When you compare the current real estate market in the Greater Edmonton Area to 2022, or 2021, things look pretty bleak - sales are down 44% from last March, prices are down 8%, and inventory is up 20% - but when you take a look at the bigger picture, 2023 is looking like one of the best years in at least a decade. Have a look at the charts below, and you'll see what I mean.
Meanwhile, in Calgary, inventory is at its lowest level for March since 2006!
According to CREB® Chief Economist Ann-Marie Lurie, “The challenge has been centred around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
Luckily we don't have the inventory crunch Calgary is facing, with inventory up 20% over last year. However, 22% fewer new listings came on the market than last March, so we could see inventory start to drop as demand increases. With an unexpected drop in fixed-rate mortgage rates in March, and further declines expected, many buyers that put their plans on hold in the recent past have re-entered the market. In fact, with only 3.5 months supply of listings, we are back in a Seller’s market, which will lead to higher prices.
The question for buyers will be whether declining mortgage rates will make up for the price increases a seller’s market will bring. One thing we can say for certain is that the spring real estate market is in full swing. Our agents are already seeing lots of multiple offer scenarios, particularly in the more affordable price ranges.
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