Million-dollar home sales on the rise
Figures show improving economy, stronger real-estate market in city
More million-dollar Edmonton homes have sold in the first quarter of 2017 than in the same period over the past four years, showing a glimpse — however tiny — that the province’s economy might be starting to feel a little less sluggish.
In the first three months of this year, 33 properties sold for $1 million or more in the city and the surrounding area, easily topping last year’s 20 sales and well above the previous years’ sales of 19 in 2015, 28 in 2014 and 23 in 2013.
The highest selling price of those properties was more than $3 million, the most expensive condo sold for $1.15 million and the most expensive duplex or row house sold for $975,000.
In delivering the Realtors Association of Edmonton’s first-quarter report Tuesday, chairperson James Mabey was cautious not to overstate the importance of the big-ticket sales, but added it is a healthy indicator of a real estate market about to move into its two busiest months.
April and May can see as many as 500 units enter the Edmonton market every week, Mabey said.
“If people are willing to move into that premium marketplace, it gives us an overall picture that Edmonton is attracting people of that ilk ... We have strong indications that it is happening in all price points,” he said.
In March, 1,474 MLS-system listed properties sold in the Edmonton census metro area, an increase of 31.8 per cent over February 2017 and 1.8 per cent up from March 2016.
New listings jumped to 3,080, up 26.7 per cent from February and up 1.4 per cent from March of last year.
The average unit sales price was $371,680, up 3.13 per cent from February.
The average price for a singlefamily home was $439,139, an increase of 3.04 per cent.
Condo prices increased monthover-month by 3.86 per cent, to an average of $242,632.
Data compiled by the association showed while the number of people working was down in February by 3.5 per cent year-over-year (the Edmonton and area jobless rate was a seasonally adjusted 8.3 per cent), there was an ever-soslight uptick in net job creation in February.
If that continues, it will mean only good things for the real estate market, Mabey said.
“The economic indicators in the employment sector are going to really help us out through the back half of the year,” he said.
“Stronger employment means it’s a lot easier for people to start making major purchase decisions like that of a new house.”
Another key indicator in the release of its first-quarter market report was the number of entrylevel homes sold.
In the first three months, homes in the $250,000 to $299,999 price range were the most popular, followed by homes in the $200,000 to $249,999 price range.
“It’s more about affordability that’s driving this market,” he said.
“From our perspective, if we are seeing that entry-level housing market start to move, and we have seen good strengths in those sales numbers of the entry-level product, that will help to cascade up into the market so we’ll see the mid part of the market move up as well.”