February 2019 Edmonton Area Real Estate Activity Increases But Lags Behind 2018

What a wacky weather month February turned out to be! We set cold records but weren’t alone in the experience. It was weird everywhere including the center of the Canadian universe, Toronto, where they set snow records.

What we also had in common with other Canadians was a decline in sales in comparison to 2018. The usual suspect is the mortgage stress test affecting affordability, but in Alberta, it’s also our slow recovery.

The latest report from the Conference Board of Canada forecasts economic growth to slow in Alberta to 1.3% primarily due to cuts in oil production and investment in the energy sector. However, the Board forecasts employment to rise by 1.1% so the news isn’t all negative.

Our local housing inventory is up over 4% from 2018 but we’ve noted a decline in the number of new listings. This indicates to me that Seller’s jump into a crowded market unless they have a good reason to do so. In fact, although we might be at record levels of vacant new home builds, some popular neighbourhoods in the Edmonton area have a shortage of quality homes for sale. Go figure!

As we move into spring, we should see the activity increase as it did this February compared to January. I’m also a bit optimistic and thinking there’s some pent-up buying demand by those who are able to buy.

In the meantime, let the sun shine, the snow melt and spring begin!

Categorised in: Real Estate Market Updates

This post was written by Cat and Chris