Happy November, everyone! In this monthly update, we'll delve into the latest statistics from Edmonton's real estate market. Despite soaring interest rates, the market has some fantastic news to share.
Out-of-Province Sales Boost Edmonton's Real Estate Market
Despite high-interest rates, the Edmonton real estate market is experiencing a surge in sales, primarily due to out-of-province buyers. People priced out of Ontario and BC markets are finding affordable options here. Notably, condo sales have seen a remarkable 57% increase compared to the same month last year, a trend that has been unheard of. The surge is primarily in affordable low-rise condos.
Record Million-Dollar-Plus Condo Sales
Despite the majority of sale increases being in the lower priced condos, luxury condos are also making strides. While the total sales are still lower than we would like to see, we’ve doubled the sales from this time last year. This is a trend we want to continue to see. While the condo market still has plenty of room to recover, the general market is thriving. With just three and a half months of inventory, the overall market is leaning to a seller's advantage. Single-family homes are in high demand, and good listings are selling swiftly.
Anticipated Interest Rate Changes
Despite our healthy sale numbers, prices aren’t skyrocketing. Our local buyers remain cautious due to interest rate concerns, but there's hope on the horizon. The expectation is that interest rates may start to decline as early as late spring to avoid further economic concerns. This summer is when many of the mortgages that were originally fixed below 2% will come up for renewal and the increase in payments from today’s interest rates could put many homeowners in positions of excessive financial strain. As a result, most economists agree that the government will pull back on rates—an adjustment that will help to further strengthen the real estate market.
The Outlook for the Luxury Market
While luxury sales have dipped slightly from previous years, they remain resilient. The overall market is expected to maintain its positive trajectory throughout the year.
In conclusion, Edmonton's real estate market is on an upswing, driven by out-of-province buyers, strong condo sales, and favorable inventory conditions. As we move into the future, we anticipate further positive developments. We look forward to updating you next month.