Edmonton Condo Values Holding Strong Despite Sales Trending Down
Daniel Crook
other
Unlike many other Canadian cities, Edmonton home prices have remained steady through September, despite a dip in sales across all housing categories, according to the Realtors Association of Edmonton. The average price of a home was $375,000, down just 0.7% year-over-year, while sales in the area saw a more significant decrease of 15.7% over last September.
Declining Number of Sales is Becoming a Trend
The dip in sales is nothing new as Edmonton has seen the number of sales decrease consecutively since April. In September there were a total of 1,581 residential sales, a month-over-month decline of 12.2% from August. Single-family homes continue to be the most popular option for buyers as 894 traded hands. Edmonton buyers, like many other buyers across Canada, are more hesitant to part with their money following five interest rate hikes so far this year. The rate hikes have heightened the cost of borrowing and are a major contributor to the slowing of real estate markets. As interest rates are expected to rise again this month, it’s possible this trend could continue throughout the fall.
- Read: Bank of Canada Announces Fifth but not Final Interest Rate Increase for 2022
A Rise In Inventory Could Bring More Buyers Into Market
Although sales have steadily declined, inventory in the city is improving. After reaching historic lows in the earlier part of the year, residential listings increased 1.7% over August 2022 and 3.7% since September of last year, for a total of 3,140 new listings in the Greater Edmonton area. “As we transition into the fall months, we’ve started to see an increase in the total number of homes available as people are looking to sell before the holidays,” says Realtors Association of Edmonton Chair Paul Gravelle. As more Albertans list their homes, we may see the prospective buyers that are sitting on the sidelines enter the market.
- Read: Variable or Fixed-Rate Mortgage? 4 Tips to Help You Decide Which to Choose While Interest Rates are Rising
Sellers: Condo Prices are Holding Strong
Average prices are holding strong, dipping just 0.4% month-over-month. Condos are still the standout property in the city, holding their value better than even detached homes. Month-over-month, condo prices have only dipped by 0.2% from $220,051 to $220,013. Year-over-year, the average price has decreased by 1.9% from September 2021. This is a great signal for prospective sellers that are considering listing their property. Although, be prepared for the property to spend a little longer on the market. Like with other dwellings, condos are sitting on the market a little longer, currently at an average of 56 days on market, up from 54 in August. Single-family homes have gone up by seven days over August to 44 and duplexes by eight to 45 total days on market.
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Other property types are also holding steady month-over-month; single-family home prices averaged $463,051, only a 1.1% dip from August. The largest decrease has been in the duplex market, decreasing by 4.3% to $375,923, but a strong year-over-year increase of 11.2%.
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