October’s real estate figures are out and the prevailing news is that condominiums took a big hit.
The REALTORS® Association of Edmonton optimistically reports that the outlook for the real estate market will likely remain stable, yet sales fell in all market segments compared to the previous month and compared to October 2014.
Sales Fall, Prices Rise
Interestingly, the number of sales fell but the average price of a residential unit in Edmonton actually rose 1.72% last month from the same time last year. It was also up 1.57% from the previous month.
However, in the same breath ,analyists admit that the figures are skewed by the sale of two luxury properties in Edmonton, both priced in excess of $3.5 million. Remove these two properties from the equation and the math would work out a bit differently. But not by much according to Geneva Tetreault, chair of REALTORS® Association of Edmonton.
Comparing October of last year to October 2015, single-family sales dropped by 14% and condominium sales are down by 17%. Not bolstered by ultra-high-end condominium units, sale prices for condos were 6% lower than they were this time last year.
Attached Homes Sell More Quickly
Properties in Edmonton are sitting for longer than they were last year with the exception of duplex homes and row or townhomes. The average number of days on the market was 57 for all residential dwellings in Edmonton, which is up from 51 days last year and 8% longer than September. That’s an average of 56 days for single-family detached homes and 61 days on average for condominiums which now take the longest to sell. That’s up from 57 in September.
Average days on the market actually fell for attached homes, from 51 days in September to 49 days.
Tetreault said she believes the number of days it takes to put that sold sign on a property will increase as the amount of real estate inventory in Edmonton remains above last year’s high.
The average price for a single-family detached home last month was $438,935, a bump of 1.57% over the previous month thanks to the ultra-high end properties which moved off the market last month. Condominiums and attached homes fell to an average of $244,225 and $359,130 which is down 3.45% and 1.39% respectively from September. Year-to-year, attached homes fared mildly better, up 1.76%.
Tetreault stated that a decrease in sales and prices in fall is common across the board. With inventory levels being so high, buyers have more time to look around. There are definitely buyers in Edmonton wanting to benefit from today’s low interest rates. She noted that Edmonton and area sellers give due consideration to being competitive with their prices, calling the current high level of selection “healthy inventory”. There are 6,641 residential properties currently on the market in the greater Edmonton area, slightly less than September but almost 49% more than this time last year.
Total volume of MLS® System sales in Edmonton last month was $586 million, a decrease of 21.63% from October 2014. Year-to-date sales in Edmonton stand at $7.6 billion.