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The Edmonton market is overheating, but affordability remains an important selling point

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Budget homebuyers still have options in some parts of Edmonton, but even affordable options like townhouses are rising in price, creating fierce competition in an increasingly fierce market. The buyers facing are getting harder.

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Average home prices in the Edmonton region reached a record high of $ 411,464 in February 2022 and $ 493,000 for single-family homes, but still far in some older districts, such as the north-central and northeastern parts of Edmonton. There are many cheap houses in.

Townhouses, duplexes and Nagaya (usually more affordable options) are still low cost, but even these prices are rising.

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The average selling price for these home types was $ 375,000 in February, up 9% year-on-year, according to data from Multiple Listing Services shared by the Edmonton Real Estate Agents Association. About half of these homes sold in the first two months of 2021 were less than $ 325,000, but by the end of February, over 75% had sold above that price.

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While there are still affordable options, Edmonton’s Realtors Association Chair Paul Gravelle says it is creating competition for low inventory and bids available.

“Last month and a half we had the lowest inventory ever, so we don’t have a lot of lists to choose from. That would mean more buyers and more lineups than properties,” he said.

“It’s definitely more difficult for first-time homebuyers and those moving from townhouses to single-family homes.”

According to James Knull, a member of the National Association of Realtors at Mogul Media Group, homes sell as soon as they hit the market, and sell for days or even hours after being listed online.

Low-average and average-range homes are often the places with the highest prices and the interest of shoppers.

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“The speed and price of homes are very noteworthy,” says Knull. “There is a lot of competition. There is actually not enough inventory to meet demand, so prices in the affordable range are actually rising.”

According to Knull, starter properties in “okay places” were in the low-priced range of $ 300,000 last year, but have now risen to a medium-to-high price of $ 300,000.

One option Knull recommends to future buyers is to increase their budget to include homes with secondary suites, if possible. Some townhouses also have secondary suites, which make these purchases more affordable in the long run.

A recent search of the REALTOR.ca list shows that most single homes for less than $ 300,000 are located in the old districts of central and north Edmonton south or around the Yellowhead Highway.

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For duplexes or row houses, the options extend to areas outside the city, such as Edmonton’s north and northeast, west and south. Many are still listed under $ 200,000.

Fast sale

Jarod English learned how hot the market was when he put his home in southeastern Edmonton for sale in February.

He received 14 offers and sold them for $ 393,000 within three days. This is $ 28,000 higher than the asking price.

“There was an offer that people wouldn’t even go inside,” he said. “I wanted (competition) — I didn’t expect it to be that fast. I thought I’d probably do it for a couple of weeks or a month, but basically I could do it right away. rice field.”

He believes that the basement suite, which is attractive to investors who want to rent it, is a major factor.

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Some even made offers without inspection conditions — although the winning offer included one.

According to Gravelle, refraining from testing is a major risk he does not recommend. He said it could put buyers in difficult places where they are facing huge unexpected costs for future major repairs.

City initiative is aimed at helping

Home prices are generally set by the market, but the city of Edmonton has several programs to address the issue of affordability, said spokesman Matt Pretty.

“The good news is that there is still one of the most affordable housing markets compared to other major cities in Canada,” he said.

The city aims to increase the proportion of infills in all housing development and plans to grow further within the city’s boundaries. Part of this is done through the development of surplus school land.

“The city also has a program called First Place, which makes the extra school grounds the first home for homebuyers,” Pretty said.

“The incentive for this program is to postpone land costs for five years to make initial costs more affordable.”

For more information on the city’s programs, please visit its website.

lboothby@postmedia.com

@laurby

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The Edmonton market is overheating, but affordability remains an important selling point

Source link The Edmonton market is overheating, but affordability remains an important selling point

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