RE/MAX Real Estate Blog

A regular focal point of municipal discussion, and oft mention topic here on the blog, has been the City of Edmonton’s Evolving Infill project.

The aggressive program has made great strides to effectively amend municipal zoning bylaws to make infill projects a desirable and efficient an option as possible for homeowners, investors, and developers. In the face of a skyrocketing population quickly running out of options for private residences, the city has allotted a great deal of resources to what they see as their primary solution to this major issue facing the city’s residents. Creating allowances for higher density options in established neighbourhoods is seen as more viable than costly urban sprawl around the city’s borders.

Image Credit: Edmonton.ca

The most recent stage in the progression of the project has been an easing of zoning regulations for the narrowing of lots. New regulations will allow for land in RF1 zoned areas to be parcelled into smaller widths than previously allowed, to a minimum of 7.6 M (25 feet). According to edmonton.ca:

“The Single Detached Residential (RF1) Zone provides for small scale housing, such as single detached houses, semi-detached and duplex housing. The RF1 zone is the least dense among standard residential zones and found across throughout Edmonton”

The focus has been on lower density zoned areas, as they have the most potential for future expansion to create more residential space. Other zoning changes recently approved by city council have included that of garage and garden suites. Slackened laws now permit these types of residences to be built at “any location on a street in residential areas”.

According to city statistic, there are 54,833 lots with appropriate RF1 zoning that meet the criteria for subdivision into narrower lots, all within mature and established city neighbourhoods. The city of Edmonton has provided maps detailing the lots within each area’s neighbourhoods that are eligible, here are the Central, Northwest, Northeast, Southwest, and Southeast maps provided by the city for development research. Each area can be clicked on to see a more detailed, neighbourhood level plan.

 First-time buyers drive the Edmonton housing market. REMAX has more just CLICK HERE for the Re/Max Spring Trends Market Report!

The EREB has just reported some interesting, and potentially unpredicted, statistics based on cumulative March numbers. Sweeping trends for spring appear to be slight drops in total overall residential sales. Yet despite this downturn, the strength of the market has remained unaffected with average sale prices continuing to rise.

Sale prices across the board increased about 3%, with duplexes seeing the highest year over year increase of 6.9%. Single family dwellings rose 1.5% since March of last year, and the smallest growth of all the residential categories were condominiums which saw a 1.2% increase. March’s average single family home sold for $438,880, while duplexes and row housing went for around $354, 022, and condomiumns rounding out at the lower $249, 841.

As mentioned, despite small pricing increases, surplus inventory which has been seen flooding the market since early spring, caused a decrease in overall sales. The same time last year saw 1,554 homes sold, while a decrease of 6.5% overall led to only 1,453 closed transactions. 876 single family dwellings were sold in March of 2015, a 4.5% year over year decrease, while 416 condominiums were sold in contrast to the previous years 474. Duplexes and row houses, though showing the highest price increases, were the only property category to also show an increase in inventory sales, which went up a full 6%.

REALTORS® Association of Edmonton President Geneva Tetreault explains that these spring sales figures are actually a positive byproduct of our fairly stable market over the past few years:

“The fact that our prices did not have the dramatic increases seen over the past few years in other cities like Calgary, Toronto and Vancouver means we have not experienced the same overvaluation. That is why our prices are not taking the same hit even though our inventory is way up and sales are slightly down. A more accurate valuation should keep our average prices more stable.”

CTV Edmonton interviewed Tetreault on the topic of the EREB’s figures in this recent report.

Geneva Tetreault discusses the highs and lows of the spring market with CTV news.

The March market report also touched briefly on rural market statistics for the surrounding Edmonton area. There were 143 residential sales this March compared to last year’s 156, a decrease of 8%. Mirroring the trends showing up in the city, residential listings have seen an increase of nearly 12%.

Tetrault explains that atmosphere of this new market is still strongly oriented towards buyers:

 “The big story continues to be the increase in inventory. We ended 2014 with a fairly low inventory. The influx of new listings means that buyers now have the opportunity to be a little more choosey. Having a REALTOR® help you navigate the market is always a wise decision, particularly in a complex market like ours.”

With 5, 944 properties on the market, 3,152 of those new MLS listings in March alone, it’s easy to see how buyers are experiencing a very different climate than that of 2014.

CLICK HERE to discuss the market potential of your home with a realtor, or to search for one of the many available properties in the Edmonton area.