A quick glimpse into the market, from my perspective:
With the painful oil prices and job losses in Alberta, the media has definitely been painting a pretty bleak picture of the real estate market in Alberta - but despite the fact that 2015 sales activity fell -17.7% provincially, and -6.3% year over year in the greater REALTORS Association of Edmonton alone (the Edmonton Real Estate Board), prices seem to have remained relatively stable both in Alberta overall, and locally - at least for the time being.
In fact, 6 of Alberta's 10 Real Estate Boards saw increases in their average all-residential sales price, including the REALTORS® Association of Edmonton at a modest gain of 1.0% year over year.
Within the CITY of Edmonton by December of 2015, the average all-residential price went up +2.3% year over year. Individually, the average sale price of Single Family Detached Homes fell moderately by -1.2%, but Apartment Condos were up +1.5%, and Townhouses up +5.3% (From RAE Stats).
So, what makes buying residential Real Estate in Edmonton so appealing right now is not necessarily that properties are suddenly and rapidly shedding their value or that "a bubble has popped"; the appeal is that there are TONS of options to pick from, and lenders are offering very low interest rates (but don't forget there are other very important factors to look for in a mortgage beyond a low interest rate).
To be fair, the market is certainly not a rosebush, but it is also not a desolate wasteland.
There are thousands of more properties available now than there were at this time last year, which creates a very competitive pricing environment, and can potentially lead to decreases in values. With that said, attractive prices on attractive properties can still result in multiple offers and sale prices above the initial market position of the home.
Of course, many factors play into what made 2015 what it was, and many factors will perpetuate what is to come of 2016. One such factor contributing to prices being "up" in Edmonton, is the 122 homes over $1M that sold last year - naturally that will bring up an average.
All things considered, we have a very complex market in Edmonton, and now more than ever you should have an expert in your corner for all your real estate needs.
So, if you're considering a move and would like to know the current market value of your home, or just have any curiosities about buying or selling in the current market, always feel free to reach out to me.
If you'd like to glance at the big picture numbers from 2015, the link below will take you to the annual provincial stats from our Alberta Real Estate Association.
The REALTORS® Association of Edmonton will be releasing the January 2016 numbers within the next couple of weeks, which we will also post a link for.
Thanks for your your interest!
-- Ken Dumas, REALTOR®
RE/MAX® River City's PLATINUM TEAM