Sales are steady but average home prices in Edmonton have dropped 3.71 per cent from June of last year, show the latest numbers from the Realtors Association of Edmonton (RAE).
The average price has dropped to $365,949, the association said Wednesday.
Single family homes sold for an average of $423,894, a 4.45 per cent year-over-year drop from June 2018, and a 1.76 per cent decrease from May 2019.
Condominiums sold for an average of $238,648, a 0.99 per cent drop year-over-year, but an increase of 0.36 per cent from the previous month.
Duplexes also dropped at 1.61 per cent from last year to $338,838, or a 1.24 per cent increase from the previous month.
“Our market is still relatively healthy all things considered,” said RAE chairman Michael Brodrick said Wednesday. “The market is still happening, it’s just not as robust as we have seen in the past.”
Residential sales in the Edmonton metro area for the month of June rose slightly, at 0.56 per cent, compared to June of last year.
But the number of new residential listings dropped a hefty 18.03 per cent from June 2018, and overall inventory in the Edmonton area dropped 11.68 per cent.
Single family home unit sales increased 1.46 per cent, while condo unit sales dropped 4.34 per cent, and unit sales of duplexes were unchanged from the same period of time last year.
Brodrick said the decrease in listings and stagnation in prices are mostly due to changing consumer confidence given fluctuation in the economy stemming from the oil and gas industry.
“Listings have come down simply because they were high,” said Brodrick of May 2018 when they peaked. “It’s really about consumer confidence. And we can’t underestimate the role that plays in people making a decision, particularly when you’re talking about not a $50 pair of shoes but a half-million dollar property that you’re paying for over a period of time.”
The number of days an average single family home is on the market increased from 49 to 53 since last year as well.
While some sellers might have to sell, those who are just considering it might wait it out until the market strengthens again, said Brodrick.
The federal government’s recent changes to tighten mortgage stress test regulations have also served to put downward pressure on home prices, meaning sellers might hold on a little longer.
New funding for first-time home-buyers announced recently by the federal government could help make home ownership more feasible for more people, and Brodrick is curious how it will impact the mid-range market — properties between $300,000 and $500,000 — because that’s where new buyers are most likely to enter the market.
“If we want people to continue to be able to have homes, we need to make sure that policy at every level of government facilitates home ownership in the best way possible for all levels of home buyer.”