More condos selling. Prices dropping. Excess inventory disappearing. The condo market is an interesting place right now.
58 more condo units sold across Edmonton when compared to the third quarter of 2018. This confirms that buyers continue to seek out condo living as a lifestyle choice.
Condos continued to trade at a discount when compared to last year. On average condo units sold for about 10% LESS than last year, equal to an average discount of about $25,000. Condos have been selling at a discount for the entire year. This is not good news, but as excess inventory dries up this pattern must eventually change. Its beyond the scope of this report to examine the ages of the condos sold, but if a number of developers decided to wash their brand-new unsold inventory out of the market, this would definitely skew values.
Days on Market:
For the third quarter 2019 there was no change for days on market. On average condos sold in 68 days.
Month End Inventory:
At the end of September 2019 there was 309 FEWER condo units for sale compared to last year. We have now seen this trend occur for 3 quarters. If this pattern continues, there has to be a point where the leverage shifts in favour of condo sellers and prices firm up.
If you are buying a condo the market is still in your favour. Will it last? At the moment you still have plenty of choice and you should be able to secure a nice discount. However, if inventory continues to tighten up, values will harden and you may pay more if you delay.
For condo sellers you may have to look at your motivation. If selling your condo enhances your life options in some way for example you want to move to another place then do it. If on the other hand you are motivated by money, perhaps waiting for the market to firm up would be a better option.
About the author:
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.