Edmonton is the capital city of Alberta, Canada, and the fifth-largest city in the country by population. It is also home to a vibrant and diverse real estate market, with a range of property types, prices, and neighbourhoods to suit different needs and preferences.
In this blog post, we will take a look at the current market trends and forecasts for Edmonton, based on the latest data and analysis from the Canadian Real Estate Association (CREA) and the Realtors Association of Edmonton (RAE).
According to the RAE, Edmonton’s residential sales in June 2023 were up 7.8% year-over-year, reaching 2,147 units. This was slightly lower than the previous month’s sales of 2,178 units, but still above the 10-year average for June.
The average residential selling price in June was $393,548, up 5.6% from June 2022 and 0.4% from May 2023. The average price for single-family homes was $458,674, up 6.1% year-over-year and 0.7% month-over-month. The average price for condominiums was $238,017, up 3.9% year-over-year and down 0.8% month-over-month.
The inventory of residential properties in June was 7,104 units, down 16.4% from June 2022 and up 1.9% from May 2023. The inventory-to-sales ratio was 3.3, indicating a balanced market.
The average days on market for residential properties in June was 48 days, down from 51 days in June 2022 and up from 46 days in May 2023.
According to the CREA, national home sales are expected to decline by 6.8% in 2023, following a strong rebound in the first half of the year. The national average home price is forecast to edge down by 0.2% to $702,409 in 2023.
For Alberta, CREA projects a 7.6% decrease in home sales and a 1.9% increase in the average home price in 2023.
For Edmonton specifically, CREA does not provide a separate forecast, but based on the historical trends and the current market conditions, we can expect a similar or slightly better performance than the provincial average.
The main factors that will influence the Edmonton real estate market in the second half of 2023 and beyond are:
- The recent interest rate hikes by the Bank of Canada and the uncertainty about future monetary policy.
- The supply and demand balance in the local market, which is currently favourable for sellers but may shift towards buyers as more listings come on the market.
- The economic recovery and growth prospects for Edmonton and Alberta, which are dependent on the oil and gas sector as well as other industries.
- The consumer confidence and sentiment towards homeownership, which may be affected by affordability issues and other external events.
Edmonton’s real estate market has shown resilience and strength in the first half of 2023, despite the challenges posed by the pandemic and its aftermath. However, the market is likely to face some headwinds in the coming months as interest rates rise and buyers become more cautious.
If you are looking to buy or sell a property in Edmonton, you need to stay informed and prepared for the changing market conditions. A professional REALTOR® can help you navigate the market with confidence and expertise.
Contact me today for a free consultation and market analysis. I would love to help you achieve your real estate goals!