For people in the market for a home in Edmonton as winter sets in, the news on the surface appears to be good. Compared to last year, prices have dropped somewhat, meaning that everyone’s dollar should stretch a little further. It’s possible that this trend could continue to grow, as rapidly expanding inventories and relatively slow sales could mean that market conditions are going to favour buyers for the foreseeable future.
Condo Prices Climb Contrary to Rest of Market
While single-family detached homes, duplexes and row-houses were dropping in price this November, condos were headed the other direction. The average price of a condo sold in Edmonton last month was $253,618. This is 3.8% higher than the average sale price in October, making condos the only type of home to have experienced a price increase in the city.
Detached homes on the other hand dropped compared both to October and to November of the previous year. The average price last month for a single family home was $432,862. That represents a 2.62% drop compared to the same time last year, and a 1.4% drop compared to October. The duplex/rowhouse category fell even more sharply to a new average of $339,454. That equalled a 5.5% drop from October, and a year-over-year decline of 3.5%.
Sky-High Inventory May Mean Further Price Drops
One of the predictions being made is that prices may continue to trend downwards in Edmonton due to the very high levels of inventory this year. Wintertime is traditionally the slower season for real-estate sales, so with high inventory and the cold weather both settling in, it is possible that prices in Edmonton will go lower.
The number of available listings at the end of November 2015 was 6,043. This is a shocking 54.71% higher than the number of listings at the same time last year. The massive amount of inventory is definitely changing the real estate market in Edmonton currently, with buyers in almost any given price point having more options to choose from. Not only are more people looking to sell their homes than at this time last year, but new inventory is also being added at a much faster rate. This year, November saw 1,914 new homes put up for sale. That is 34.98% more than were added in November of 2014. When you couple the rapidly increasing numbers of listings with the fact that the total number of sales dropped 2.9% year-over-year, it appears that ample inventory in Edmonton is here to stay for a while.