Edmonton housing sales down but sale price up
While the number of housing sales in Edmonton in April dropped by 13% compared to last year, the average sale price climbed 3%, show the latest numbers.
Single family homes sold for $438,641, on average, according to the Canadian Home and Mortgage Corporation (CMHC).
Geneva Tetreault, president of the Realtors Association of Edmonton, said the price rise is due, at least in part, to a record setting tight market last year with low inventory.
"It was a really tight market," Tetreault said. "What's happening now is as the inventory is increasing, it is giving some of those people that couldn't get into the market last year an opportunity to get in."
The CMHC House Price Analysis and Assessment Framework looked at large housing centres across Canada, evaluating them for risk factors like acceleration in house prices, overvaluation and overbuilding. The market analysis put Edmonton at a low risk for all factors.
Real estate markets in cities including Quebec, Winnipeg and Regina were flagged at a high risk of overvaluation, while Toronto, Montreal and Calgary, presented a moderate risk.
But in Edmonton the number of sales were down in all residential categories except for duplexes and rowhomes.
Condominiums took the biggest hit with 20% less sold this April when compared to last April.
While more inventory is making it easier this year for first-time home buyers to buy in, Tetreault warned their could be a slight decrease in sales prices due to basic supply and demand economics.
"If inventory keeps increasing, I think it's reasonable to expect that we would see a little bit of a decrease in price at some point in the year, but so far the spring market has been maintaining," Tetreault said.
The total residential listings in Edmonton jumped to 3,298 in April, up from 2,977 in April of last year, the highest number of listings for this period over the last five years.
Tetreault added the CMHC numbers confirm that Edmonton's housing market continues to be stable.
"We've always felt and maintained for quite a long time that we are not on the verge of a bubble popping in the housing market, and I think the report is just reinforcing what we've been saying all along," said Tetreault.
Realtors Association of Edmonton housing stats:
• Reported sales are down in all categories except duplex/rowhouse, which are up over 24%.
• Single family sales were 1,001, down 13% over last April.
• Condos took the biggest hit, down 20% over last year with 432 sold.
• Despite a decline in all residential sales, the average sale price was $337,270, up 3% from April last year.
• Single family dwellings sold for an average of $438,641 (up 2% from last April), condos for $252,935 (up 0.2% y/y) and duplex/rowhouses were $356,022 (up 7.23% y/y).
• April residential new listings were up 11% from last year at 3,298.
• Average days on market were 44 compared to just 42 in April 2014.