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Edmonton Real Estate Update: Prices Up but Keep Your Eyes Open

Blog by Sara Kalke | March 5th, 2012

Well, spring has (almost) sprung and we're off to a great start.  Average prices in February are up higher than the year-long average in 2011, as lower inventory and spiked buyer demand have created a busy spring-like market, even though there's still snow on the ground.  Record low 2.99% interest rates as well as warm weather created the perfect storm for strong activity in February. 

Two things to pay attention to: 1) shadow inventory - with only 1 in 5 properties selling last year, there are many more sellers out there than are currently listed.  I am going to keep my eyes on the inventory numbers into April and May, when many sellers typically decide to list - a sudden flood of listings could reverse whatever gains we have had at the beginning of the year, 2) interest rate increases - with rates already jumping from their 2.99% record lows (although how long could 2.99% really last!), further increases (or just increases back to where they were) could bring back the old waiting game for buyers, where motivation meets procrastination.  We'll see what the future holds, but good news for 2012 so far - buyers and sellers are both winning right now - low inventory, low interest rates, and spring hasn't officially started yet.

Thinking of buying or selling?  Have real estate questions?  I'm here for you.  And for goodness sakes, tell your friends - I promise I'll do a great job for them.

- Sara
Direct: (780) 710-7669

February Housing Prices Rise with Sales - REALTORS®

Edmonton, March 2, 2012: The REALTORS® Association of Edmonton reports that housing prices were up in all housing categories in February in the Edmonton area. The all-residential average1 price, at $329,911, was up 3.7% from January and up 5.7% when compared to the same month last year.

“Average prices in February were higher than the year-long average price for last year,” said REALTORS® Association of Edmonton President Doug Singleton. “Buyers seem to have confidence and REALTOR® offices are reporting solid traffic. This is lifting prices up and they are already higher than at the same time in the past two years.”

In February, the average price of a single family detached (SFD) home was $375,268, up 3.1% from the previous month. The average price of a condominium in February was $234,973, up 8.5% from the January price. This is higher than all months except May of last year. Duplex and rowhouse properties sold on average for $306,491; a 1.4% improvement from the previous month.

Year-over-year prices were also up in all categories. Single family properties were up 4.8%; condos were up 1.7% and duplex/rowhouses were up 0.2% from the same month last year.

Sales and listings by REALTORS® on the Multiple Listing Service® System in February were both up from January and the sales-to-listing ratio recovered from 36% in January to 46% in February. This indicates that less than half of the residential properties listed were sold and provides fresh property options for buyers who may have been looking for several months. Sellers should be pleased to see that the average days-on-market in February was 54; down from 65 in January.

There were 5,976 residential properties in the local MLS® System at the end of January. Although the inventory was up from last month, it is lower than a year ago when there were 6,389 properties available for sale on the MLS® System.

“Nationally the housing still appears to be soft,” said Singleton. “But the local market is much more robust. Consult your local REALTOR® for the most comprehensive local market information. REALTORS® are here when life happens.”

Activity (for all residential sales on Edmonton MLS® System)

1 Residential includes SFD, condos and duplex/row houses.
2 Single Family Dwelling
3 The middle figure in a list of all sales prices
4 Includes residential, rural and commercial sales

* 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 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.