Lately, media has talked a lot about the "Alberta real estate market" and has presented it in a negative light. In reality, real estate markets are much more local than that. Not only will it vary by city within the province, but even within a city by property type, purchase price, and neighborhood. While we have seen economic pressures take a toll on some real estate markets around the province, Edmonton's market remains stable overall.
To help separate myth from reality I wanted to highlight some recent trends in Edmonton Real Estate Board's April real estate statistics for the Edmonton Census Metropolitan Area:
Increase In Listings
There was an 18% year over year increase in inventory last month, from 6,784 in April 2015 to 8,033 in April 2016. That is a significant jump and certainly shows that buyers now have more selection. It also indicates that sellers need to price right and prepare their home to stand out in a more competitive market. In spite of this, the average all-residential price of $377,283 for April 2016 is down less than 1% from the month prior and up less than 1% from April 2016.
Single Detached Homes Going Strong
At $439,982, the average single family home in Edmonton has actually increased marginally from March 2016 ($439,815) and April 2015 ($438,641). The starter home is still moving. First time buyers who want a detached home may be surprised when they still see multiple offer scenarios and attractive properties moving very quickly.
Condominiums Are Struggling
Of all the property types, condominiums are the most difficult to sell right now. They have a 38% sales-to-listing ratio (down 6% from a year ago) versus the single detached and duplex/row houses which had a 51% sales-to-listing ratio.
We have seen an increase in transactions from March, but a drop in the number of sales year-over-year with every property type except row houses/town homes. There were 938 single family detached homes reported sold, 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/row houses sold in April, up 3% from March and up 7% from April 2015.
Is Your Dollar Going Further?
The answer is "it depends." It depends on neighborhood, property type, and price range. Looking at average price only tells one story. You will have to dig much deeper to understand what that average price will now buy you. This is where a strong Realtor can give sellers and buyers a big edge in understanding your specific target market. For example, understanding price per square foot trends at various price ranges and the number of sales in particular price ranges will draw a more complete picture.
We will continue to watch how the spring and summer market unfolds. For now, we have a healthy real estate market.
Before making a buying or selling decision please contact me at 780-908-1224 to get the information specific to your situation.