The pace of the market is changing, and many people are starting to wonder if the Edmonton and area market is favouring buyers or sellers at this time i.e., June 2022.
The best metric for gauging this question is supply.
In general, if the number of homes or condos for sale would run out in less than 4 months, that is considered a seller’s market.
When the supply is between 4 and 6 months that is a balanced market and when inventory exceeds 6 months that is considered a buyer’s market.
How do we calculate supply? We take the inventory number at the start of the month and divide the number of homes sold in that month into it. The resulting number is the months of supply.
So, for example in Edmonton at the beginning of May there was 1893 single family homes for sale and 1303 sold in that month. Therefore, the months of supply is 1.5 months.
This is a seller’s market.
At the start of May there was 1998 condos for sale and 570 sold in that month. Therefore the months of supply is 3.5 months.
This a still a seller’s market but edging toward a balanced market.
So, what does this mean to you?
In most cases a sellers’ market means values will be driven up. In a balanced market values stay even and in a buyers’ market we would expect values to drop.
About the author:
You can read more about the author of this blog by clicking this link - Stuart Neal, Broker, REALTOR® & Team Lead.
Our FIXED FEE home selling program gives clients proven results & affordability. To learn more call our Broker Owner & Team Lead Stuart Neal at: 780-760-2014 or visit our program page www.FixedFeeRealty.ca
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