January Report: Prices fall, properties sit - no urgency for buyers

Posted by on Tuesday, February 2nd, 2016 at 2:18pm.

Statistics in Edmonton for the first month of 2016 continue to tell the tale of Alberta’s energy market woes.

January saw nearly 40% more homes on the market than what was available in January 2015. Residential inventory as of January 31 was at 5,751 – a gain of 13.03% over December 2015.  Inventory was up but sales were down, as is generally the case mid-winter.  The REALTORS® Association of Edmonton reports that 618 properties moved off the market last month was 7.21% fewer than January of last year and 13.32% fewer than December 2015, also an historically slow month.

Expert Opinion

REALTORS® Association chair Steve Sedgwick points out that residential home prices have certainly dropped, however they are stable with no dramatic shifts downward.  The current economic climate is certain responsible for the current conditions; however Sedgwick believes that the amount of inventory currently available may in fact create opportunities for buyers to make a move.  The association is optimistic that spring and a large selection of homes combined with low interest rates will create movement in the market.

Price drops across the board

Every segment of the market, from single-family detached homes to apartment condominiums saw price drops in January with deals closing on more lower-priced units.  In all property categories combined, the average price was $339,714 which is a drop of 7.2% from the month prior and 6.3% compared with January 2015.  Detached homes specifically came in at $418,928 on average, 1.3% less than December 2015 and 1.2% less than January of last year – very stable statistics in this market segment.

The condominium market saw an average selling price last month of $227,052, a drop of 8.8% from December 2015 and 10.3% from January 2015, a more significant price reduction.

Buyers continue to be attracted by attached homes (duplex/rowhouse) which for the most part were stable throughout most of last year.  In January, that stability was in question as average prices for attached homes took a 12.7% hit from December prices and a 13.6% hit from where prices were in January 2015.

Homes in Edmonton are sitting on the market for an average of 71 days, which is 9 more days than December and 13 more days than it took to sell this time last year. Skewing these numbers are condominiums which take the longest of all to sell.  Condos sat on average last month for 85 days compared with 62 days in December and 61 days last January.

Sedgwick believes this sharp increase is due to buyers weighing their options before jumping into the marketplace.  The urgency to jump on a hot property with offers just isn’t a factor in the current Edmonton real estate market.

 January 2016

 

   Change from Dec ‘15

Change from Jan ‘15

Average price

 $418,928

-1.34%

                                -1.23%

Median price

 $387,750

0.71%

                                 -0.70%

Condo average price

 $227,052

-8.80%

                                  -10.27%

Cond median price

 $220,000

-8.33%

                                   -8.71%

Residential listings

     2,364

84.98%

                                   1.98%

Residential sales

       618

-13.32%

                                 -7.21%

Residential inventory

   5,751

13.03%

                                  39.18%

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