Edmonton real estate market sees first big drop in sales in 2022

Content of the article

The Greater Edmonton Area real estate market took a hit in July, with the region seeing total residential unit sales fall 23.8% from June 2022 and 10.3% from last July.

Content of the article

Paul Gravelle, chairman of the board of the Realtors Association of Edmonton (RAE), pointed to two reasons for the drop in sales: higher interest rates and the time of year. He said it is normal for the numbers to tend to drop in the summer.

« You never want to predict some of these numbers, but it’s not shocking that it’s generalized across all products, » he said, adding that he expects the downward trend continue over the next two months.

Along with the drop in sales, the number of new residential listings fell 14.8% from last month, but there was a 6.2% increase in new listings from last July.

Sales fell across most unit types, with single-family home sales down 24.4% from June 2022, condo sales down 22.1% and duplexes down 21.3%. month to month.

Content of the article

« It just means we need to refine our tools and understand that consumer confidence is starting to weigh a little bit, » Gravelle said.

« The ads aren’t moving, our average days in market are starting to go up there, so people are taking longer to sell and so you just have to set that expectation for your sellers. »

The RAE said single-family homes averaged 33 days on the market in July, an increase of six days from June. Condominiums were on the market for an average of 52 days, up seven days, while duplexes were on sale for an average of 34 days, an increase of five days month-over-month.

« We’re going to have to show better, we’re going to have to have a better price, you can’t just throw a sign on the lawn and hope it sells out, » Gravelle said.

Content of the article

“We are going to have to make sure that we let every potential buyer in, whether it is a good buyer or a bad buyer, but we want to make sure that everyone comes to see the properties and that it shows. in the best light at all times. »

The average price of houses and condominiums in the Greater Edmonton area was lower in July than in June 2022.

Single-family homes sold for an average price of $489,370 in July, a 5% increase from July 2021 and a 1% decrease from the previous month. Condominiums sold for an average of $229,463, down 4.4% year-over-year and down 3.7% from June 2022. Duplex prices were up 4, 3% from July 2021, selling at $372,864, but saw a price drop of 1.4% from June 2022. cent of the previous month.

Although the region is seeing a decrease in the number of unit sales and the average price per unit, Gravelle said now is still a good time to be a buyer.

“The fact is our economy is still very strong and 5% to borrow money is still relatively cheap compared to what it has been historically,” he said.

« It’s still a good time for buyers to buy, it’s just not as cheap as it was six months ago or 1.5 years ago, so that’s where we need to educate the buyers. »

ktaniguchi@postmedia.com

twitter.com/kellentaniguchi