Housing Market Update
Inventory and average sales price hold month over month
Entry-level buyers turn their attention to semi-detached product
Edmonton, September 5, 2017:
Month over month, unit sales volume was flat or down across all categories, which is typical for the month of August. Average prices for residential properties in the Edmonton Census Metropolitan Area (CMA) in August 2017 were down 2.66% compared to July 2017, but were up 0.78% relative to August 2016.
The number of all residential units reported sold was 1,542. This represents a month-over-month decrease of 4.93%, but only a year-over-year decrease of 2.03%. The number of single family detached units sold was 930. This represents a decrease of 7.28% compared to July 2017 and a decrease of 1.38% compared to August 2016. It was a softer month for condominium sales with 398 reported, which is down 4.10% month over month and down 10.36% year over year. Duplexes and rowhouses continue to perform well with 184 unit sales in August 2017, which was up 1.66% compared to July 2017 and up 19.48% compared to August 2016.
“Price conscious buyers appear to be turning their attention to semi-detached product as opposed to condominiums for the best value. Changes to mortgage rates and qualifying rules seem to be keeping the entry level market a bit quiet and those that are taking advantage of the amazing selection are very value conscious” says James Mabey, the REALTORS® Association of Edmonton Chair.
The average sale price for single family homes was $438,325 for August 2017. This represents a month-over-month decrease of 1.92% and a year-over-year increase of 0.83%. Average prices for condominiums in August 2017 was $245,184. Showing a month-over-month decrease of 6.37% and a year-over-year decrease of 3.76%. The average price for duplexes and rowhouses was $355,134. This represents a 3.27% increase from July 2017 and a 3.98% increase from August 2016.
In August, inventory was 8,570, which represents a decrease of 0.23% compared to July 2017, and an increase of 10.10% compared to August 2016. Total new residential listings in August were 2,961, down 4.91% from July 2017 and up 9.75% from August 2016.
“A drop in month-over-month units sold in August is historically normal activity for the Edmonton region,” says Mabey. “But average sales prices were higher this August than in any August over the last five years. This may be a positive sign for the economy overall and for forward price growth in the housing market.”
Average days on market across all categories of residential properties in the Edmonton CMA was 57 days. That was four days longer than the average for July 2017 and two days longer than August 2016. On average, single family detached homes sold in 51 days, condominiums sold in an average 68 days, and duplexes / rowhouses sold in 64 days
Edmonton market continues to remain stable during economic uncertainty
Edmonton, October 4, 2016: September’s all residential average sale price in the Edmonton Census Metropolitan Area (CMA) continues to remain strong both month-over-month (m/m) and year-over-year (y/y) up 1.1% and 1.5% respectively. The average price of single family homes remains consistent down less than 1% m/m and down 0.2% y/y to $430,761. Condos average prices also remained flat at $251,365 (-0.06% m/m,-0.45% y/y). Average prices for duplex and rowhouses stood firm, up 4.66% from August 2016 and down slightly year-over-year for the month of September.
“We are moving into the quieter real estate months with a healthy inventory, strong prices and slower listings and sales,” said Steve Sedgwick, Chair of the REALTORS® Association of Edmonton. “It continues to be a good time to buy. We usually see less inventory coming into winter months, so it is beneficial for buyers to have a respectable selection and reassuring for sellers to see continued stability in average sale prices.”
1,339 units reported sold in September 2016; all residential sales in the Edmonton CMA were down 6.56% m/m and down 8.41% y/y. 846 single family homes were reported sold, down 3% from the previous year. Reported condo sales at 327 were down over 20% relative to September 2015. Duplex/rowhouse sales at 135 were down by only 1 unit from August but down 5.59% over last year. All residential listings were down slightly for September -0.29% m/m and -1.47% y/y.
“We expect to see listings and sales slow as winter approaches. We may begin to see the effects of slight downward pressure on prices, but do not expect to see any drastic movement as our market continues to remain stable,” said Sedgwick. “Sellers can expect to wait a little longer than previous years for their property to sell.”
The number of days the average residence in the Edmonton CMA took to sell in the month of September was 57. This is up two days from August 2016 and up three days from September 2015. On average, single family detached homes sold in 54 days in September, while condominiums sold in an average of 65 days and duplex/rowhouses sold in 60 days.
