Overall there are definitely some positive signs of improvement in the Edmonton real estate market! The June stats are showing a consistently lowering ‘months supply of inventory’ (MOI), and slow month over month rising average sale prices (up 2.1% YTD to $366,000) in the Edmonton area. Keep reading to stay #intheknowwithjo with some Edmonton Market IQ!
Months of Inventory: 5.2
This is a super important number to pay attention to as it shows us the strength of the market and gives an indication of the level of competition you will face as a buyer or a seller. It is the number of months it will take to find a buyer for every single property currently listed on MLS, IF NO MORE HOMES were listed for sale. A normal & balanced market is around 5-6 months, below 5 months is a seller’s market, above 6 months is a buyer’s market. In January, our MOI was 8.9 months – a strong buyer’s market. We are now at 5.2 months which is pretty balanced for both buyers and sellers. Yay!
DAYS ON MARKET (DOM): 59 days
This is the current average number of days homes are taking to sell. A very important thing to know about this number is that it measures the current listing cycle, not how many times a home has been taken off the market and re-listed. The real average is always a little higher, probably by at least one month depending on the area.
ABSORPTION RATE: 19% (1 in 5)
This is the rate at which homes are selling. 19% means that 1 in every 5 homes listed for sale will sell each month. As a home seller, if you want to be that 1 in 5 – take a close look at the 5 homes in your market that are closest to yours and out price, out clean, out market and outshine them! The ‘best’ homes will sell first.
AVERAGE SALE PRICE: $366,000
This is the average of all residential home sales, and is down 3.7% from June of last year. However, this number has been steadily increasing since January when it was only $339,000. To make this number more meaningful to you – let’s break it down into average prices for 3 categories.
- Single family homes ………….. $423,984 (down from $444,000 in 2018) -4.45%
- Condos ……………………………… $238,648 ( down from $241,023 in 2018) -0.9%
- Duplexes …………………………….$338,838 (down from $344,388 in 2018) – 1.6%
Looking back over the past 5 years, the total NEW TO MARKET listings are at a 5 year low. The END OF MONTH inventory (unsold homes left at the end of the month) is still high, but lower than 2018. The total number of sales is in June is also comparatively still low, but is 10 homes higher than 2018! So, …
- new listings are slowing
- total inventory is still high
- total sales seeing possible improvement?
While these numbers show us the strength of the average Edmonton market overall, what does that really mean for you as a home buyer or seller? To know the true value of your own home – because really that is what matters – we must look closer at your specific area, neighbourhood, and home type. Real estate prices, trends and values are local, and specific. The more central areas of the city always stay more insulated from market fluctuations and recover faster, and the areas further away from the center will be the quickest to feel a downturn, and the slowest to recover. So, stay tuned for tomorrow where I will break these numbers down by neighbourhood!