign that the city’s economy is strong.
He says that the Board predicts that home sales will creep higher as we go through the early summer and that it will be watching what happens as more listings come on stream in the months to come.
April 2016 Change from March 2016 Change from April 2015
Detached Average: $439,982 +0.04% +0.88%
Detached Median: $407,000 +0.49% 0.00%
Condo Average Price: $250,869 -0.09% -0.54%
Condo Median Price: $232,500 -0.64% -1.28%
Residential Listings: 3,258 +5.71% -1.33%
Residential Sales: 1,498 +9.82% -6.20%
Residential Inventory: 8,033 +10.13% +18.41%