While temperatures have been a bit slow to warm up this spring, the Edmonton housing market is heating up very quickly.
Houses are selling fast – often within three weeks or less. Increased demand and stubbornly low inventory is driving prices higher too. Experts predict the average price of Edmonton homes could grow 6.5 per cent by the end of 2024 to approximately $458,300. This would surpass the previous all-time high of $435,000 in April 2022.
For both buyers and sellers, navigating this competitive landscape requires strategic planning and a keen understanding of the current trends.
The Current Edmonton Housing Market
As of mid-2024, Edmonton's real estate market is experiencing positive growth. Several factors are driving this trend:
- Strong economy: Following the economic downturn during the pandemic years, Edmonton has rebounded strongly. Increased employment opportunities and a robust local economy have fueled demand for housing.
- In-migration: Edmonton continues to attract new residents from other parts of Canada and abroad. The city's quality of life, affordable cost of living (relative to other major Canadian cities), and strong job market make it an appealing destination.
- Low inventory: It would seem that sellers, particularly those potentially in a position to move up from their starter home, are remaining sidelined by higher mortgage rates. This has resulted in low inventory especially for single-family homes in the under $400,000 price range. Affordable listings sell very quickly and the supply falls well below the demand in this segment of the market.
As a result, the market has become increasingly competitive. According to recent data, the average price of a single-family home in Edmonton has increased by 6% year-over-year. Condominiums and townhouses have also seen significant price increases, reflecting the overall upward trend in the market.
Houses Selling Quickly and Multiple Offers
One of the most notable aspects of the current market is the speed at which homes are selling. Many properties are receiving offers within days of being listed, and in some cases, there are multiple offers, driving prices even higher. This environment creates a sense of urgency for buyers and a lucrative opportunity for sellers.
For example, a typical family home in neighborhoods like Windermere or Glenora can receive several offers within the first week of listing. Buyers are often willing to pay above the asking price to secure their desired property, contributing to the rapid price escalation.
Tips for Buyers in a Hot Market
- Get Pre-Approved: Secure mortgage pre-approval before you start house hunting. This not only helps you understand your budget but also shows sellers that you are a serious buyer.
- Act Quickly: In a fast-paced market, hesitation can mean losing out on a property. Be prepared to make swift decisions and submit offers promptly.
- Work with a Local Agent: An experienced local real estate agent can provide valuable insights into the market and help you navigate the competitive landscape. They can alert you to new listings quickly and help you craft strong offers.
- Be Flexible: In a seller's market, it may be challenging to get all your desired features within your budget. Be open to compromising on certain aspects to increase your chances of finding a suitable home.
Tips for Sellers in a Hot Market
- Set the Right Price: While it's tempting to set a high price in a booming market, overpricing can deter potential buyers. Work with your agent to set a competitive price that reflects the market value.
- Prepare Your Home: First impressions matter. Ensure your home is in excellent condition and consider staging it to attract more buyers. Small improvements can significantly boost your home's appeal.
- Review Offers Carefully: With multiple offers, it's not just about the highest bid. Consider the terms and conditions of each offer, such as financing contingencies and closing timelines, to select the best overall deal.
- Be Ready to Move: Homes are selling quickly, so have a plan in place for your next move. Whether it's securing a rental or purchasing another property, being prepared will ease the transition.
SOUTHWEST EDMONTON HOMES FOR SALE
The Edmonton housing market in 2024 is poised for continued growth. Factor in potential mortgage rate decreases later this year and the Edmonton market could easily exceed all expectations.
Both buyers and sellers need to be strategic and proactive. Buyers should act quickly and be prepared to make strong offers, while sellers can capitalize on the high demand by pricing their homes correctly and presenting them well.
Navigating this hot market successfully requires diligence, flexibility, and the guidance of experienced real estate professionals.
Need help buying or selling a home? Wally has 20 years of experience as a top Edmonton real estate agent. Call/text Wally at 780.238.7384 to get started.