Spring Prices Hold Steady Amidst Market Influx
Spring in YEG means a busy real estate market.
Spring season is a bustling time in the city, and the real estate market is no exception. As the sun comes out and melts the snow that makes the thought of hauling boxes in a blizzard so terribly unappealing, sellers and buyers alike have a renewed sense of enthusiasm.
March 2016 saw an unprecedented 63% increase in residences sold. The promise of better weather saw 1364 properties sold in contrast to the 837 bought in February. In year over year comparisons this shows a negligible 1.5% decrease from the same time last year, as the Edmonton market proves a continual resiliency in the face of a so called nation-wide economic crisis, with a particular strain on Alberta. Of the 1364 property transactions last month, condominiums represented 335 of those and the duplex/rowhouse market represented 144 properties. This shows a respective rise of 44% and 82% in these markets.
Just as the winter lull was predicted this March influx was expected seasonally. “Sales, relative to last month, were consistent with the seasonal trends that we expect” comments REALTORS® Association of Edmonton Chair Steve Sedgwick.
However, this positive upward market trend should provide no source of concern to buyers as sale prices remain relatively steady in month over month comparisons. Residential sale prices for March averaged out to $379, 524, a small 3% increase from the month previous, and and even slighter 2% increase from March of 2015 where prices held at $372, 289. A market breakdown of this average shows single family home sales up 0.56% from last year at $439,815, and 4.73% from this February. Condominiums ended the month at $251, 093, up 1.62% from the month previous and 0.55% year over year.
“When looking at housing prices, we have to take into account a number of factors,” Sedgwick said. “Last month, we saw sales of two homes in Edmonton that were priced at more than $3 million dollars. This is the first time that properties at that price point have sold in 2016, and those two sales affected the average price by several thousands of dollars. So it is important that we also look at the median prices as well, to gain a clear picture of the market.”
List prices are also reported as steady month over month and year over year, with a March average of $357,750, a drop of about 1%; the same last year showed an average of $360,000. This also shows a 3% rise from list prices the month previous. Single family home prices increased about 1% to $405, 000, down from $410,000 year over year.
Continues Sedgwick, “Inventory is growing, with more than 3,000 properties coming onto the market last month. Despite the inventory growth, prices are holding steady, with median prices on par with last year, and average prices up slightly due to the sale of high-end luxury homes in March.”
Finally, days on market statistics showed a drop in most all categories of residences, with an average of 53 days on market; 4 days less than the month previous. Single family homes also showed a 4 day drop, down to 49 days on average, and duplex/rowhouses dropping 9 days to an average of 62 days on market. Lastly condominiums were up one day from February of this year, to 58 days.
