Posted by Stuart Neal on Tuesday, March 5th, 2019 at 8:15am.
The big news story here is that excess inventory is no more. There is now LESS inventory for sale than this time last year and days on market remains stable. Unless lots of new condo units come on stream this year, we expect values will start to recover by the end of the year.
Over the last 2 years we have witnessed a large excess of inventory. That situation we appears to have been remedied. At the end of February 2019 there were only 1938 condo units for sale across Edmonton or 564 LESS units than this time last year. If this pattern continues, then the condo market is on the verge of a turnaround in Edmonton.
217 condos sold in February 2019 compared to 247 units last year, a difference of only 30 units. This proves that buyers continue to see value and need in owning a condominium.
Condo buyers in February 2019 continued to act with confidence and contracted in only 77 days. This compares well to last year when days on market was 73 days. Despite the cold weather condo buyers were ready to purchase.
Unfortunately, for condo sellers, sale values have yet to improve and buyers continued to press their historical advantage. In February, condos traded at about an 8% discount compared to February 2018. This equates to a dollar value of around $19.600 lower than last year.
If you are a seller there is still reason to be confident. Demand remains strong and buyers can be persuaded to compete for the best units in the most sought after buildings. We should also see values stabilise and harden over the next few months.
If you want to buy a condo you should seriously consider acting right now.
If inventory levels continue to stay low, you will shortly lose your negotiating advantage and prices will increase.
You can read more about the author of this blog by clicking this link – Stuart Neal Broker Owner & REALTOR®
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.