Reason for optimism in Edmonton real estate market

Posted by on Friday, March 3rd, 2017 at 8:26am.

 

It was a glass half full or glass half empty scenario in Edmonton's housing market last month. Overall sales came in at 1,060 which is up substantially over February 2016, outperforming last year by 26% in fact. While sales are up, prices dipped somewhat in the apartment and attached segments while detached home prices increased ever so slightly.

The Realtor's Association of Edmonton released their February statistics without much fanfare with a small report published by the Edmonton Journal.

Of note in the February report is the decrease in inventory across the board as fewer listings in Edmonton will put some upward pressure on home prices in areas where there is little selection. In 2016 by comparison there were too many residential properties on the market and so far in 2017 it would appear that inventory levels are returning to normal.

By February 28, 2017 there were 6,108 properties on the market in Edmonton. Even though there were more properties on the market in February than there was in January, there were just over 8% fewer homes on the market this February than last. Association chairman James Mabey was quoted in February's report as saying all indicators are positive going forward into the spring buying season. Stable prices, increased sales and appropriate inventory will all contribute to a more positive environment in Edmonton's real estate market going forward.

February Home Prices

The average price across all market segments fell slightly over February of last year to $359,468 – a drop of just 1.1%. Detached homes gained some traction from January going into February, increasing by 2.61% and 1.85% over February of last year with an average price of $427,726. Attached homes lost some ground with prices falling by 1.4% from January into February and 1.78% from February 2016. The average price of a condominium in Edmonton dropped the most falling by 6.51% since January and down 6.65% from February last year, to $230,661.

The most expensive property sold in Edmonton last month was a single-family dwelling that was listed at $2 million.

What's Selling in Edmonton

In February, condos priced at under $250,000 seemed to be a popular choice with units in this price point outperforming all other price categories in this market segment. Following that, sales of attached homes (duplexes and town homes) are up 41% when you compare 2017 to 2016. Having said that, only 11% of all sales in Edmonton were in the attached category but there is certainly more growth in the new and resale attached home sector.

The average number of days it takes for properties to sell in Edmonton last month was 65, which is down by 7 days over January but oddly enough, an increase of 8 days over last February. That's interesting as, of course, last year there was lots of product on the market. Detached homes sold the quickest at 59 days, followed by condos at 73 days and attached homes took 80 days.

Edmonton Real Estate Statistics

as compiled by the Realtor's Association of Edmonton


February 2017             Month-Month Change          Year-Year Change

Average Price All: $359,468                         +1.02%                                            -1.05%

Median Price All: $339,289                           -0.06%                                             -2.36%

Detached Average Price $427,726                 +2.61%                                           +1.85%

Detached Median Price: $391,000                 +0.26%                                           -2.25%

Condo Average Price: $230,66                       -6.51%                                           -6.65%

Condo Median Price: $219,963                      -3.53%                                           -1.80%

New Inventory: 2,481                                  +11.26%                                       -12.08%

Residential Sales: 1,606                               +43.63%                                      +26.64%

Total Inventory:  6,108                                +9.19%                                          -8.58%

 

 

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