The single family home market in Edmonton is performing 4.6% down in sales volume from this time last year. (753 homes were reported sold). (11 of which were over 1 million dollars)
363 condos sold in Edmonton in August, down 12% from last year.
The average price per square foot for single family homes was down 1% to $282 and condos were down 2.8% to $243.
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.
Alberta’s economy has been under enormous pressure for some time and we believe that there might be some more room for prices to come down. The rate of consumer insolvencies rose in Alberta in the second quarter of this year by 43 per cent compared to last year, according to the Superintendent of Bankruptcy Canada.
One thing that has started to stand out to me as I follow the market closely is Million Dollar + sales have been increasing. Another 11 in the month of August after a total of 18 sales in July. The largest hits to price seem to be in the 450,000 - 750,000 k range. And of course in the neighbourhoods that are flooded with inventory; resale and new builds. Zone 15 and most of the core mature neighbourhoods in Edmonton have still had tight inventory and increasing averages. This confirms my theory on where you should be buying if you're looking for the best gains long term. The other important statistic that I am curious about in Edmonton at the moment is Vacancy rates. 2015 ended just over 4.6% and I am speculating that number will be higher at the end of 2016.
As always take this information for what it is. Information. Builders will continue to build with cheaper labor costs at the moment. First time home buyer's have a ton of selection and have found themselves entering the market at a good time. Landlords will be competing to keep their rentals occupied. Move up buyers will take advantage of this market. So like any downturn market the people who are effected the most are the ones who were not prepared. And the people who will profit the most will be the ones who have patience and a smart investment plan. This fall should be interesting with the US presidential elections ( and the Federal Reserve making an interest rate adjustment afterwards ) the price of oil still not being able to break the $50 a barrel mark and the one year mark of our new liberal government.
Hope that gives you some insight into the Edmonton Real Estate market for the fall.
Interested in more information about Edmonton area homes for sale? Contact Edmonton Realtor ® Robert Fyfe via email, phone 780-700-4075 or try a custom Edmonton Area MLS ® Search. Realty Executives Progressive