Welcome to our first real estate market update of the year for the Greater Edmonton area! As we dive into the data, it becomes clear that the market is already buzzing with activity. With a surge in sales, rising benchmark prices, and a low inventory level, homeowners and prospective buyers are in for an intriguing year ahead. Let's examine the latest trends and indicators that are shaping the real estate landscape in the Greater Edmonton Area.
Sales Surge and Reduced Inventory
Compared to January 2023, the market saw a remarkable 46% increase in sales, showcasing a highly energized market. At the same time, new listings experienced a more modest 4% increase. As a result, inventory dropped by 13% year-over-year, resulting in the lowest inventory levels observed in January since 2015. With just 3.16 months of inventory available, Greater Edmonton is firmly seated in a seller's market.
Rising Benchmark Prices
In January, single-family home prices climbed by 4%, while townhouses and apartment-style condos experienced even more substantial growth, with increases of 7% and 6%, respectively, compared to January 2023. These price shifts indicate a bus market, providing a solid foundation for current homeowners and challenging prospects for potential buyers.
The Interest Rate Landscape
The Bank of Canada has diligently maintained steady interest rates for four consecutive decisions amidst moderating inflation. However, forecasters widely anticipate that rates may begin to drop in the third quarter of this year. Even as rates remain stable, the exciting news is that lenders are already offering 5-year fixed mortgages below 5%, which we haven't witnessed in quite some time. This development opens up new opportunities for homeowners to secure favourable financing terms, creating more demand from buyers.
Record-breaking Net Migration and High Demand
Record-breaking net migration into the province continues to fuel demand in the Greater Edmonton Area. As newcomers flock to this region, well-priced and well-marketed listings frequently sell with multiple offers after only a few days on the market.
City of Edmonton Stats
The first month of 2024 has set the stage for a hot market in the Greater Edmonton area. With sales soaring, prices appreciating, and inventory levels hitting record lows, sellers are well-positioned.
It will be interesting to see what happens this spring. Stay tuned for our future market updates as we navigate the market together, armed with data-driven analysis and insights.Posted by Liv Real Estate on