Edmonton real estate resale declines after months of high demand

peterpressmanMay 20, 2022

The market is leaning towards a balanced state due to slower sales and higher inventories.

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May 20, 2022 •• 12 minutes ago •• Read for 3 minutes •• Join the conversation

Paul Gravel, chairman of the Edmonton Real Estate Agents Association, said buyers may not face multiple bids in the coming months as inventory is expected to increase. Photo courtesy of Michael Vi, iStock / Getty Images / /Post media

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Edmonton real estate sales have fallen from record highs set at least earlier this year.

Based on the latest statistics from the Edmonton Real Estate Agents Association, there were 2,919 resales in the Greater Edmonton area in April, down almost 11% from March.

Still, last month’s sales were up 2% year-on-year.

RAE Chair Paul Gravelle said the slowdown from the record high of 3,283 sales set in March is not surprising.

“You can only keep breaking records for that long,” says Gravelle. “The market is starting to cool as spring inventories increase and supply and demand are balanced.”

In April, new listings increased by almost 9% from the same month last year and increased by almost 12% from March to more than 4,700.

However, prices continued to rise, with the average price in April rising 7% compared to the same month last year to about $ 417,000. Still, average prices have risen only about 1% since March. This reflects an improvement in the situation for buyers who are in constant supply tightness, especially in the affordable range of single-family homes.

“Supply in the $ 300,000 to $ 400,000 range remains tight, but the high end of the market is slowing down a bit,” he says.

Due to continued high demand, the price of single-family homes last month was $ 510,988, up more than 11% compared to April 2021. In the city and its surrounding areas, single-family home sales reached 1,704 in April.

The total is actually down more than 6% from last year. This is likely to reflect a reduced selection in the more affordable range, Gravelle said.

In contrast, last month’s sales increased in the row / semi-detached and apartment segments as prices rose.

Duplex / column sales increased slightly year-over-year, with average prices rising about 17% to about $ 409,000.

Apartment condominiums have the fastest growth in sales, up 27% year-on-year. Similarly, the average price in April reached about $ 237,000. This is an increase of about 3 percent from the same month last year.

“The condos are still in stock, so buyers still have a choice,” says Bev Hasinoff of local realtor LivReal Estate.

She adds that although sales and prices in this segment are rising, they have not yet fully recovered like single-family homes.

The busiest segment of the market continues to be homes ranging from $ 400,000 to $ 500,000, especially in surrounding areas such as Sherwood Park and St. Albert. Still, Hashinov has even seen a slight easing in demand at the hottest corners of the market.

“Currently, we’re still in the seller’s market, but the enthusiastic pace is slowing,” she says.

Moreover, easing demand is not a bad sign for the market as a whole, Gravelle says.

“It’s great that home prices soar, but it’s only really beneficial for those who sell and don’t buy homes.” Otherwise, sellers still have to buy homes, with tight supply. He explains that he is facing rising prices.

Sales are expected to slow further, but Gravelle predicts that the rest of the busy spring market is likely to remain strong by historical standards.

“But due to the increased inventory, buyers will not face multiple bids as often as in recent months.”