Year-over-year sales surged in November
Stronger economy means housing starts forecast to top the 12,000 mark in 2018
Homebuyers racing against the clock contributed to higher average sales figures in the Edmonton area during November. Transactions were up 12.42 per cent yearover-year during November, according to data from the Realtors Association of Edmonton.
Single-family home sales were up 9.86 per cent, condominium unit sales surged 18.32 per cent higher, and duplex/rowhouse unit sales increased 4.27 per cent when compared to November 2016.
“Although the year-over-year growth in sales volume is encouraging, the surge is likely related to consumers trying to complete purchases before new restrictive borrowing rules come into force in the new year,” said James Mabey, chair of the Realtors Association of Edmonton.
Month-over-month unit sales declined across all categories, as the arrival of snow and winter temperatures signalled a slowdown in the local real estate market. Single-family home sales decreased 17.93 per cent from October, condominiums declined 0.92 per cent, and duplex/rowhouses were down 14.69 per cent.
The average sale price for single-family homes increased both month-over-month and yearover-year. The $441,526 figure was up 2.29 per cent compared to October 2016 and 0.23 per cent over November 2016. The duplex/rowhouse average price also increased to $358,807, up 5.3 per cent from October and 1.39 per cent compared to November 2016.
The average condominium sale price decreased to $232,221, down 4.39 per cent month-over-month and down 4.27 per cent year-overyear.
The surge is likely related to consumers trying to complete purchases before new restrictive borrowing rules come into force.
“There are fewer listings coming onto the market now as we end 2017,” said Mabey. “Looking forward to 2018, we will see higher inventory levels than in previous years, coupled with new mortgage rules that may slow the market, at least temporarily, as consumers adjust their expectations in response to the new lending rules. If this is the case, we may experience some market tightening in the new year.”
As is typical for the winter real estate market, days on market also increased across most categories. Single-family average days on market was up to 59 and condominiums were averaging 75 days on market, while duplex/rowhouses took an average of 59 days to sell in November.
The average number of days on market for all residential properties was 66, up 8.2 per cent over October and up 6.45 per cent from November 2016. Inventory decreased to 7,030, which is down 8.37 per cent compared to October 2017, but up 3.60 per cent over November 2016. Listings in November 2017 increased 5.27 per cent compared to November 2016, and decreased 19.69 per cent relative to October 2017.
RECOVERING ECONOMY BOOSTS HOUSING STARTS
According to data from the Canada Mortgage and Housing Corp. (CMHC), there were a total of 222,651 housing starts across Canada during the third quarter of 2017, up eight per cent from the second quarter. Economic growth and higherthan-expected employment figures contributed to the increase in housing starts, but activity in existing home markets remains slow overall, with sales generally flat and inventories modestly rising.
After seeing 10,036 total housing starts in 2016, Edmonton is on pace for approximately 11,750 in 2017.
Overall, Edmonton housing starts were up about 25 per cent year-over-year during the first three quarters of 2017, as a turnaround in energy markets helped the Alberta economy and lured new homebuyers.
Housing starts in Edmonton are forecast to top the 12,000 mark in 2018, thanks to continued economic improvement. The Altus Group Housing Report forecasts that Calgary and Edmonton are the only major Canadian markets expected to see the trend of increased housing starts continue into 2018.