Source: Multiple Industry Reports and Data
The Edmonton housing market is currently undergoing a significant transformation, marked by rapid price increases, intense competition, and shifting dynamics. Whether you want to buy or sell, understanding these trends is critical for making informed decisions.
The Current State of the Edmonton Housing Market
As of mid-2024, the Edmonton real estate market is experiencing significant growth. Several important factors contribute to this shift:
Economic Recovery: Edmonton's economy has recovered well despite the pandemic-related downturn. According to recent data from the Edmonton Economic Development Corporation (EEDC), the city has experienced a strong recovery, with higher employment rates and economic stability boosting housing demand.
Population Growth: The city is attracting new residents from other provinces and international locations. According to Statistics Canada, Edmonton's population growth is being driven by its appealing lifestyle, low cost of living in comparison to other major Canadian cities, and a strong job market.
Low Inventory: The current market presents a significant challenge due to low inventory. Many potential sellers are holding off due to higher mortgage rates, resulting in a scarcity of available properties. According to the REALTORS® Association of Edmonton (RAE), the inventory of homes for sale has been significantly lower than historical averages, creating a competitive market for buyers.
Price Trends: Due to a lack of supply and high demand, home prices have increased significantly. According to the Canadian Real Estate Association (CREA), the average price of a single-family home in Edmonton has increased by 6% year over year. Condominiums and townhouses have also experienced significant price increases, mirroring the overall market trend.
Buyer Tips for a Competitive Market.
Obtain mortgage pre-approval before searching for a home: This not only clarifies your budget, but also shows sellers that you are a serious and ready buyer. According to the Edmonton Mortgage Brokers Association (EMBA), getting pre-approved can help you stand out in a competitive market.
Act quickly: In a fast-paced market, hesitation can result in missing out on a property. Be prepared to make quick decisions and submit offers as soon as you find the right home. The RAE reports that Edmonton homes frequently receive multiple offers within days of being listed.
Collaborate with a Local Agent: Working with an experienced local real estate agent can offer valuable market insights. They can quickly alert you to new listings and guide you through bidding wars. The Edmonton Real Estate Board (EREB) emphasizes the value of local expertise in a rapidly changing market.
Be flexible: In a seller's market, you may need to compromise on features or adjust expectations to find a home within your budget.
Seller Tips in a Hot Market
Price strategically: In a hot market, avoid overpricing your home. Consult with your real estate agent to determine a competitive price that reflects current market conditions. According to EREB, homes that are reasonably priced are more likely to receive multiple offers and sell quickly.
Enhance Curb Appeal: First impressions count. Make sure your home is in excellent condition, and consider staging it to attract more buyers. Small improvements and effective staging can significantly increase your home's appeal. The National Association of Realtors (NAR) emphasizes the importance of curb appeal and presentation in achieving sales success.
Review offer carefully: When reviewing multiple offers, consider more than just the highest bid. To select the best offer, compare terms such as financing conditions and closing timelines. RAE recommends conducting a thorough review to ensure you get the best overall deal.
Prepare for a Quick Move: Because homes are selling quickly, you should have a plan in place for your next steps, whether they include finding temporary housing or preparing for a new purchase.
Looking Ahead
The Edmonton housing market is poised for continued growth in 2024. Factors such as potential decreases in mortgage rates and ongoing population growth could further influence market dynamics.
Need Expert Assistance?
Navigating a hot real estate market requires expertise and strategic planning. Mukul Oberoi & Associates is a team of licensed commercial and residential realtors based in Edmonton, Alberta, Canada. Call or text Mukul at 780.676.5000 to get started and make the most of the current market opportunities.
