Edmonton Property Market — Defies Gravity — Oct 2023
The Edmonton property market is currently a seller's market. This means that there is more demand for homes than there is supply, which is putting upward pressure on prices.
At the end of August, the Benchmark price of a detached single-family house in Edmonton was $424,000, down from 427,000 in June. The median house price has been weakening; typically, this is an early warning sign that the market will soften.
A townhouse or rowhouse had a benchmark price of $241,900, and a condominium apartment was valued at $182,500, almost unchanged from a year ago.
While the Edmonton detached house market might soften soon, the condo market appears to be more resilient. This may be due to the greater affordability of apartment units. However, the median value of apartments being bought has dropped dramatically compared to a year ago.
There are a few factors that are contributing to the seller's market in Edmonton. One factor is the low inventory of homes on the market. At the end of September, there were only 6,575 homes for sale in Edmonton, compared to 7,801 in September of 2022. Across all property types, 2,058 homes were purchased in September. That active listings to purchases ratio means Edmonton has roughly 3.5 months’ worth of inventory. Anything below five months is considered a seller’s advantage.
There are a lot of people who are looking to buy homes in Edmonton, including first-time homebuyers, families, and investors. The demand for homes is being driven by the city's strong economy and low cost of living.
Of the major Canadian urban centres, Edmonton has a high median income and a low average home price.
The seller's market in Edmonton is expected to continue for the foreseeable future. However, there are some factors that could cool the market:
continued high mortgage rates
a collapse in oil prices
an increase in active home listings.
If you are thinking of buying a home in Edmonton, it is important to be prepared for a competitive market. You will need to be pre-approved for a mortgage and be ready to act quickly when you find a home that you want.
Here are some tips for buying a home in a seller's market:
Get pre-approved for a mortgage. This will show seller real estate agents that you are serious about buying a home and that you have the financial capacity to do so.
Be prepared to act quickly. When you find a home you want, be prepared to make an offer within a few hours of the viewing. This also means that you will want to inspect the property closely during your viewing to help ensure there are no major issues with the home’s condition.
Be willing to negotiate. In a seller's market, you may have to negotiate and compromise. You may not get all the items on your wish list.
Be patient. In a seller’s market, It may take some time to find the right home and you might have to bid on several homes before you finally lock down your home.
If you are selling a home in Edmonton, you are in a good position to get a good price. However, it is important to price your home competitively to attract buyers. If people see many competing buyers at your open house or during viewings, then they are more likely to offer a price above listing value.
The Edmonton property market is a seller's market, but it is still possible to buy a home. By being prepared and willing to act quickly, you can increase your chances of success.
