Edmonton home prices have tumbled, but so have mortgage delinquencies

Average home prices in the Edmonton area dropped 3.6 per cent last month compared to July 2017, led by a 6.2-per-cent decline in the value of condominiums, new statistics show.

The cost of the average home in the area was $370,046 in July, with single-family houses worth $436,825 and condos selling for $246,115, according to figures released Friday by the Realtors Association of Edmonton.

The weaker year-over-year prices are seen as one result of lower sales, which were off about three per cent for all types of housing over this period. The housing inventory rose 12.6 per cent during this time to 10,094 units.

“The overall real-estate market is softening as the summer selling season begins to slow,” association chairman Darcy Torhjelm said in a news release.

“Average prices are decreasing and that may continue in the rest of the year due to the high inventory levels. It is important for sellers to be prepared to negotiate more and expect to be a bit more flexible with their property prices.”

Meanwhile, a separate report by the Canada Mortgage and Housing Corp. indicates the improving economy has stopped a three-year increase in delinquent Edmonton mortgages.

The percentage of mortgages in delinquency — ones that are written off or have scheduled payments more than 90 days late — rose to 0.54 at the end of 2017 from 0.32 in the last quarter of 2014, but eased slightly to 0.53 in the first three months of 2018.

“The recession in Alberta and Saskatchewan caused delinquencies to rise. More recently, economic recovery and employment gains appear to be stabilizing delinquencies in Calgary, Edmonton and Saskatoon,” the report states.

While the highest delinquency rate in Calgary was for mortgages worth less than $100,000 (0.39 per cent), the highest rate in Edmonton was for loans worth more than $400,000 (0.61 per cent).