Edmonton, January 7, 2015: The REALTORS® Association of Edmonton released their annual housing forecast today at a seminar at the Northlands Expo Centre attended by 700 REALTORS® and business people. President Geneva Tetreault forecast that sales of single family homes in the Edmonton Census Metropolitan Area will remain at the same level as 2014 around 11,500 sales.
Last year exceeded modest expectations with a growth of 11% in all residential sales. Tetreault expects another big year for sales of single family homes in Edmonton but little growth. “The cool down of employment growth and uncertainty of oil prices, may leave buyers more cautious in 2015. This is likely to be offset by the potential increase in mortgage rates in late 2015. Buyers will want to take advantage of the record low rates for the first half of the year,” explains Tetreault.
The number of sales of condo, duplex and rowhouse sales will increase by a modest 2.5% throughout the region as these properties offer affordability to new home owners and income potential for investors in a tight rental market.
Prices, as usual, will fluctuate through the year but the 12-month average price for a single family detached property is anticipated to increase about 3.5%. Condominium property average prices are projected to increase at a lower rate of about 2.5% over the year due to an influx of new condominiums hitting the market.
Tetreault’s forecast was supported by five other speakers at the seminar including Todd Hirsch, Chief Economist, ATB Financial; Nolan Crouse, Chair, Capital Region; Jason Sutton, President, Canadian Home Builders Association Edmonton; Christina Butchart, Senior Marketing Analyst, Canadian Mortgage and Housing Corporation; and Simon O’Byrne, VP, Stantec.
There are 3,200 REALTORS® operating in the greater Edmonton area which extends as far as Cold Lake, Wetaskiwin, Drayton Valley, Vegreville and Westlock.
Edmonton, January 5, 2015: Sales of residential property through the Edmonton Multiple Listing Service® (MLS®) System in 2014 in the Edmonton CMA were over 11 percent higher than in 2013, exceeding growth expectations by a large margin. This increase was reflected across all property types including a 9.8% increase in sales of single family detached properties, an over 11% increase in condo sales and a 25.4% increase in duplex and rowhouse sales. There were 18,991 residential sales reported in 2014 as compared to 17,077 in 2013.
Prices were also up compared to 2013, with single family homes finishing the year 5.6% higher over last year at an average of $432,713. For 2014, the average price of a condo was $252,175 (up 4.5% from 2013) and the average price of all residential properties was $367,228 (up 5.2% from 2013).
“2014 was a very busy year for your local REALTOR®. Edmonton and the surrounding areas experienced a great increase in volume of sales, but also a healthy increase in price. We did not see the sudden spikes in prices that we saw in 2007, but we did surpass the single family record price in March of 2014,” said REALTORS® Association of Edmonton, President Greg Steele. “An increase in newly built affordable condos and multifamily units coupled with historically low mortgage rates encouraged new buyers into the market. We also saw great migration into the province and a very tight rental market. These factors all play into a very active market in 2014.”
The all-year sales-to-listing ratio was 70% (up 2% from 2013) with average days-on-market at 47 days (down from 53 last year). The active market was highlighted by a year-end inventory of just 3,059 properties, a similar number to the end of last year (3,049).
As is seasonally normal, prices and sales dropped in December from November, but are up year over year from December 2013 in all categories. The price of a single family detached property dropped 3.3% from $444,312 in November to $429,470 in December. Condo prices dropped 3.4% in December to $247,099 while duplex/row house prices increased slightly from November to $355,978. December all-residential unadjusted sales were exactly the same as 2013 at 770 and down almost 38% from last month.
“Now that the holiday season is over and a new year is here, we expect listings and sales to begin to ramp up again,” said Steele. “We encourage both potential buyers and sellers to talk to their local REALTOR® about their options in this market and what is right for them.”
Highlights of MLS® System activity (for all-residential sales in Edmonton CMA1)
|December 2014||M/M % Change||Y/Y % Change|
|SFD2 average3 selling price – month||$429,470||-3.30%||1.80%|
|SFD median4 selling price – month||$399,900||-2.40%||4.30%|
|Condominium average selling price||$247,099||-3.40%||5.50%|
|Condominium median selling price||$220,000||-5.60%||0.50%|
|All-residential5 average selling price||$359,479||-5.80%||3.20%|
|All-residential median selling price||$343,500||-3.90%||5.70%|
|# residential listings this month||932||-34.20%||19.80%|
|# residential sales this month (reported)||770||-37.90%||0%|
|# residential inventory at month end||3,059||-21.70%||0.30%|
|# Total6 MLS® System sales this month||1001||-32.70%||0.90%|
|$ Value Total residential sales this month||$315 million||-34.20%||-1.72%|
|$ Value of total MLS® System sales – month||$367 million||-35.20%||1.00%|
|$ Value of total MLS® System sales - YTD||$9.4 billion||4.60%||15.10%|
1 Census Metropolitan Area (Edmonton and surrounding municipalities)
2 Single Family Dwelling
3 The total value of sales in a category divided by the number of properties sold
4 The middle figure in a list of all sales prices
5 Residential includes SFD, condos and duplex/row houses.
6 Includes residential, rural and commercial sales
3 Average prices indicate market trends only. They do not reflect actual changes for a particular property, which may vary from house to house and area to area. Prior period sales figures have been adjusted to include late reported sales and cancellations and therefore reflect a more accurate view of the period than previously reported at month end. The RAE trading area includes communities beyond the CMA (Census Metropolitan Area) and therefore average and median prices may include sold properties outside the CMA. For information on a specific area, contact your local REALTOR®.