Nathan Mol, a local REALTOR of Coldwell Banker Johnston Real Estate, provided us with his key insights of our current real estate market, specifically the last thirty days.
“On the surface the Edmonton real estate market in 2012 has so far seemed to be a balanced market for the most part – fairly similar to 2011. Where I have really felt a difference from last year is in the past month and a half.
Strong demand for single family homes; sales are up substantially from last year and average sales prices are up moderately.
Most of the increased demand for condos is from Baby-boomers looking for higher end condos, which is driving up the average sales price – quality for these buyers is key though.
Good deals for first time buyers can be found in the university area and other mature and improving neighbourhoods like Dovercourt and North Glenora.
Here is the in-depth analysis:
In the past 30 days (May 20th – June 19th) the number of MLS® sales in the Greater Edmonton Area, reported in May, were up 14% from the same 30 day period in 2011. Of this increase in sales, most of the increase in demand has been for single family homes which increased 17.5% from 966 sales in 2011 to 1136 sales in 2012. Condo sales increased 7.5% from 453 sales in 2011 to 487 sales in 2012. The stats seem to support the preference for single family homes over condos that I have heard from younger first time buyers.
The really interesting data I found in my research was the differences in average sales prices for single family homes vs condos for this same time in 2011 compared to 2012. While the average sales price of SF homes increased from May 20th – June 19th 2011 by a modest 3.2% in 2012, the average sales price for condos increased a massive 34%!
”... the average sales price for condos increased a massive 34%!”
I had to triple check to make sure this was accurate but when I looked at the actual sales that occurred I found the answer. This time last year there was an unusually high number of low-end condos in foreclosure, which led to a lot of low-priced sales. In the period between May 20th – June 19th 2011 there were 70 condos that sold for less than $150k and 22 of those sold for less than $100k. Comparing that to the same time this year, there have been only 48 condos have sold for less than $150k and just 17 of those have sold for less than $100k.
The other trend in condos came of less of a surprise since I have seen it unfolding for the past year now, which is the increase in high-end condo sales. The trend I have been seeing is that there is a desire from those baby boomers who own large upscale 2 storey homes to downsize into luxury condos since their kids are now graduating university and moving into homes of their own and they no longer need 2000–3000 sq ft homes. The sales data would seem to support this, since in this timeframe of 2011 there were 6 condos that sold for over $500k, whereas this year there have been 18 condos that sold over $500k in the past 30 days (including two that have sold for over 1 million).
“Increase in high-end condo sales… 18 condos that sold for over $500k in the past 30 days”
The most competitive market segment for quality properties is undoubtedly single family homes that are mostly move-in ready, and priced affordably for first-time buyers. I have found that there are still some great deals in centrally-located, quality neighbourhoods that are improving like Dovercourt, North Glenora, and King Edward Park. There is also a lot more selection for condos in the University Area this year compared to most other years.”
It’s clear that understanding your current market and working with the talent of experienced, knowledgeable REALTORS, like Nathan Mol can be beneficial to home or condo buyers.
If you’re looking to connect with a REALTOR or another one of our trusted professional referral partners, contact First Foundation today!