A look back at September activity in Edmonton shows that home prices are still holding their own but sales volume is dropping. And with winter on the way, sales will start slowing even more.
The Realtors Association of Edmonton revealed yesterday that the average price of a detached home has fallen slightly from the highs of 2014. Condominium prices have remained constant and the value of attached homes and townhouses is up.
The story so far in 2016 has also remained constant. Average home prices have held water, affected very little by the higher inventory currently being experienced in Edmonton as well as the slow erosion of sales volumes.
Steve Sedgwick of the realtor’s association said there haven’t been any big spikes or dips, nor does he feel that there will be negative fallout in the Edmonton area from the federal government’s move to close up a tax loophole that foreign buyers have been taking advantage of.
Sedgwick noted that he can’t fully explain why the real estate market, historically an excellent barometer of market conditions across the board, hasn’t completely crashed. He said that he still expects something to happen, particularly into the late fall when sales slow. He referred to it as “inevitable.”
There may be some movement since the Canada Mortgage and Housing Corporation announced new lending guidelines for mortgages this week. In a move to protect Canadian lenders and to save Canadians from drowning further into debt, CMHC has decided that all buyers looking to borrow mortgage funds must qualify at the Bank of Canada interest rate of 4.64%. This applies to buyers who don’t have a down payment of more than 20% of the purchase price.
This means two things – that people wanting to buy their first home might wait a few years until they have up a larger down payment or that they will be looking at lower-priced properties on the market in line with what they would qualify for.
This could be good news for attached homes, townhomes and condo sellers that typically have homes for sale in the first-time buyer price segment of under $400,000. It continues to be a good time to buy.
There were 1,339 homes sold last month which is 6.56% fewer than August and 8.41% fewer sales than what were reported in September 2015. Of those 1,339 sales, 846 of them were detached homes, 3% fewer than September 2015 sales. Condos accounted for 327 of them which was 20% fewer than the same month last year. The sales of attached homes stood at 135 last month which was virtually the same as August but 5.59% fewer than last year.
Inventory in Edmonton was almost unchanged from August and with a drop of 1.47% over the number of listings in September 2015.
The number of days to sell in Edmonton increased by two over August and by three days from last September to an average of 57 days. Single-family homes sold the quickest at 54 days followed by town homes/attached homes at 60 days and condominiums at an average of 65 days.
The average sale price in Edmonton held steady. Prices were 1.1% more than they were in August and 1.5% more than they were last September.
- Average selling price for detached homes: $430,461
- Average selling price all homes: $373,926
- Increase in residential prices compared to Sept 2015: 1.5%
- Total sales: 1,339 units
- Number of condos sold Sept 2016: 327
- Decrease in condo sales compared to Sept 2015: 20%
- Average condo price Sept 2016: $251,365
- Inventory in Edmonton Sept 2016: 7,857 homes