Written by Alan Kelly, Bōde’s Chief Economist
In July, the Edmonton real estate market still had slightly higher home sales compared to the average of the previous 4 years. Although there has been a slow down compared to earlier in the year, it continues to be a great time for those thinking of selling as inventory is low – meaning homeowners will have less competition to sell their homes – and data shows prices are still higher compared to this time last year.
When you are thinking of buying or selling your home in Edmonton, it is important to understand what is happening in the housing market.
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 market is doing in your local area.
Bōde makes buying and selling your home a streamlined process offering significant time and cost savings along the way.
We are also here to make sure you have the information you need to make the decisions that are right for YOU!
What’s happening in the Edmonton real estate market as of August 2022?
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 continues to see strong sales and low inventory in the aftermath of the COVID outbreak.
New listings in July were up 10% while sales were up just 1% vs. the previous 4 years. Sales have been consistently high since July 2020, however last month saw the end of that trend.
The total number of homes for sale is down 7% compared to the average of the previous 4 years. Inventory has increased quickly in the last 4 months back closer to average levels.
‘Months of supply’ has climbed to 4.2 months which is down just 7% vs the previous 4 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.
Overall, Edmonton prices have are down 1.4% over last month, and up 6.8% over July last year.
What does this mean for sellers?
Right now supply is still slightly low relative to previous years while demand is 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 quickly. 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 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. One way you can move faster is by booking viewings directly through Bōde, so you don’t have to wait for a realtor to schedule your viewings or write your offer.
Market conditions vary substantially by property type, community and price range
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 7% in July vs. previous years, while new listings were up 10%.
Detached homes have generally been the best performing property type since the start of the COVID pandemic as buyers look for more space.
Detached prices are down 1.4% over last month, but up 7.4% over last year.
Apartments:
New listings of apartments were up 11% in July compared the average of the previous 4 years, while sales were also up 11%.
Apartment prices have generally been on a downward trend since 2015. This month saw prices go down 0.9% over last month, while being flat vs. July last year.
New listings of attached homes were up 19% while sales were up 4% in July (compared to the previous 4 years).
Attached prices are down 1.4% over last month, while still being up 6.9% over last year.
What really matters is what’s happening in your specific local property market. There are some communities and price bands where detached homes are performing better/worse, and the same goes for apartments.
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 11 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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