Edmonton’s real estate market led by strong demand for bigger homes in south

Article content

Edmonton’s resale real estate market had the highest sales figures by a large margin for February over the last four years with neighbourhoods in the south leading the charge, the most recent monthly data shows.

In particular, buyers are seeking more size offered by relatively newer homes in the city’s southeast and Anthony Henday areas, says Tom Shearer, chair of the Realtors Association of Edmonton. The Anthony Henday area includes communities largely south of the ring road as well as some to the west, encompassing communities including Blackmud Creek, Windermere, Callaghan and Summerside.

“To me, it’s just simple math: the lower interest rates, higher buying power and less concern about the commute,” he says. “There is a flight to value, and this is what is showing in those newer areas.”

Edmonton’s resale market saw 1,091 transactions (excluding outlying municipalities) last month, up more than 44 per cent over the same period in 2020, led by demand for single-family homes, RAE figures for February reveal. This housing type accounted for more than 65 per cent of sales overall, growing by more than 50 per cent last month, year over year.

The north central area also saw strong sales with 143 sales in February. Those three areas out of the eight in the city made up more than 63 per cent of all single-family home sales.

“Just like you saw a whole bunch of new development in the southeast part of the city, it’s the same there (north central),” Shearer says, adding the area also features newer housing stock along with affordable, older single-family homes.

Edmonton realtor Azra Bagga with Royal LePage Noralta, who specializes in the Anthony Henday and southeast areas, says newer homes are seeing the greatest demand.

“We did a property on Friday in the southeast in the Silver Berry area, and it had six offers within two days, and sold for over list price,” she says, about the home in the community completed in 2011.

“Every property we’re showing is pending” with offers accepted by the seller.

Shearer says newer neighbourhoods — which typically have homes with larger floor plans — are increasingly in favour as a result of the pandemic. As a result, buyers are moving from apartment condominiums in central areas that typically do not have the new features buyers are demanding, such as a designated office.

“When we talk about the flight to value, you’re not getting that in areas that are centrally located, and often more mature neighbourhoods.” That even includes southeast communities like Bonnie Doon and Idylwylde. Homes there are often several decades old and may require significant renovations to update floor plans, which can add extra cost for buyers, who typically are budget-conscious, Shearer says.

It’s not just newer communities. Among the hottest spots in the city is Mill Woods.

“You have that perfect combination of entry-level pricing, square footage and lack of supply,” Shearer says. “A house goes up, and it sells right away.”

Yet demand for new or single-family homes built in the last few years is the dominant sales theme, brought on by the pandemic while, on the whole, more established communities are seeing lower demand, Shearer says.

“The more mature neighbourhoods offer convenience and, right now, convenience isn’t a high priority because people don’t need to be close to the office.”