Edmonton inventory returning to normal levels as sales slow down.
Edmonton’s real estate continues to improve. If you are looking to sell your home, you will have very little competition and homes ARE selling.
It is a new year and a new story when it comes to Edmonton’s real estate market. Home buyers continue to purchase in Edmonton – due to the strong economy as well as an increase in migration. Many sellers seem to be sitting back to see what is happening to interest rates, however, the homes on the market are moving.
We empower home buyers and sellers with the data they need to be successful. When you arm yourself with transparent data, you will feel more confident in setting the price of your home and selling it or buying at the right price.
Obviously, there are many important factors to consider (what kind of home you have, what community etc.), so it’s important to look specifically at what the housing market is doing in your neighbourhood. It is dead-easy to look at our data with a personal lens.
Bōdesellers are more successful and actually make more money, on average, than the rest of the market. We are also here to make sure you have the information you need to make the decisions that are right for YOU!
February 2023 Edmonton Market: 12% Sales Growth & 42% Inventory Drop
Let’s start with a Macroeconomics view
To understand what’s happening in the real estate market you have to look at supply and demand.
The best proxies for supply and demand are:
Supply
New supply: New Listings (i.e. the number of homes recently listed for sale)
Total supply: Inventory (i.e. the total number of homes listed for sale)
Demand
Sales (i.e. the number of homes recently sold)
Supply & Demand
Months of Supply (i.e. the number of months it would take to sell all current inventory at the current rate of sale)
These metrics are the best indicators of the health of the real estate market. Let’s look at what they show us.
Edmonton inventory returning to normal levels as sales slow down.
New listings in January were down 3% while sales were down 2% vs. the previous 5 years.
Sales had been consistently high since June 2020, however the last 6 months have seen the end of that trend.
The total number of homes for sale is down 14% compared to the average of the previous 5 years.
‘Months of supply’ has climbed above 5 months which is down just 17% vs the previous 5 years.
Fewer months of supply make conditions more favourable for sellers, while higher months of supply is more favourable for buyers. The current level would typically be seen as ‘balanced market’ between buyers and sellers.
Low inventory & fewer months of supply makes conditions more favourable for sellers, while more inventory and higher months of supply is more favourable for buyers.
Overall, Edmonton prices are down 1.2% over last month, and down 3.7% over January last year.
What does this mean for sellers?
Right now supply is slightly low relative to previous years while demand is slightly below average, which means it is a more balanced market for people thinking of selling their home. Sellers who price their home well will still be able to sell in this market. However, your specific property value will be determined by market forces both within your community and against similar active listings. To find out what supply and demand look like for your specific community, click here.
What does this mean for buyers?
There are currently slightly fewer homes for sale than there have been in previous years. This means active buyers need to move fast to beat other buyers to available listings.
Market conditions vary substantially by property type, community and price range
Edmonton's Detached Homes
Above, we’ve looked at the overall market for Edmonton, but different segments are performing very differently. Let’s look at a few examples.
Sales for detached homes were down 5% in January vs. previous years, while new listings were up 6%.
Detached prices are down 1.2% over last month, and down 3.3% over last year.
This has led months of supply to be down 42%, which means it continues to be a relatively good time to be selling a detached home, and one of the toughest times to be buying, as there’s less inventory than normal to choose from.
Detached prices increased quickly in early 2022, putting prices above their previous record levels from 2014. However detached home prices are up 0.5% over last month and up 6.7% over January last year.
Edmonton's Apartments
New listings of apartments were down 39% in January compared the average of the previous 5 years, while sales were down 38%.
There are currently 38% fewer apartments for sale than typical for this time of year a significant drop over 6 months ago.
Apartment prices have generally been on a downward trend since 2015. This month saw prices go down 0.6% over last month, while being down 3% vs. January last year.
Edmonton's Attached Homes
New listings of attached homes were up 10% while sales were up 26% in January (compared to the average of the previous 5 years).
Total inventory of attached homes has been incredibly low in recent months. It is currently 52% lower than the average of the previous 5 years.
Attached prices are down 0.6% over last month, while being down 1.9% over last year.
What really matters is what’s happening in your specific local property market. There are some communities and price bands and property types where homes are performing better/worse than market average.
It’s critical to understand the dynamics in your local property market
To understand your local property market you need to look at your local data. Head over to Bōde’s new and improved Market Data dashboard, the only place where you can see all the data yourself, including being able to filter on community, property type, and price range to see exactly what’s happening where you live.
You can also see the sold price of any home that has sold in the last 12 years using Bode’s Sold Data page.
If you’re thinking about selling, take a look at how Bōde helps sellers sell for 1.3% higher prices while paying 50% less commission.
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