December 2024 Edmonton Area Real Estate Market Update

The countdown to Christmas and the holiday season is on for many people. Now, after a surprising turnaround in October, how has the market responded as we dive into winter and the snow across the city? November started to trend back into its winter hibernation for the next couple of months as we saw a slowdown across the market. Homes are taking longer to sell, and the ones to eventually sell end up going for prices lower than homeowners were initially hoping for. For this time of year, this isn’t a surprise in our market. The average home is taking just over 40 days to sell, which is up about 40% from the peak of the market earlier this year. Home prices dipped about 1% from October, and new listings and sales were down by 23% and 26%, respectively. However, looking back across the last 12 months, we do show what a strong market we have seen with home prices up nearly 14%, with the high riser going to apartment condos at just over a 19% increase from November 2023, which I never would have expected if you had asked me last year. Amid all of the typical seasonal slowdowns this time of year, the amount of inventory and homes for sale remains quite low, with just over 2 months of supply available at any given time, which has kept things feeling like a seller’s market even though the overall demand has slowed across the market. I expect things to keep steady over the next 4-6 weeks into January before starting to get a pulse on the 2025 market, which I am told by people much more qualified in macroeconomics that Edmonton should be tied for 1st place across Canada in home price appreciation, which is only a result of the continued demand on this city. If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact

November 2024 Edmonton Area Real Estate Market Update

What a roller coaster this fall has been in the real estate market. Just as things started to slow down for the fall/winter season, we were delivered a massive rate cut as the government grapples with the economy. So, did it actually make a difference? Up until October, the recent downward shifts in the interest rate environment have had minimal effect on us in Edmonton. We had a busy spring, followed by an elevated summer and then some return to a slower period in August & September. However, it isn't every year that we see sizeable upticks in the market come October like we saw this year, with 10.5% more homes selling in October compared to September, which is up a whopping 38.5% from October 2023!  This uptick, in combination with 6% fewer homes coming to market, the amount of active homes available falling by over 10%, resulted in an interesting situation with prices remaining flat in October. Detached and semi-detached homes remained unchanged. Apartment condos fell by 4.7%, however, townhomes took another rise up with a 7.6% increase in median prices in just one month, putting its year-over-year record to 23.3% from October 2023.  October still isn't anywhere near the height of the market March-May of this year, but there was most certainly a noticeable uptick in sales right after the rate drops were announced. Where could this trend go from here? October may have been a blip in the market; however, if this continues into November without a substantial decrease in activity, we may see an elevated winter market before seeing spring pick up again, which will likely put us in a position for a busy spring come 2025, especially if the rumoured interest rates continue to fall.  If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact  

October 2024 Edmonton Area Real Estate Market Update

Folks, it’s fall season again, and another busy month is in the books. For some reason, September flew by and felt very much like an April market. Let’s take a look at how the month played out. Edmonton has started to return to a more predictable market where the annual ebbs and flows follow seasonal trends, and September seems to be no exception. Even though I saw a major uptick after the Labor Day long weekend, September gradually moved towards a fall slump. There wasn’t a significant increase in new listings or sales, both of which are down, with sales experiencing an almost 13% pullback from an already slowing August. While 2024 is still ahead compared to last year, the earlier chaos from this year is beginning to settle down.  With fewer homes selling, properties are also taking a bit longer to move off the market. The average time to sell is now 38 days, with the quickest being semi-detached homes, which sell in as little as 30 days. In all cases, homes are selling much faster than they were last year, but on average, it’s taking 8 days longer (a 26% increase) compared to June. Available inventory remains relatively steady, though there are fewer options than last month. However, with fewer sales, the market is trending more toward a balanced market than earlier in the year.  Home prices also began to stabilize last month, except for detached homes, which saw another monthly gain of 2%. Home prices are up between 7.5% and 16.3%, depending on the category. Earlier in the year, row/townhomes were leading with the highest growth, but that momentum has slowed, with row/townhomes now showing only a 7.5% increase over the last 12 months. In contrast, apartment condominiums have seen impressive growth, up 12.8%, placing them second only to semi-detached homes.  This flattening of the Edmonton market comes amid three consecutive rate decreases, with rumors of more to come later this year and into 2025, indicating that the bank rate has yet to significantly impact the Edmonton market. That could change in the New Year, but for now, we’ll have to wait and see how the fall and winter markets play out, as they are expected to follow seasonal patterns with a potential slowdown in the coming months. The next interest rate announcement is set for October 25.  If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact  

September 2024 Edmonton Area Real Estate Market Update

Many will say, “If it isn’t broken, don’t fix it.” However, it seems the Canadian economy is the opposite, as the Bank of Canada has adjusted the interest rate yet again by lowering it by 0.25% this week, marking the third consecutive rate decrease. There are many people far more informed than I am on the broader Canadian economy, but from what I’ve been told, the remainder of the year may continue in the same direction. So, how does this affect our local market in Edmonton? August is always an odd time in real estate. It’s the end of summer, people are squeezing in last-minute vacations before school starts back up, and, almost regardless of which way rates go, August tends to slow down compared to the months before or after. So, it’s not unusual to see slightly less activity during this time. This is exactly what we saw last month. The number of listings coming to market, as well as the number of homes sold, both slowed down compared to July’s activity. However, in both cases, there’s still more happening this year than last year. Home prices remained steady, with single-family homes and apartment condos seeing a slight pullback in August, while row townhomes and semi-detached homes experienced moderate gains. Overall, 2024 remains more active than last year, with prices up across the board—showing a median increase of around 11.1%. The average time to sell a home is still down almost 24% from last year, with current listings taking just over a month to sell. While this isn’t as fast as the peak of spring, it’s still highly competitive compared to previous years, even during the best of times. How does August usually predict the remainder of the year? I’ve been telling clients for a few weeks now that despite the slowdown in August, we’re almost certain to see the market pick up again in September and continue to be active through to Thanksgiving. As of writing this on September 6th, I can confirm that in the last 10-14 days, I have already seen an uptick in market activity. If you want to know how to take advantage of selling in this market, reach out to me for a free home evaluation, and I am happy to walk you through selling in this current market. https://lorenzgroup.ca/evaluation If you want to know how to best position yourself in this buying market, reach out for a free buying consultation and I am happy to come up with a game plan for you this year. https://lorenzgroup.ca/contact