February Marks a Possible Market Turnaround for Single Family Home Sales
by Stuart Neal
on Tuesday, March 5th, 2019 at 8:06am.
For single family homes, sales values are still down, but sales volume is about the same as last year. Now that excess inventory has essentially disappeared, we can expect prices to rise soon.
In total, 502 single family homes sold in Edmonton during February 2019. This compares well with February 2018 when 543 homes sold. A difference of only 41 units. The confirms how robust the Edmonton market is and that when it comes to residential real estate, the market will to a great extent ‘just keep chugging’.
Month End Inventory
Don’t let this graph fool you. At the end of February the excess inventory that we have faced this past 18 months was DEPLETED. At the end of February 2019 there was 3296 homes available for sale across Edmonton, compared to 3280 at the end of February 2018. This is ONLY 16 units more than last year. If this pattern continues, expect value to stablise or increase. Days on market will come down.
Days on Market:
Home buyers in February this year were taking a little longer to put their new home under contract when compared to last year. This year homes sold in 68 days compared to 59 days last year. This is a difference of only 9 days and could easily be attributed to the colder weather we experienced.
In February 2019, single family home buyers continued to press their advantage and secure discounts. Homes in February 2019 sold for about 3% LESS than last year, equal to an average discount of about $14,000.
If you are buying, you should consider doing it now. Inventory levels are now balanced and we expect values to increase over the next 3 to 6 months. Your days of securing a discount are numbered.
If you are selling and then buying in the Edmonton area market you need not worry. You may have to wait a bit longer to sell and perhaps offer a discount in the short term. However, you will also have plenty of choice when buying and should be able to secure a good discount yourself.
All information was extracted from the Edmonton MLS® System. This report is provided for informational purposes only. We do not warrant or guarantee the accuracy of the information in any way. Readers are advised to complete their due diligence and should not necessarily take action based on the information contained herein.