The City of Edmonton has grown by over 60,000 people in the past two years according to the recent municipal census. Surrounding communities are also growing because of the strength of the Alberta economy. The pressure on housing is forcing real estate prices and sales volumes up and shortening the time it takes to sell a home, according to the REALTORS® Association of Edmonton.
The total value of residential real estate sales through the Edmonton Multiple Listing Service (MLS®) System has increased almost 14% compared to the same time last year. Over $5.7 billion worth of homes have been sold compared to $5.0 billion last year at the end of August. New arrivals to Edmonton have pushed the number of homes sold so far this year up from 13,377 to 14,858; an 11% increase. Average days on market was just 49 days in August compared to 53 last year.
“Our members are kept busy finding and selling homes for our clients,” said REALTORS® Association President Greg Steele. “There has been some pressure this summer with a tight inventory of available homes and lots of new customers but low interest rates and new construction are enabling people to find a suitable home in the Edmonton area.”
The average price for a single family dwelling (SFD) in the Edmonton CMA in August was $435,430 (up 1.9% over July) and condos sold on average for $262,273; a 3.1% increase. Duplex/row house prices were down 2.7% to $349,590 which limited the average all-residential sales price to a 2.0% increase at $368,597 in August compared to July.
In the last half of the summer, residential sales were down compared to July from 1,999 to 1,552 units. Single family sales were down 15.4%, condo sales were down 20.8% and duplex/rowhouse sales were down 11.8% in the month. Total sales were down 6.0% when compared to August 2013.
“We move into the fall with 5,334 residential properties in the inventory and a vibrant market,” said Steele. “Homebuyers and sellers are encouraged to work closely with a REALTOR® to find a suitable home in their preferred neighbourhood and price range.”
The number of homes listed for sale in August was 4.2% higher than the same month last year. The sales-to-listing ratio was 67%: slower than the 75% last August.