In April 2024, the Greater Edmonton real estate market was characterized by high demand and record-setting prices. April witnessed a remarkable 54% increase in sales from the previous year, with a total of 3,128 transactions. This surge not only reflects robust demand but also highlights the increased interest in the Greater Edmonton area as a place to live and invest. A critical factor in this seller's market is the stark 1.75 months of supply, substantially below average and the lowest we've seen in April since I've been keeping track in 2008 (the only other times we've fallen below 2 months of supply was in February and March of 2022).
Inventory Dynamics and Market Pressures
With new listings up by 12% over the last year, relief in the tight market conditions could have been expected. However, demand has kept inventory levels significantly constrained, down 21% from the previous year, standing at 5,461 listings at the end of April.
Migration Trends and Their Impact
The two-year spike in migration, notably with over 200,000 individuals moving to Alberta in 2023—the largest annual increase on record—has been a pivotal factor in shaping the current market conditions. This influx has not only intensified demand but also contributed to the pronounced drop in re-sale and rental supply, compounding the challenges of meeting housing needs.
Implications for Home Prices
Given the lag in supply adjustments in response to rising demand, the upward pressure on home prices is both expected and evident. This trend affords sellers a distinct advantage, and as a result, the average price of residential listings and single-family homes in the Greater Edmonton Area hit an all-time high in April.
Looking Ahead: Optimism and Opportunity
As we navigate through these intriguing times in the Greater Edmonton real estate market, it's crucial to approach it with a blend of market awareness and strategic foresight. For sellers, the current market offers an opportune time to maximize returns. Buyers, while faced with challenges, are reminded that opportunities abound for the well-prepared and well-represented.
City of Edmonton
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