Real estate volatility has been the name of the game for years in the largest cities in Canada. However, the Edmonton real estate market offers a much more stable option for homebuyers, even in the face of a certain amount of economic uncertainty in Alberta. Although some aspects of the market have shifted in Edmonton, overall, the market was stable and predictable this November.
When comparing the year-to-date sales in the Edmonton market, there was a slight drop off in the total numbers. In 2015, by the end of November 16,579 residential properties had been sold, while that number dropped to 15,408 in 2016. Comparing the sales for just the month, 2015 and 2016 saw 1,162 and 978 sales respectively. The largest drop off was in the single-detached homes category, going from 710 sales in November of 2015 to 589 this year. Interestingly, the sales of duplexes and rowhouses counterbalanced the trend by increasing somewhat: 99 of these types of properties sold in 2015, compared to 112 this year.
Prices Increase Very Slightly in 2016
Overall, the price increases in Edmonton are certainly nothing to worry potential buyers, as they are so slight as to be essentially negligible when taken in context with inflation. The average sale price of all types of residences in November was $373,174. In 2015, that same figure sat at $369,082. The sale of a few large properties in November may have skewed these figures somewhat, as the difference between 2015 and 2016 is even smaller when looking at the average prices of all homes sold throughout the year up until the end of November. In that context, the 2015 average of $372,560 increased by less than $1,000 to $373,400 in 2016.
This stability is not quite as rock-solid when looking at individual residence types. In the condo market, the average sale price actually decreased in Edmonton from $254,668 last year to $241,569 in 2016. In the average price for all home types, this decrease was offset by the increase in the price of single-family detached homes, which rose from an average of $432,402 in 2015 to $440,496 this year.
Listings Are Tightening in the Edmonton Market
Listings in the city are starting to tighten up as we move into 2017. The total number of new homes listed for sale in November of 2016 was 1,825 compared to 1,919 in the previous year. A reduction is also seen in the year-to-date listings which dropped from 30,714 in 2015 to 30,153 in November of this year. The big shift that emerges here is in the sales to listings ratio, which was at 61% last year compared to only 54% this year.
Overall, Edmonton is a picture of stability at the moment. However, it is important to realize that as the listings tighten in the city, the very moderate price increases currently observed could start to grow. The true impact of this shift will likely have to wait until the spring of 2017, to emerge as the winter slowdown diminishes and there is more clarity in the economic environment of Alberta.
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