Photographer: Campaign Creators | Source: Unsplash
With the recent benchmark interest rate hike by the Bank of Canada, which was the largest in over 20 years, many people are wondering about the state of the Edmonton housing market. Are Edmonton house prices dropping? Should we wait to buy a house? Is the housing market going to crash?
If the first half of 2022 was characterized by bidding wars, selling over the list price, and a seller's market, the second half of the year is expected to see a return to a more manageable and normal pace. It's important to remember not to panic. The Edmonton housing market is still one of the best in the country, particularly for first-time home buyers.
Edmonton Real Estate Market Update
Infographic and statistics courtesy of the REALTORS® Association of Edmonton
Undoubtedly, rising interest rates and inflation have cooled down what was a fiery hot market since the beginning of the year. According to Paul Gravelle, Chair of the REALTORS® Association of Edmonton, there has been a gradual decrease across the board in the Edmonton real estate market. However, the overall market forecast remains positive.
Sales slowed in June but prices holding steady
Infographic and statistics courtesy of the REALTORS® Association of Edmonton
Single-family home sales were down 8.2% compared to June 2021 and 11.6% compared to the previous month. Condo unit sales increased 1.8% from June 2021 but decreased 4.3% from May 2022. Duplex/rowhouse unit sales were down 4.7% year-over-year and 11.6% from the previous month.
The average price of single-family homes was $494,302, representing a 4.5% increase compared to June 2021 and a month-over-month increase of 0.3%. Condominiums saw a slight decrease of 1.6% year-over-year, selling for an average of $238,377, which is down 0.3% compared to May 2022. Duplex prices increased 9.1% from June 2021, selling at $387,811, but saw a 2.0% decrease from May 2022.
Strong Alberta economy will continue to attract newcomers to the province
So, are Edmonton house prices dropping? While a slight correction may be possible after the super-hot sales season, experts predict that Edmonton house prices will continue to climb. The strong job market and the value offered in the Calgary or Edmonton housing market are attracting Canadians leaving the country's most expensive cities. Additionally, the influx of hundreds of thousands of new Canadians expected in the coming years will sustain the demand for homes.
Tips for selling in today's market
If you are planning to sell your home in today's market, here are some tips to consider:
- Don't panic.
- Expect your home to be on the market for a longer period.
- List your home at a competitive price, showcasing enticing value.
- Adjust your expectations and be prepared for a slower sale.
Tips for buying in today's market
If you are considering buying a home in today's market, here are some tips for you:
- Don't panic.
- Keep in mind that the cost of borrowing has essentially doubled since the beginning of the year.
- Adjust your expectations and be prepared for the possibility of higher interest rates when your term is up.
- Have faith that there is incredible value in the market, and buying a home in Edmonton is still an excellent investment.
By following these tips, you can navigate the current market with confidence.
Please note that this article is for informational purposes only and does not constitute financial or real estate advice.
Call/text Wally at 780.238.7384 for a consultation today.
