Unexpected Summer Dip
As mid-summer statistics roll in a small but noticeable decline in residential sales figures can be detected. This slowing of sales is particularly noticeable when compared to figures from the same time last year, when the market was unusually strong in the face of growing economic difficulties present in Alberta and throughout the country.
The present state of the market, as summarized by Steve Sedgwick, REALTORS® Association of Edmonton Chair, is a tension between sales figures and prices:
“Although June’s residential unit sales are up slightly over May, we did not see the numbers set in June of 2015. Also notable is that the sustained lull in sales we have seen over the past two years has not been reflected in average price. Continued sales of higher priced properties in the region have helped keep average prices strong.”
In month over month comparisons of residences sold, there was no change from May to June of this year, however there was a distinct decline of 11.1% from June of 2015. A total of 1,117 single family homes sold in June, where May saw a comparable 1,119 sales. This category of residence fell 10.1% from the same time last year. Condominiums saw a positive incline in month over month figures, rising 11.5% to see a total of 465 units sold, yet this still shows a drop of 18.7% from 2015 sales. Conversely, the category of duplex/rowhouse showed a noticeable improvement in sales since June of 2015, but a sharp month over month decline. While the 173 residences sold show a 9.8% increase from the same time last year, this represents a 14.8% drop from month previous.
As mentioned by Sedgwick, in terms of sale prices, there has been little change in year over year figures despite the change in quantities sold. An average increase of 0.1% can be determined when comparing 2015 sales figures, for a monthly average residential sale price of $435, 366. Single family home prices dropped 1.1% from May on average, and 1.8% from this time last year. Average condominium prices saw an slight rise of 3.5% putting the average price at $236, 326. This is a 3.5% increase from June 2015. The EREB explained away this anomaly in their reports, stating that, “the average condo price was bolstered by the sale of several luxury properties”, therefore this likely doesn’t represent a trend of incline. Duplex/rowhouse units averaged $352, 778 which is a year over year increase of 4.6%, and a month over month increase of just 0.7%.
In terms of inventory in the Edmonton CMA, Sedgwick had this to report,
“Inventory remains high and buyers continue to have good selection…This is welcome particularly to those looking in the popular $350,000 to $450,000 single family price range.”
The June market saw 3,041 new listings, a 6% decline from May, and a 4.7% decline from the year previous. There were 8179 residences on market when June came to a close, which represents a significant increase of 7177 residences in 2015.
Days on market have remained relatively steady, which a monthly average of 53 days. This is a change of only 1 day less than May, and 4 days more than June of last year. Single family homes took an average of 50 days to sell, condominiums an average of 58 days, and duplex/rowhouses an average of 53 days.
