Residential Housing in Edmonton Proving to Be Steady
According to a recently released report by the Realtors Association of Edmonton, the average sale price for residential properties, including condos, row houses, and duplexes, was over $384,000 in July 2016. A significant increase was noted, with the prices soaring 3 percent higher than the same month last year. Figures released by the association also revealed that single-family homes marked a 3 percent increase from 2015, selling for over $450,000 in July. The association’s chairman, Steve Sedgwick, revealed that despite the slow-moving market, they are increasingly seeing strong and steady pricing throughout the region of Edmonton.
At the end of July, there were 8,047 residential properties on the market, which was an 11 percent increase compared to last year. In the Edmonton region, there was a 16 percent drop in residential property sales, with only 1515 units sold. This included a sales decrease of 16 percent in single-family homes and 25 percent in condo sales. However, there was a significant increase in the sales of duplexes and row houses, with the prices going up by 11 percent compared to July 2015.
Just like Edmonton, Calgary’s real estate market also experienced a downturn, with a 12.6 percent decrease in sales over the month of July. However, the city’s local real estate board revealed that the reduced number of listings largely contributed to a further price drop. According to the Calgary Real Estate Board, a total of 1,741 units were sold last month. The total sales for detached homes saw a drop, slightly less at 9.2 percent. However, with only 6,908 units sold this year, sales activity is currently at 22 percent, which is below the 10 -year average and the lowest since 1996.
In July, it took an average of 56 days for a property to sell in Edmonton, which was about 6 days longer compared to the same month last year. Single-family detached homes however sold quicker at 52 days while it took about 61 days to sell condos.
According to Sedgwick, the slowdown in unit sales in the month of July is typical, mainly because both May and June are the busiest months of the year when it comes to sales volume. Sedgwick also revealed that every year, they experience a traditional slowdown in both July and August, followed by an upward trend in September.
In Calgary, layoffs and people leaving the city have largely contributed to the pressure on the housing market, said Ann-Marie Lurie, a chief economist at Calgary Real Estate Board. The economist however revealed that a 10.2 percent drop in listings aided in the reduction of pressure exerted on prices.
There was also a 4.2 percent drop in the city’s overall benchmark price; the benchmark whose major responsibility is to represent the price of a typical home, from July 2015. For detached homes, the benchmark price was $502,300, which was a 3.4 percent drop from last year.
According to Lurie, forcing more people to sell would only contribute to more pressure on the prices. She also stated that considering the fact that they are in the second year of this cycle, the amount of impact will solely depend on how long the cycle will last.
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