Edmonton real estate sales went up, comparing year-over-year, for the first time in 2015. It is suspected that lower oil prices caused an initial caution to enter the real estate market this year, but new reported sales show an increase of confidence among buyers.
The Realtors Association of Edmonton (RAE) recorded a 2.4 per cent increase over all residential sales year-over-year for the month of June. The 2,008 homes sold in June included:
- 1,243 single-family dwellings (2.1 per cent increase from 2014)
- 572 condos (1.6 per cent increase from 2014)
- 156 duplex/rowhouses (11.4 per cent increase from 2014)
In addition, sales overall for June were up 13 per cent from the reported sales of May 2015.
“The reality of what we are seeing in the market is that the slight hesitation from buyers that came with the drop in oil prices is lessening. Edmonton has not been hit nearly as bad as what many predicted and buyers are becoming more confident that our market won’t plummet. This renewed confidence coupled with low mortgage rates and a healthy selection means that people are realizing that this is still a good time to buy,” said Geneva Tetreault, president of the REA.
Because of lower sales and higher inventory, real estate prices took a small dip month-over-month this year. Regardless of the decrease, prices are still higher than this time last year.
Single-family homes were up two per cent from last year, averaging $444,862. Condo prices remain static at $255,662 and duplex/rowhouses continue to be popular among buyers, with a price growth of two per cent year-over-year. Prices have dropped slightly from May.
“With sales ramping up again and inventory starting to settle, we likely won’t see our prices drop much more than this,” said Tetreault.
Read more in the Latest Market Report.