Edmonton, April 3, 2013:
Association of Edmonton reports that residential property prices in the Edmonton
CMA1 were up again in March. The all-residential price (includes single family
detached, condominiums, duplexes and row-houses) rose 3.5% in a month and single
family detached prices were up 3.9%. Compared to March 2012, the all residential
price was up 4.3% and the SFD price was up 7.0%.
“The average price increases are influenced by the prices paid on particular
properties as well as the product mix in the period,” said President Darrell
Cook. “Because of a shortage of lower priced homes, the average price is pushed
up as buyers move up-market to find a home. The increase in average price may
not increase the market value of a particular property.” The relative number of
homes sold in the $450-650k price range increased from 12.2% to 14.5%
year-over-year while homes under $300,000 dropped from 40.7% of the market to
The average price for a single family detached home was $416,739 in March,
condos were priced at $246,574 (up 6.3% m/m), duplex and rowhouses at $316,110
(down 4.9% m/m) and the all-residential average price was $354,759. SFD prices
peaked in May of 2007 at $424,400.
The demand for homes in the Edmonton area continues to be driven by net job
creation and low unemployment, economic stability and low rental vacancy rates.
Sales were brisk with the sales-to-listing ratio up at 57% for March which
indicates that almost six of the ten homes listed during the month were sold.
Days-on-market was down from 57 in February to 50 in March.
The number of homes available for sale in the MLS® System inventory was up
from 4,183 to 4,741 in March. While this is an increase of 558 properties from
last month, it is down 15.4% from the same time last year. The lower inventory
is exerting upward pressure on prices but has a dampening effect on sales. “When
first time buyers cannot find a house that meets their needs or are forced into
a multiple offer situation, they often remain on the sidelines,” said Cook. “Low
interest rates and rising rental rates create the interest and desire but lack
of suitable properties means they are not able to make the transition to home
ownership at this time.”
REALTORS® are facing some multiple offer situations on lower-priced property
but overall, the market remains in balance with neither buyers nor sellers
having an advantage in most neighbourhoods.
Residential sales in the Edmonton CMA were up 1.14% in March as compared to
March 2012. There were 1,497 estimated sales (1,386 reported) on listings of
2,422 during the month. SFD sales were down 6.63% from last year but condo sales
more than compensated at 8.84% y/y increase. Note that sales numbers are
estimated to reflect late reported sales and make a more accurate comparison
with prior month actual sales.