The Edmonton real estate market has been on a wild ride over the past few years. But what does the market look like in 2023? Will it be a sellers’ or buyers’ market? We'll take a look at some of the factors and facts that could influence the Edmonton real estate market in 2023. If you are selling or buying, it is very important to know the biggest factors effecting you.
In the first 60 days of 2023 only 1700 single family homes have sold which is almost 1300 fewer homes sold in 2022 in the same time period.
Volume is down!
By area, the North and Central Region are seeing the highest volume of sales, followed closely by the SW. The lowest regions as it relates to volume is the South and Millwoods regions.
While the volume is down year over year, there may be some areas of Edmonton that have less inventory available currently then what the market demands.
Supply of available inventory in the South and South West region looks light compared to what is actually in demand, thereby prices may trend higher in those areas compared to others:
Volume is only a part of the information, if we examine the sold values that are trending YTD in 2023 we find that we are mirroring the same values from 2022 in almost every catagory. Such as 45% of all homes sold in the first 60 days of 2023 were UNDER $400,000 and in 2022 46% were sold under $400,000 in the same time period.
So while volume may be down, values have remained relativly flat compared to 2022 so far.
So volume is down and prices are flat. What does that mean?
If you are considering selling our home right now, pricing your home correctly or better yet, competitivly, it is going to be much more important now as our current available inventory is not reflective of what is actually selling.
Supply is not meeting the needs of demand!
Sellers are going to be facing steaper competition to sell with more available options to choose from in some price ranges; whereas buyers are going to face extreme competition in others!
In the first 60 days of 2023, 15% of all homes sold were priced between $300,000 and $350,000; whereas the current available inventory maintains less that 5% in that same range. If you are a buyer with an mortgage pre-approval in this range, you are going to be competeting with more buyers over fewer homes. If you are a seller, or considering selling in this range, NOW IS THE TIME and you may just end up with multiple offers.
However, if you look at other value ranges such as $700,000 - $1,000,000 which makes up almost 12% of our available inventory, but only 4% of the actual sales so far. Sellers in this price point are going to need to make sure they are the best options to attract a smaller pool of buyers. Buyers in this price range are going to have their pick and are likely going to be able to negotiate more on price and terms.
Volume is down, prices are flat and the current supply of inventory is not in line with demand.... but how does that compare to areas?
Of all the available homes for sale right now in the Edmonton area, compared to what is actually selling is not lining up either. Of all homes sold YTD in 2023, the average house prices have been by area:
Average sold home prices are under $500,000 in all regions, with the SW being the highest (no surprise there) and the North Region being the lowest. However when you compare that to what is currently available, the difference gets more extreme with only the North region offering prices reflective of what the market is showing us.
Sellers in most regions are going to need to temper their expectations of what value they will get for their homes this year as there are fewer buyers able or willing to spend the amounts offered for sale. Buyers are going to need to also temper their expectations in which areas they will consider, or compare what they are willing to sacrifice to be in specifc areas.
You will need to be very specific in how you price your homes this year. Understand that buyers search in $100,000, but usually $50,000 price ranges most of the time. You will need to be the best house in the $50,000 bucket to get the highest attraction from buyers this year. Know your competition and aim to be better in every way.
If you want to list your home at $410,000, know that you will be compared against the best homes priced at $450,000; whereas if you price your home at $399,000, you will stand out as the best against the homes priced at $450,000.00.
In most price points, you will have a higher volume of choice to choose from, so choose wisely and look for the best value. Homes with upgrades such as furnaces, roof, windows, and mechanical will be a safer investment and should become a non-negotiable for you soon. However, in other price points you will face stiff competition with a higher volume of buyers looking for the same inventory. It is more important then ever to be working with a Real Estate professional who will update you the SECOND a property hits the market. Do not delay, get in there.
If you are a buyer, shopping for a home between $300,000 and $350,000, the market is HOT HOT HOT! Check out my list of available homes here that is continuously updated!
Also, consider the areas you are looking in. Everyone wants to live in Westmount with its iconic historical architecture, access to the vibrant businesses on 124 Street and easy commute to downtown, but with an average home price of $540,000 it is not a viable option for most people. Therefore, if you want to live in Westmount than I would recommend considering Inglewood, Prince Rupert or Woodcroft. All three neighbourhoods maintain a much lower median house price of around $300,000; as well they provide many of the same amenities as Westmount, but with a much more affordable price tag.
Other considerations that will effect the Edmonton Real Estate Market in 2023 will be population growth. The city has grown rapidly over the past decade, with new residents drawn to its low unemployment rate and burgeoning economy. This influx of people is likely to continue into 2023, leading to increased demand for housing, with the potential to drive up property prices.
Another important factor to consider is the economic trends in Edmonton. The city has a long track record of job growth, but it's expected that this could slow down somewhat over the next few years. This could put downward pressure on real estate prices, as fewer people will be able to afford higher-end properties. Therefore, it's important to keep an eye on the city's economic performance in 2023, as this will have a direct impact on the real estate market.
There are several factors at play when it comes to the real estate market in Edmonton. Paying attention to economic performance, interest rates, neighborhood trends, and demand and supply can all help you make the best decision when purchasing a home in Edmonton. With careful research and analysis of these factors, you are sure to find an excellent property at the right price and we can help.
Whether you are in the market to buy or sell, having a plan and professional advice is more important then ever. Contact me, Caitlin Heine, and we can review the best course of action for your specific needs!