There were 7,857 residential properties available in the Edmonton CMA at the end of September, down less than 1% from 7,908 in August 2016, but up 10.54% from the 7,108 properties available on the MLS® System at the end of September 2015.
Edmonton, September 2, 2016:
August’s all residential average sale price in the Edmonton Census Metropolitan Area (CMA) remains consistent with last August at $369,956, down 4% from July of this year. The price of single family homes in August dropped 4% relative to July from $450,366 to $434,362. Year-over year prices remained stable decreasing by less than 1%. The average condo sale price for August 2016 of $251,526 is down 2% month-over-month (m/m) and 1% year-over-year (y/y). The average duplex/rowhouse sold for $344,377; down 2% y/y and down 1% (m/m).
“Alberta’s economy has been under enormous pressure for some time, but the residential real estate market in the Edmonton Census Metropolitan Area continues to hold. Prices and unit sales for all residential homes are consistent with last year, down less than 1% and 2% respectively,” said Steve Sedgwick, Chair of the REALTORS® Association of Edmonton.
At 1,433 units reported sold, all residential sales in the Edmonton CMA were down 5% m/m and down 2% y/y. 861 single family homes were reported sold in August 2016, down 3% from the previous year. Reported condo sales at 406 were down 6% over August 2015. Duplex/rowhouse sales at 136 were up 11% over last year. New residential listings were down 5% m/m and over 6% y/y.
“While this is one of the most active times of the year, we are seeing both listings and sales tapering off as we move into the fall months. This is standard in our local real estate cycle,” said Sedgwick. “While unit sales for condos have been impacted the most, prices remain stable. This is thanks in part to the continuing trend of unit sales of over $750,000 that are keeping average sales price of condos elevated by almost 3%.”
The number of days the average home in the Edmonton Census Metropolitan Area (CMA) took to sell in the month of August was 55. This is consistent with August 2015 and down one day from July 2016. On average, single family detached homes sold in 49 days in August 2016, while condominiums sold in an average of 62 days and duplex/rowhouses sold in 56 days.
There were 7,908 residential properties available in the Edmonton CMA at the end of August, down 2% from 8,048 in July 2016, but up 9.4% from the 7227 properties available on the MLS® System at the end of August 2015.
Edmonton, August 3, 2016:
The all residential average sale price continues to remain strong at $384,504 up almost 2% over the previous month and over 3% from July 2015. At $450,366, single family homes experienced an increase in average price of over 3% from both the previous month and year. The 2% drop in average condo price month-over-month can be partially attributed to the sale of several luxury properties in June that bolstered the average price. The average condo sale price for July 2016 of $257,482 remains the same as July 2015. The average duplex/rowhouse sold for $348,050; down 2% year-over-year (y/y) and down 1% month-over-month (m/m).
“We can attribute much of the average price increase to the strength of high end home sales. When we look at the median price of residential properties, we see a clearer picture of what is happening to prices. The median sales price for all residential is up less than a percent from last year. We are continuing to see strong stable pricing throughout the Edmonton region despite slower sales.”
At 1,515 units reported sold, all residential sales in the Edmonton CMA were down 15% m/m and down 16% y/y. 938 single family homes were reported sold in July 2016, down 16% from the previous month and 16% from July 2015. Reported condo sales at 401 were down 13% over June and 25% from the previous year. Duplex/rowhouse sales at 154 in July are up 11% y/y but down 10% m/m.
“The July slow down in unit sales is typical. May and June remain the busiest months of the year when it comes to sales volume. Every year we traditionally see a slow down in July and August followed by an uptick in September,” says REALTORS® Association of Edmonton Chair Steve Sedgwick. “There is no question that the pace and volume of sales has dropped. The positive side of this is that there continues to be a good selection of inventory for buyers.”
The number of days the average home in the Edmonton Census Metropolitan Area (CMA) took to sell in the month of July was 56. This is up 3 days from the previous month and 6 days from July of 2015. On average, single family detached homes sold in 52 days in July 2016, while condominiums sold in an average of 61 days and duplex/rowhouses sold in 57 days.
Total new residential listings in July were 2,895, down 7% from July 2015 and down 5% from the previous month. There were 8,048 residential properties available in the Edmonton CMA at the end of July, down from 8,179 in June, but up from the 7,226 properties available on the MLS® System at the end of July 2015. That is up from 7,177 in June of 2015 and 5,609 in June of 2014.
