Resale housing inventory up 18%, but prices remain strong

Edmonton, May 3, 2016: Despite an 18% increase in inventory for the Edmonton Census Metropolitan Area (CMA), all residential prices remain stable at $377,283 for April 2016. That is down less than 1% from the previous month and up less than 1% from last year.

The average single family home in the Edmonton CMA sold for $439,982 in April 2016, up marginally over March’s average price of $439,815 and April 2015’s average price of $438,641. Listings and sales unit volumes were down for single family detached homes year-over-year, but up over the previous month.

Condo prices are down less than 1%, likely due to the lower unit sales relative to April 2015. Prices for April 2016 are also down about 1% relative to the previous month. Listings and sales of condominums are up over March 2016, while listings are up and sales are down over April 2015.

“Prices in the Edmonton and Area market remain stable. This is good news for sellers who have been concerned about selling in a ‘buyer’s market’,” REALTORS® Association of Edmonton Chair Steve Sedgwick said. “Buyers continue to have a great selection of properties to choose from and sellers need to be competitive with their listings. Continued lack of significant movement in the average house price is a good signal that Edmonton’s economy is strong.”

Single family homes had a 51% sales-to-listing ratio for April 2016, up 2% from March and down 3% year-over-year. Duplex/rowhouses sat at 51% as well, down 14% from 2015 but up 2% from the previous month. With a 38% sales-to-listing ratio (up 2% from last month, down 6% from last year) condos continue to be the most challenging type of property to sell.

1,498 residential properties were sold in the Edmonton CMA in April, up nearly 10% from the previous month, but down 6% from sales reported in April 2015. There were 938 single family detached homes reported sold in the Edmonton CMA, a 9% percent increase month-over-month, and down 6% from the same time last year. 396 condos sold in April, up 18% over March and down 8% over April 2015. 148 duplex/rowhouses sold in April, up 3% from March and up 7% from April 2015.

“New listings were slightly down in April, but inventory remains high.” Sedgwick continues, “We expect to see sales continue to rise through the early summer months. It will be interesting to see whether there are many new listings adding to the existing inventory in upcoming months.”  

April’s all residential average days-on-market sat at 40 (7 days shorter than the previous year and 13 days shorter than March 2016).  On average in April, single family homes sold in 35 days, condominiums sold in 46 days, and duplex/rowhouses sold in an average of 49 days.

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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

Source: http://www.ereb.com/News&Events/LatestMarketStatistics.html

We're seeing the housing market stay stable in Edmonton despite what analysts were claiming to be a period of stagnation. The condominium market is where we're seeing the biggest drops in price. In my opinion, it's buyers who are realizing that a monthly condo fee that doesn't include utilities or a complex that doesn't have a healthy reserve fund is possibly a bad investment in the long term. The value of the properties is not rising beyond some of the newer, higher end condos but in those price ranges you can purchase a duplex in many of Edmonton's neighborhoods.  Long term rentals are how some investors are hoping to recoup some of their money but with that we are seeing vacancies in the rental market applying pressure to this group of investors. The number of properties available (8,033 at the time this article was published) gives buyers ample choices that we haven't seen in Edmonton in quite some time. There are still opportunities for investors to make money in real estate in Edmonton but it requires more diligence in finding the right place in the right neighborhoods.

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Elizabeth Cwik

Elizabeth Cwik

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CENTURY 21 Platinum Realty
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