We are often asked questions about the state of the Edmonton real estate market. Here's some thoughts we'd like to share in response to a question we received from one of our newsletter subscribers:
Question:
I'm curious to hear your feedback on how the Edmonton real estate market is doing. It seems to have slowed down considerably from September, 2002 and buyers appear to be less inclined to commit. What are your thoughts?
Response:
Thank-you for your question. Its true the Edmonton real estate market has slowed a bit since the summer. Average Edmonton residential sale prices in July 2002 were $153,691 and in October 2002 they dropped to $150,397. Statistically, this is very common. In nearly every year, even going back 40 years, we see a slight drop at this time of year. Towards the end of November, and into December and January, we typically see housing prices rise again.
I dont think the trend has as much to do with buyers commitment as it does simply with buyers not wanting to move during the holiday season. In November and December, we start to see more market activity with possessions starting after the holidays in January and February.
Because there's fewer buyers looking to move right now, there tends to be more inventory of homes available, which means more competition and therefore lower prices.
Of course there are no guarantees, but my feeling is housing prices in Edmonton are going to continue their upward trend for a few more years to come. I recently read an excerpt from Edmonton's Monthly Economic Review which predicts a strong economic growth through 2003. The review also indicated that Edmonton's population is expected to increase by nearly 57,000 people by 2007.
Overall, I think the current market has some great benefits for both buyers and sellers.
Sellers can benefit from the sharp increase in Edmonton housing prices we've seen in the last few years (the average residential price just one year ago was $134,051, now its $150,397).
Buyers can benefit from some very good interest rates (rates are predicted to rise 2-3% in 2003). Unfortunately for buyers, waiting to buy is only likely to get more difficult as Edmonton housing prices continue to rise.