Each summer we look back at the first half of the year to gain an understanding of how the top tier market is performing in comparison to the years prior. By doing this we can often anticipate how the second half of the year will look and best advise each of our clients on the direction they should take based on their specific real estate goals.
The data below is based on firm sales from January 1st, 2023 to July 1st, 2023.
Edmonton Single Family Homes
$700,000 to $999,999
Total Sales: 317
This Time Last Year (Jan 1st - July 1st, 2022): 612
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$1,000,000 to $2,499,999
Total Sales: 101
This Time Last Year (Jan 1st - July 1st, 2022): 132
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$2,500,000+
Total Sales: 2 (Highest sale at $2,738,000)
This Time Last Year: 7 (Highest sale at $3,700,000)
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Edmonton High Rise Condos
$700,000 to $999,999
Total Sales: 3
This Time Last Year (Jan 1st - July 1st, 2022): 4
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$1,000,000+
Total Sales: 2 (Highest sale at $1,300,000)
This Time Last Year: 4 (Highest sale at $1,707,500)
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Acreage Estates
Strathcona County | $1,000,000+
Total Sales: 30 (Highest sale at $2,450,000)
This Time Last Year: 27 (Highest sale at $2,260,000)
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Sturgeon County | $1,000,000+
Total Sales: 16 (Highest sale at $2,300,000)
This Time Last Year: 23 (Highest sale at $1,975,000)
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Looking at this data we know that while the total number of transactions in every Edmonton category are down noticeably, it is important to note that we saw interest rates climbing at a record pace over the last 6 months which had put many buyers in an uncomfortable position as they tried to navigate the future of the market. Many decided to wait rather than jump into the spring market which created a much slower start than past spring markets. Combining high interest rates and longer days on market often have an effect on property values. Surprisingly though, many sellers were not quick to drop their prices. This was mainly due to the mentality of needing a good price for their home for them to consider buying. This has created stability in the market and prices overall have been steady.
The acreage estate market is a bit different. We have been seeing this trend since the pandemic where more families are looking for more land and living space. There has been a higher demand in the past 2 years for acreage type homes than before. We are also continuing to receive calls from out of town buyers, mainly Ontario and BC that are looking to move to Alberta for a better lifestyle. The comparison of a $1.5M estate in Edmonton to what can be purchased in either of those major markets is an entirely different property. Overall these homes have been fairly stable compared to this time last year.
Looking ahead to the second half of 2023, we are optimistic that buyers will get off the fence and move forward with their plans of purchasing. Many have already begun exploring unique financing options with shorter terms or variable rates with the hopes that rates will come back down in the next 12-24 months.
As always, every individual property owner has a unique situation that requires a more detailed analysis before we can properly advise them on the best direction for them. We invite you to connect with us anytime for a confidential discussion about your specific situation.
Connect with Ryan Debler & Associates to discuss your real estate plans. 780.900.6250 | [email protected]
