Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.  

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

Larry Westergard, President of the REALTORS® Association predicted a stable year ahead for the local housing market. REALTORS® expect sales figures, which have drooped in the last two years, will follow the trend established in the last half of 2009 and continue to climb. “Edmonton has a robust economy and consumer confidence is high,” said Westergard. “We anticipate sales of about 21,000 units in 2010 which is up 10.5% from the 19,000 residential properties sold in 2009.”

Prices for single family homes and condominiums will remain stable. Average prices for single family homes will vary through the year within a small range. “Prices in the spring are always higher than January or December,” explained Westergard. “Month-to-month variations, both up and down, can be expected, but overall we expect prices to rise about five percent.” The average price in December 2010 is expected to be $385,000 as compared to $367,000 today.

The resale condo market is feeling pressure from the new condos being built and that will keep prices in check for the next year. Condo prices are expected to remain flat with no significant increase in the year-long average price. Buyers can expect to pay $244,000 (on average) for a condominium next year – about what they would have paid in 2009.

There were just 4,037 residential properties available for sale through the MLS® System at year end and Westergard warned that if inventory figures remain low it could tilt the market in favour of sellers and cause prices to rise higher than expected. On the other hand, if mortgage rates go up it could prevent some potential buyers from entering the market and put downward pressure on prices.

“REALTORS®, homeowners and sailors all want calm seas and smooth sailing,” said Westergard. “It appears to be a stable market ahead with strong sales prospects will make the ride comfortable for everyone.”