Activity in the Edmonton real estate market continued on a roller-coaster ride in November according to the Realtors Association of Edmonton. Although the climbs weren’t as high and the free-fall not very steep.
Single-family homes sold for an average of $440,496 last month, an improvement of 1.76% over resale home prices in the detached sector in November of 2015 and 3.95% higher than the average selling price in October of this year. Condos sold last month at an average of $241.569 which is 4.75% below last November’s average selling price and 1.68% under October’s average selling price.
Edmonton home buyers put their money down on attached homes last month, with the average price of a duplex or town house/row house coming in 4.23% higher than the previous November at $353,818 and 6.39% higher than sales volumes in October of this year.
Overall, the number of resale transactions last month in Edmonton was 11.41% lower than last year with 978 residential units in all market segments selling in November.
There were fewer people buying homes in Edmonton last month but with stable prices especially in the detached sector, November was the second-best month on average for selling prices since July of this year. The bump in single-family stats is due in part to a couple of high-end luxury listings that finally moved off the market last month.
Steve Sedgwick of the Realtor’s Association of Edmonton has been positive about the market all year long and continues to call the Edmonton market strong and stable. In his monthly release, he noted that the median selling price across all residential market sectors has only fallen by 1% over 2015.
The number of average days to sell for single-family homes remained unchanged over October of this year at 52. In November 2015, it took 55 days so single-home sales are starting to go quicker, relatively speaking. However, the typical cold-season slow-down is definitely upon us as apartment condos and attached homes are taking longer to shift, taking 79 days and 74 days respectively. That’s 17 and 18 days longer than the time frame in November 2015.
Even with fewer sales in November, inventory decreased by 10% over October but still 7.45% more homes on the market this November than there was November last year.
Investors gnashing their teeth as vacancy rate soars
With real estate in Edmonton relatively secure, those who are still renting are having a heyday as vacancy rates in the province are as high as they’ve been since the late 1980s. CMHC pegs the rate at 8.1%. Compare this with 5.6% from late 2015.
Nationally, CMHC has set the vacancy rate at 3.7%.
The vast majority of vacancies are in apartment rentals which is believed to be 7.1%. The economy and a glut of new construction multi-family units has caused the spike and rents to come down.
CHMC says that 35.8% of rental properties in the city have seen a turnover of tenants in the last year. The statistic for that nationally is 20%.
One of the positive factors Edmonton’s real estate market is the number of people moving to the city from abroad. International migration has been keeping the rental market from completely blowing up.
November 2016 Snapshot
- Average selling price for detached homes: $440,496
- Average selling price for condos: $241,569
- Average selling price attached homes: $353,818
- Average selling price all homes: $373,174
- Change in residential prices compared to Nov 2015: +0.98%
- Total sales: 798 units
- Inventory in Edmonton Nov 2016: 6,493 homes