With the Bank of Canada’s largest benchmark interest rate hike in more than 20 years (a full percentage point to 2.5%), we’ve been getting a lot of questions about 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 the 2022 real estate market was all about bidding wars, selling over list price, and a seller’s market, the second half of the year will see things return to a more manageable, normal pace. The key message we want people to hear is 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
Undoubtedly, rising interest rates and inflation have cooled what was a fiery hot market since the start of the year.
“We continue to see a gradual decrease across the board in the Edmonton real estate market,” says REALTORS® Association of Edmonton Chair Paul Gravelle. While the frenzied pace of the last 6-8 months is largely behind us, the overall market forecast is still quite positive.
Get answers to your real estate questions today. Call/text Wally at 780.238.7384
Sales slowed in June but prices holding steady
Single-family home sales were down 8.2% from June 2021, and down 11.6% from the previous month. Condo unit sales increased 1.8% from June 2021 but were down 4.3% from May 2022. Duplex/rowhouse unit sales were down both 4.7% year-over-year and 11.6% from last month.
The average price of single-family homes was $494,302, which represents 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 then? While it is possible we will see a slight correction coming out of the super-hot sales season, experts predict Edmonton house prices will continue to climb.
Canadians leaving the country’s most expensive cities are flocking to Alberta, attracted by the strong job market and the value they can still get in the Calgary or Edmonton housing market. Add to that the hundreds of thousands of new Canadians expected over the coming years, and demand for homes is not going to be slowing any time soon.
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Tips for selling in today’s market
- Don’t panic
- Expect your home to be on market for longer
- List at a competitive price; show potential buyers some enticing value
- Adjust expectations and brace for a slower sale
Tips for buying in today’s market
- Don’t panic
- Recognize that the cost of borrowing has essentially doubled since the start of the year
- Adjust expectations and brace for possibly higher interest rates when your term is up
- Have faith that there is incredible value in the market and that buying a home in Edmonton is still an excellent investment
For advice on buying or selling a home in Edmonton, Wally has nearly 20 years of experience and has helped hundreds of buyer and sellers achieve their real estate goals.
Call/text Wally at 780.238.7384 for a consultation today.