A few other interesting notes:
- Condo prices went down 7.4% month-over-month, which really just shows how significant the sale of a few high-end condos can be on the average price, so beware of relying too much on averages. The real numbers to watch are the year-over-year trends and if those trends stick.
- I am hearing more and more of an extremely tight rental market. The folks at REIN (the Real Estate Investment Network) have long forecasted this to be one of the "canaries in the mineshaft" for price increases on the horizon, and they call Edmonton one of the top places in Canada to invest in real estate (more info on their blog HERE). Whether or not this will happen right away will of course be seen in the future, but I expect that our market will at least hold stable, especially in central areas where there is high rental demand.
- The wet weather has brought out the worst in many foundations. I am consistently showing homes with water issues in their basements. If you are a homeowner, I can't stress the importance of maintaining a positive grade (i.e. the ground around your house must slope away from your foundation), clean eavestroughs and preventative measures.
Enjoy August in our beautiful City! The Folk Fest, Fringe and more are upon us!
Edmonton experiencing robust housing market
Edmonton, August 2, 2013: Sales of residential properties are up in double digit increments in all categories when compared to last year, according to the REALTORS® Association of Edmonton. Total residential sales in July were up 24.9% year-over-year with 1,875 sales (1,736 reported). Sales figures are adjusted to account for unreported transactions at month end. Prices were also up year-over-year in all categories.
The average price for a single family detached (SFD) property in the Edmonton Census Metropolitan Area (CMA) in July was $410,372, down 0.5% from June but up 3.4% from a year ago. Condominium average prices dropped 7.4% m/m but were up 2.6% y/y at $242,516. Duplex/row house prices were up 8.6% y/y (down 2.8% m/m) at $330,906. The all-residential average price in the Edmonton CMA in July was $350,726 (down 2.5% m/m, up 3.3% y/y).
“These are the highest figures for July that we have seen since 2009,” said President Darrell Cook. “Prices and sales have peaked for the year and the month-over-month numbers are lower than June but when compared to last year our market is very robust. Although listings are up over the same time last year, our inventory has slipped by almost 250 units. Going forward, some buyers may have to consider compromises to find their new home in this market.”
The sales-to-listing ratio of 68% was the result of 2,543 residential listings and 1,736 residential sales in July. The total value of real estate sales through the Edmonton Multiple Listing Service® System in July was $814 million; up 18% from July 2012.
Environics Analytics, a Toronto-based data analytics firm, reported last week that the average net worth of an Edmonton household** was $433,970 in 2012, up 1.6% from 2011 as compared to the Canadian average net worth of $400,151.*
“Despite the rain and flooding in Alberta last month, the housing market has thrived,” said Cook. “Edmonton has jobs, housing options, and an economy that is attracting newcomers to the city and ensuring that current residents have an appealing lifestyle.”
The average days-on-market was down one from July 2012 at 49 days, which means that an average sale was completed in about a month and a half.
*WealthScapes 2013 Reveals Rising Fortunes Among Canadians
** Edited August 8, 2013
MLS® System Activity (for all-residential sales in Edmonton CMA1)
|July 2013||M/M % Change||Y/Y % Change|
|SFD2 average3 selling price – month||$410,372||-0.50%||3.40%|
|SFD median4 selling price – month||$385,000||1.30%||5.90%|
|Condominium average selling price||$242,516||-7.40%||2.60%|
|Condominium median selling price||$225,000||-7.20%||2.30%|
|All-residential5 average selling price||$350,726||-2.50%||3.30%|
|All-residential median selling price||$335,000||-1.00%||3.10%|
|# residential listings this month||2,543||-6.20%||5.70%|
|# residential sales this month||1,736||1.90%||15.70%|
|# residential inventory at month end||5,834||-4.00%||-6.60%|
|# Total6 MLS® System sales this month||2,320||0.60%||12.90%|
|$ Value Total residential sales this month||$704 million||-2.30%||16.10%|
|$ Value of total MLS® System sales – month||$814 million||-3.20%||16.60%|
|$ Value of total MLS® System sales - YTD||$5.01 billion||2.18%||4.20%|
1 Census Metropolitan Area (Edmonton and municipalities in the four surrounding counties)
2 Single Family Dwelling
3 Average: The total value of sales in a category divided by the number of properties sold
4 Median: The middle figure in an ordered 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®.