For REALTORS® in Edmonton, things are heating up fast. In what is normally a quiet month for real estate in Edmonton, homes are being sold at every turn. Anyone who is interested in purchasing a home in the Edmonton area is advised to act fast. Homes are lasting a short time on the market according to the most recent stats from the REALTORS® Association of Edmonton. It is blatantly obvious that Edmonton’s real estate market is doing better than ever before. In addition to this, the Bank of Canada just hiked the interest rates in an attempt to rein in inflation. Learn more about the market conditions in Edmonton, recent statistics from February, and interest rate hikes in the article below.
REALTORS® in Edmonton are Busier Than Ever.
Edmonton’s real estate market is showing strong momentum through what should be a quiet month. In comparison to other years, the market condition in Edmonton is looking up. According to Tom Shearer, in an article by the Edmonton Journal, he said “In Edmonton we’re lucky if we see more than 20 houses sell over $1 million,” no matter the month. Currently, the number of homes being sold over $1 million is much higher. 34 homes were recorded to be sold in the million-dollar-plus range. In addition, it should be noted that a February this successful is out of the ordinary. Most of the increase in sales is due to people wanting a bigger home or people looking to purchase their first home.
Moreover, an influx of people looking to buy property in Edmonton from out-of-town are now making up a portion of sales in the city. Since housing in Edmonton is more affordable than in other major cities, investors are buying what they can. According to the same article by the Edmonton Journal this “hasn’t happened in a long time”.
People are finally beginning to realize the opportunities that are present in Edmonton. Quality of life, housing affordability, and job opportunities are all major factors in people making the move to Edmonton.
February Market Statistics in Edmonton
In February, the total residential unit sales increased to 69.3% in the Greater Edmonton area. This is up from last year’s 41.7% residential unit sales. Single-family homes were up 35.6% year-over-year. The average price of a single-family home was $493,545. Thus, indicating a 12.7% increase in price from 2021.
As for condos, the number of sales increased 55.2% from February 2021. Furthermore, the average sale price for a condo was $226,811. This means a 1.8% decrease compared to last year during February.
Additionally, duplex unit sales jumped up 55.9% year-over-year. Prices of duplexes in Edmonton saw a small spike in price by 9.1% from February 2021. The average cost of a duplex was $374,290
Homes in the Greater Edmonton Area are moving quickly as we progress into spring. Once the warmer months hit it is likely that housing sales will continue to gain momentum. During the month of February single-family houses and duplexes only lasted 42 on the market on average. This is a 5-6 day decrease from February 2021. REALTORS® in Edmonton are optimistic about the market condition for the remainder of 2022. For a more in-depth look at the February market stats, click here.
REALTORS® in Edmonton on the Recent Key Interest Rate Hikes.
For those who are not aware, the Bank of Canada raised its key interest rate to 0.5% on March 2nd, 2022. This was done in an effort to dampen inflation. Presently, Canadians are seeing some of the highest points of inflation in decades. The decision to raise the benchmark interest rate is expected to be the first of many small rate hikes in 2022.
The latest interest rate hike will certainly be affecting those with mortgages, lines of credit and savings accounts. In our article last month, we discussed what would be to come for mortgages in Edmonton. You can learn more about that by reading the article “Mortgage Forecast for Edmonton Real Estate”.
Lenders are beginning to act in accordance with the most recent hike, as many are raising their prime lending rate. Mortgage payments could start to snowball as rates heighten.
Inflation is rumoured to be growing at a rate faster than what was anticipated. With the ongoing effects from the pandemic and now War in Ukraine, all outside factors are contributing to the quick, increase in interest rates.
Contact REALTORS® in Edmonton Today!
With everything going on in the world, buying real estate can appear intimidating. However, with the help of an experienced REALTOR® in Edmonton, the process is not difficult at all. If you have any questions or concerns about buying a home in Edmonton, contact us today. Don’t hesitate to reach out if you’re curious about the most recent interest rate hikes that will affect your mortgage payment. Our team can put you in touch with the resources you need to get your real estate goals on track. We look forward to working with you in the near future!