The gradual drop in oil prices has led to uncertainty in Edmonton’s housing market. Listing inventory is up, as newly built homes and condominiums compete with resale properties in a buyer’s market. Average days on market increased from 43 in October 2014 to 57 in October 2015, and there was a 5.8 month supply of inventory on the market as of Oct. 31. Despite higher inventory, the average residential sale price is up slightly year-over-year, from $367,038 in 2014 to approximately $373,450. While the market has seen a shift over the past year, an ongoing $5 billion development project in downtown Edmonton has stimulated the local economy and helped to keep employment levels up. Potential buyers have been cautious this year as they wait to see how the economy will shift over the next several months.
The first-time buyer market in Edmonton has shifted over the past few years. There are fewer single potential buyers moving to the city for high-paying jobs and purchasing on their own. Now, first-time buyers tend to be young couples or families. These first-time buyers typically enter the market by purchasing a home in the $350,000 range, which could be a half-duplex in an established neighbourhood closer to downtown, or a newer house in the suburbs.
Condominiums have been more affected by the downturn in the housing market than detached homes. There is a good supply of condo inventory on the market, due to significant development over the past several years. In 2014, 67 per cent of condo listings were sold, whereas from January to October
of this year, only 49% were sold. While sales of condo units are down year-over-year, the average
price remains stable. The average 2015 sale price for a condo at the end of October was $252,956, on par with the 2014 average of $252,159.
Edmonton’s luxury market has been slower this year. There is good selection for potential buyers as there are higher inventory levels than in other segments of the market. This is due to new construction that has recently come up for sale.