Edmonton’s top tier market is made up of homes valued at $800,000 or more. Taking a look at the month of April we saw a total of 47 single family homes sold in Edmonton. Compared to the previous month's sales (34), we have seen a promising jump. Historically the second quarter of the year also presents one of the highest amounts of transactions. It is important to note that compared to April 2022 there were 98 sales in Edmonton $800K+ with a total of $103,685,136 in sales. A massive year for the Edmonton market and the peak of the sellers market.
The two items that we are watching closely are:
1. Buyer's reaction to the current interest rates
2. Buyer's confidence in the Alberta economy and how much the upcoming election will impact that confidence.
In the last quarter of 2022 interest rates were jumping at a rapid rate to more than double what they were in previous months. Those increases resulted in many buyers stepping backwards. Now more than 4 months into 2023, buyers are realizing that rates are expected to hover around this new range and become the new normal. Our expectation is that the second quarter will continue to present good sales numbers for single family homes. It seems as though many have decided to adjust their expectations and budget. As a result of that, the $375K to $450K range is performing very well.
Buyer's include local Edmontonian's as well as investors and newcomers from other major markets such as BC and Ontario. Still seeing Edmonton as an affordable market with great opportunities for work all while offering a more affordable lifestyle. The confidence of Buyer's has still been strong and we expect that to continue with the city's push for so many mortgage helpers ie: basement suites, garage suites.
Interested to know how your property has performed in the current market? Our team is happy to schedule a confidential appointment to discuss your specific situation. If you are interested, please email [email protected]