With 2,847 residential units sold last month, Edmonton’s real estate market had an 11.4 per cent slowdown from May.
In its monthly report released Thursday, the Realtors Association of Edmonton (RAE) reported a cooling of the Edmonton real estate market from May.
While the market showed a more than 11 per cent slowdown, RAE said in its report that it’s still not all bad news because even with the decrease, it’s still 10 per cent higher than June 2023.
The number of new listings also declined, according to the report. At 3,712 in June, new residential listings are down 12.2 per cent from the month before, but year-to-date listings are up 2.3 per cent.
In tandem with sales, the prices of Edmonton single detached homes fell slightly in June. In May, the average price of a detached Edmonton home was $539,000, but the average decreased by one per cent to $495,000 in June.
As the prices for homes came down slightly, apartments and condos increased.
“Apartment condominium average prices hit $211,583, increasing 2.3 per cent over last month and coming in 8.5 per cent higher than the previous year,” the report said.
The report also indicated that rents are on the rise, too. RAE said in May the average price in Edmonton for a one-bedroom rental was $1,357, which rose nine per cent to $1,480. Two-bedroom rents increased by 14 per cent — from an average of $1,480 in May to $1,688 in June.
It wouldn’t be uncommon for the market to slow down in the summer months. As the summer sets in, the market often cools off. A June 2023 RAE report said the market activity was down 2.1 per cent compared to 2022, and 4.6 per cent from May 2023.
Wendy Theberge, a RE/MAX Elite realtor, said she’s noticed a different trend on the front lines of Edmonton’s market that RAE’s numbers indicate.
“Typically, I would have planned a holiday in August, three weeks, and I am not going anywhere because things are just rocking and rolling yet again,” Theberge said.
The “fits and starts” were fairly common for this time of year, but Theberge said there is no “typical” ever since the COVID-19 pandemic.
Over the past two weeks, Theberge said she’s noticed a ramp-up in the market, though it’s not to the extent that it was a month ago when she said it was common to have multiple offers. She even had one property sell for more than $20,000 over the listing price.
“It looks like we are still in a very intense seller’s market.”
Theberge’s research indicated Edmonton had 1.8 months of inventory for single-family homes.
She explained what the inventory meant: “If we don’t get any more listings tomorrow, it’ll take 1.8 months to clear out the inventory in Edmonton.”
Theberge said a balanced market usually has four to six months of inventory, putting Edmonton in a squeeze.
“At the end of the day, what’s happening right now is I am very busy.”
Thankfully, the market will get more listings, but the decreased stock could push prices higher as the tighter supply competes with higher demand.
TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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