October 2018 Monthly Real Estate Report
November 7, 2018 5:47 pmIs the sky is falling……or is that just snow? All across Canada the media is reporting a dramatic decline in sales and prices. What’s going on?
No doubt, the new mortgage rules reduced Buyers affordability. This is reflected in the increase of home sales in the lower price ranges. In the meantime, many Sellers have tried to hold firm with the hope they will realize a higher price. Combined there has been an increase in housing inventory over the year and a decline in the number of sales in all categories.
So what does this mean for buyers and sellers in the Edmonton area?
Sales typically slow as we move into the winter. The inventory on resale homes declined by about 3% in October but the new home inventory is still in the over built range. With good choice, Buyers will continue to cherry pick homes with good value. I expect Sellers will either decide not to list going into the winter or will adjust their prices to sell in this competitive market. That together with the reported decrease in the number of single and multi-family home starts this quarter will slowly eat away at the surplus inventory.
So is the sky falling? No, but in the short term these market forces will have to play out. It’s important to note that 1,155 homes sold in the Edmonton area last month. That’s just about half of all the new listings for the month which in Realtor terms is a “balanced” absorption rate. The good news for sellers is that although the Condominium average prices declined, sales increased by 8.8%. Buyers will buy if it’s priced right and it looks good. That’s a bit rough for Seller’s but in the long run will result in a more affordable balanced market.
For a comprehensive breakdown of the October sales statistics refer to this REALTORS® Association of Edmonton link:
As always, I appreciate your referrals and if I may be of any service, please let me know.
Chris
Categorised in: Real Estate Market Updates
This post was written by Cat and Chris