Edmonton Real Estate Market Update for June

st_357As reported by the Edmonton Journal, last month Edmonton home sales jumped a healthy 7.6% compared to a year ago, according to the Realtors Association of Edmonton. In total, the June housing market saw 54% of listed homes sell for a total of $584 million (1,768 sales; 3,260 listings).

A couple of key factors behind this boost in sales are, of course, the hot Alberta economy and those good ol’ historically low interest rates – which make home ownership a reality for many people, especially first time home owners and former renters. 

However, another factor that is boosting home sales appears to be a slight dip in average selling prices, which further makes ownership affordable and attractive. The average price for a single family home fell 2.86% in June to $379,409, while condo prices dropped about 5% to $231.582. 

So what do these numbers foretell about the summer and fall? According to ATB Financial economist Dan Sumner, the road ahead should be marked by stability and balance, instead of volatility.

 “A strong Alberta economy and an improving labour market means that prices are unlikely to fall by much,” Sumner stated, “while the fact that valuations are near the upper end of what many homebuyers can afford means prices have limited upside potential, especially with mortgage rates set to rise eventually.”

For home sellers, this means that there’s no need to panic – there’s no “bubble” here that appears on the verge of bursting, and you shouldn’t expect to wake up next month and find that the value of your house has sunk. So it’s no time to panic. However, it does mean that there is going to be more competition, given that more homes are now within the budget of more home owners. So that means preparing, staging, and marketing your home is VERY IMPORTANT if you want to realize full market value, and not get “damaged” by the increased competition.

For home buyers, this means that it’s a very good time to jump into the market and, when you find the right house, make a competitive offer. As Sumner states (and as everyone knows), interest rates will rise – they can’t really go in any other direction! – and even if home prices stay stable, even a 1% spike in interest rates will add tens of thousands of dollars over the life of your mortgage. Why pay that money to your bank or lending institution, when you can keep it in your account – or better yet, spend it on your new house (or maybe that amazing golf vacation you’ve been dreaming about...).

As a Realtor® who specializes in serving the Edmonton marketplace, my job is to make these local statistics work for my clients – whether they’re buying or selling. Give me a call at 780-709-0811 to discuss your unique real estate plan. Remember, I’m here to help! 

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Buying your first home is an exciting but also daunting task. While you are trying to find the perfect home for you and your family, you have to worry about the paperwork, technicalities, and legalities. Working with Chris, that part of the home-buying process was taken care of. When my brother and I bought our first home, Chris took the time to explain the process to us step by step, and I felt the process was really simplified. He explained all the details, provided advice as required, and answered all our questions, sometimes before we even asked. He worked around both our fulltime schedules, and was constantly in contact with us, even if it had to be early morning, later in the evening, weekdays, or weekends. What I appreciate the most about Chris is the fact that he is devoted to his clients. The first time I saw my home, we did not actually go in to see it, because there was an offer on it. Chris followed up on it and a couple of days later he let us know that it was back on the market. We put in a competing offer and unfortunately the sellers went with someone else’s offer. Yet again Chris kept us in the loop about this house, and for whatever reason, the sale did not go through. This time around, the sellers accepted our offer, and everything worked out. If it was not for Chris’ diligence and dedication, we might have missed out on what was meant to be ours. It is a beautiful home and I thank Chris so much for his hard work. He helped us find exactly what suited our family. He was always available and easy to get a hold of. He pointed out both pros and cons of each house we looked at, and I appreciated his honesty. It was not just about making a sale, but helping us find what we needed. I would without doubt recommend him to anyone buying a home, whether it is their first home or not, and I will definitely be coming back to Chris if I need to buy or sell a house in the future.

- Nada Nsier – Medical Laboratory Technologist, BSc (MLS)

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