Edmonton, September 2, 2015:
The average residential price in August for the Edmonton Census Metropolitan Area (CMA) is up 1% year-over-year (YoY) and down slightly by 0.2% relative to last month. A single family home in the Edmonton Census Metropolitan Area (CMA) sold for an average of $439,829; up 0.7% from July and up 1.0% YoY. The average for all residential properties sat at $372,256; down 0.2% from July and up 1.0% over last August.
“Edmonton continues to experience a relatively stable market with respect to year-over-year prices. A slower pace of sales, combined with growing inventories, are creating favourable conditions for entering the Edmonton market,” explains Geneva Tetreault, Chair of the REALTORS® Association of Edmonton. “We have a great selection of inventory this year, a luxury we did not have last year. Sellers may have to wait a little longer to sell their houses but they should still being getting a good price for their house. Buyers can take more time to select their home and have more choice than they would have last year.”
“While there is no doubt that oil prices and the resulting economic slowdown have impacted the housing market, Edmonton has been able to weather these changes better than other Alberta markets.” Tetreault continues, “New developments and projects both in the city and outlying areas have kept the housing market moving.”
Sales continue to lag behind last year in all areas except duplex/rowhouse. An increase in availability of duplex/rowhouse options has helped this category grow over last year in sales (up 1.7%) and price (up 1.53%). Condos continue to be the hardest hit, with sales down 7.7% and average prices down 2.8% from last year.
Sales of all residential properties reported last month are down 5.6% from those reported in August of 2014. Single family home sales of 884 were down 4.3% YoY compared to 1,111 reported last month. Inventory remains strong at 7,227 for the Edmonton CMA at the end of August 2015, up 35% from last August. All residential listings were up YoY by 26.9% but down by 6.3% from last month. There is currently just under five months’ supply of inventory in the Edmonton CMA.
Average days on market for all residential properties was up again this month at 54. Single family average days on market was up to 52 from 48 in July. Condominiums were averaging 56 days compared to 54 in July, and duplex/rowhouses took an average of 52 days to sell in August.
Residential Housing Market cools in third quarter
Edmonton, October 2, 2012: The REALTORS® Association of Edmonton reports that residential listings and sales have trended lower in the third quarter after an active start to the year. In September, there were 1,269 residential sales in the greater Edmonton market as compared to 1,442 in September 2011. Despite the recent cooling trend, residential sales year-to-date are still up 7.2% as compared to last year at this time. There have been 14,565 residential sales to the end of the third quarter as compared to just 13,729 last year.
“There were changes to the mortgage qualification rules in March,” said REALTORS® Association of Edmonton President Doug Singleton. “We did not see an effect on the local market at that time but it seems to have had a cooling effect in the past quarter.”
The average1 price for a single family dwelling (SFD) has remained higher than last year for each of the past nine months. In September, the SFD average price of $376,678 was up just 0.23% from the previous year and is up 2.78% from the January 1 price. The all-residential average price is down 2.6% from last year at $323,369. This is the first month this year that the all-res price has dipped below the 2011 figure for the same month.
Condominium and duplex/rowhouse prices are more volatile and vary widely from month to month. In September average condo prices were down 3.1% ($229,246) while duplex/townhouse prices on average were up 2.75% ($307,739). Still, after nine months both current prices are up from the January 1, 2012 prices for the category.
Total MLS® System listings this year are up 104 units as compared to last year at 33,295 properties but Total MLS® System year-to-date sales are 16,487 units as compared to 15,378 at the end of the third quarter in 2011. There are 6,956 residential properties in the inventory compared to the 8,062 last year at this time. Rural and commercial property sales are both up marginally compared to last year although listings have dropped. The residential sales-to-listing ratio was down from 56.7% to 52.3% and residential days-on-market was up to 59 in September from 54 in August.
“Sales always fall month-to-month at the end of the year; that’s just normal market fluctuation,” said Singleton. “But overall, the market has been stable with little market advantage for either buyers or sellers. Edmonton is still one of the best places in North America to own property and I urge consumers to talk to their local REALTOR® when they are in a position to buy or sell property.”
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