Cool down in Edmonton's Real Estate market?

Edmonton, November 4, 2014: The Edmonton area has been blessed with a beautiful fall and the local housing market has followed the weather trend. The fall months always tend to be a quieter market, but this year sales remained strong a little longer than usual. Edmonton Census Metropolitan Area (CMA) total residential average prices remain stable (up 8.5% over last year) thanks in part to an incline in sales of higher priced houses.

The seasonal slide is reflected in the dip in single family sales, down 12% from last month at 850 sold (918 adjusted). While still up almost 8% from last year, single family prices dipped down from $436,870 in September to $426,848 in October, a difference of 2.3%.

With an average price of $260,491, condos actually gained a bit of momentum going up 2.6% month-over-month and 9.75% year-over-year. Duplex/row house prices were also up month-over-month at $352,907.

In October, 2,049 residential properties were listed which is up 18.6% from last year. 1,412 were reported sold (1,525 adjusted) in the Edmonton CMA. Total days on market for all residential properties were down 3 days over October of 2013.

The demand for single family homes in the $350,000 to $400,000 remains high with 185 properties selling in this range in October. However, inventory is tight at the $350,000 to $400,000 mark with only 227 available properties available as of October 31. “We have seen a lot of action this year in houses under $400,000. People may need to adjust their expectations when looking at houses in this range. There is a big demand for properties at this price point and with a light inventory, you may need to wait a bit longer to find the right house for you,” explains Greg Steele, President of the REALTORS® Association of Edmonton.

Another “hot” market is houses priced over a million dollars. “We have seen this trend throughout 2014. Almost 2% of the single family dwellings sold last month were over a million dollars. Compare that to last October where less than one quarter of 1% of the sales were over a million.” Steele said. 125 million dollar plus homes have sold in 2014 compared to 94 at this same time last year and 75 in 2012.

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Highlights of MLS® System activity (for all-residential sales in Edmonton CMA1)

October 2014 M/M % Change Y/Y % Change
SFD2 average3 selling price – month $426,848 -2.30% 7.80%
SFD median4 selling price – month $399,894 -1.30% 6.90%
Condominium average selling price $260,491 2.60% 9.80%
Condominium median selling price $241,000 -3.90% 8.70%
All-residential5 average selling price $365,520 -1.90% 8.50%
All-residential median selling price $350,000 0% 7.10%
# residential listings this month 2,049 -6.60% 15.40%
# residential sales this month (reported) 1,412 -15.60% -0.49%
# residential inventory at month end 4,473 -7.00% -7.00%
# Total6 MLS® System sales this month 1,939 -8.62% 0.10%
$ Total value MLS® System residential sales - month $594 million -11.10% 8.80%
$ Total value MLS® System sales – month $703 million 7.80% 6.90%
$ Total value MLS® System sales – YTD $8.4 billion 9.90% 15.90%

1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses.
6 Includes residential, rural and commercial sales

3 Average prices indicate market trends only. They do not reflect actual changes for a particular property, which may vary from house to house and area to area. Prior period sales figures have been adjusted to include late reported sales and cancellations and therefore reflect a more accurate view of the period than previously reported at month end. The RAE trading area includes communities beyond the CMA (Census Metropolitan Area) and therefore average and median prices may include sold properties outside the CMA. For information on a specific area, contact your local REALTOR®.

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Elizabeth Cwik

Elizabeth Cwik

REALTOR®
CENTURY 21 Platinum Realty
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