Edmonton Real Estate market slows down

Prices continue to correct in Edmonton 

The Edmonton Real Estate market continues to see a downtrend. After the hysteria of the last few years in the Real Estate market, we have seen what many would call a healthy correction in the previous few months. In July 2022, we saw the sale of residential units dropping by 23.8% in Edmonton, compared to June 2022 and down 10.3% from July last year. The number of new residential listings fell 14.8% from the previous month of June. However, the number of new listings is up 6.2% compared to last July. 

In July, the average price of single-family homes was $489 370, a 1% decrease from the previous month but up 5% from the prior year. Meanwhile, condos sold for an average of $229,463, a 4.4% decrease year-over-year and a 3.7% decrease compared to June 2022. Lastly, the price of duplexes dropped by 1.4% month-on-month but was up 4.3% from July 2021. 

Houses are taking longer to sell 

Another telltale sign that the market in Edmonton is slowing down is the average number of days properties are sitting on the market before selling. Single-family homes were on the market for an average of 33 days in July, six days longer than June. Condos were on the market for an average of 52 days, seven days longer than the prior month. Lastly, Duplexes took an average of 34 days to sell, five days longer than the 29 days in June. 

Why are prices dropping? 

The question many people are asking is, “Why are home prices dropping”? There seem to be three primary drivers behind the cooling off in the real estate market. Firstly, and possibly most importantly, are the higher interest rates. The bank of Canada has raised its interest rates, and this makes borrowing money more expensive and, naturally, attracts fewer lenders. Secondly, inflation has been rampant and eating into the purchasing power of Canadian citizens. More Canadians are carefully considering large purchases like a home. Lastly, the time of the year also plays a factor, as the housing market tends to taper off in the summer. 

Where are we headed? 

It’s uncertain exactly where we will go over the next few months, but it is likely that home prices could stabilize somewhat. There is no guarantee that inflation will ease out in the immediate future, and the bank of Canada has already hinted at another interest rate increase which could further dent the housing market. 

Are you selling? 

Selling in this market is not as easy as it was a few months ago, as there is more competition amongst sellers, and those listing their properties need to pay more attention to the market of 

their property. Thankfully, this is where Snaphouss can assist. Snaphouss offers real estate photography and several other services to help your property stand out above the rest. 

Don’t hesitate to reach out to us today!