In May, sales prices blew through the roof compared to last year, although sales volume did flatten off. With strong buyer demand during the summer months and lower inventory, we anticipate brisk activity over the next 3 to 6 months.
In May 2021, average sales prices climbed to a record high at $405,047, well above the average price of $395,567 in March. Have we seen the peak for the year? No one knows for sure and certainly in a normal year, we would see sales prices peak in May and June.
Days on Market
Our days on market stat. continues to amaze. Buyers have been snapping up homes ever more quickly since the start of the year. Average days on market in May was only 32 days, compared to 62 days in 2020 and 49 days in 2019.
Last year there were 812 total Edmonton sales registered in May an improvement over the month before and this was driven by the Covid 19 pandemic. Here we are at month end in May 2021 with 1620 units reported sold. In other words, the May market was about 2 times larger than the year before. My personal view is that this volume cannot be sustained and we should see some moderation in June and over the summer months, dropping off further as the year matures, albeit perhaps with a small ‘spike’ during the last quarter.
At month end, total available inventory was 5887 homes for sale, equal to an increase 5%, compared to the end of May 2020, when 5587 units were available for sale. In April, the increase was 4% and driven largely by a massive SURPLUS of condos.
Single family inventory is still lower than last year by 544 units, whilst Condos are 814 units UP.
The Condo Market is awash with inventory and values are down. Single Family is still very strong because inventory is tight and demand is high, particularly in the suburbs. The suburbs certainly offer more house for the money when compared to central locations, where traditionally people would go for convenience. With more people working from home, convenience has lost some of its allure.
Perhaps when COVID is behind us and the boss wants everyone back in the office, those central locations will again become attractive and the suburbs will lose some of their appeal.
Look for my June 2021 report during the first week of July. Thank you.
Want more information about our full service affordable FLAT FEE home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca