The December market continued to slow in line with seasonal expectations.
In December 2023, average sales prices were slightly down compared to last year. The average sales price for December was around $4450,000 compared to around $455,000 in December last year.
However, the annual price increase for single family homes was 4% i.e. $469,000 for 2022 compared to only $455,000 in 2021.
After the amazing and unexpected start to the year, sales volume fell off. Sales volume ended the year with 595 fewer units being sold in 2022, when compared to 2021, a drop of about 5%.
12,256 single family homes sold in the Edmonton area by the end of 2022. Although down on 2021, its still around 3000 units or 33% up on 2020.
Days on Market
Average days on market for 2022 was only 39 days compared to 40 days in 2021 and 56 days in 2020.
This proves the prevailing confidence that buyers show toward single family housing.
Based on simple math, supply is more than 6 months which would normally suggest a buyers’ market. However, many listings expired at the end of December and until those home sellers re list for the spring market, supply will drop off significantly for the first 3 months of 2023 I expect.
In general, anything less than four months of supply is considered a sellers’ market. Four to six months is balanced and anything above six months of supply is considered a buyers’ market.
For now, we are in a buyer’s market. This could quickly change as we move beyond Christmas and into the traditional late winter and early spring market.
For the first quarter of 2023, home sellers will need to price in line with current values. However, I expect values to gradually lift, as we move into the spring market.
Look for my January 2023 report during the first week of February. Thank you.
About the author:
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