June 2024 Market Update

June Real Estate Market Report: Edmonton, Alberta

June 2024 witnessed a mix of highs and lows in the Edmonton real estate market. A total of 2,847 residential unit sales were recorded, reflecting an 11.4% drop from May 2024, but interestingly, a 10.0% rise from June 2023. Although new residential listings saw a 14.2% plunge from May 2024, they were nonetheless 2.6% higher than June 2023.

From a type-of-residence perspective, detached units’ sales fell by 12.3% from the previous month but were 4.5% higher year-over-year. Semi-detached units witnessed a 5.9% decline month-over-month, but a year-over-year increase of 7.4%. Similarly, Row/Townhouse unit sales dropped by 6.5% compared to May 2024 but saw a significant year-over-year surge of 37.2%.

For the average person, the June real estate market report for Edmonton suggests a few key implications. The significant drop in unit sales from May 2024 indicates that fewer people were buying homes during this period, which could be due to various factors such as higher interest rates or economic uncertainty. However, the increase in sales compared to June 2023 suggests that the market is generally gaining momentum year-over-year. The decrease in new listings from May might mean fewer options for buyers, potentially making the market more competitive. Yet, the slight rise in listings compared to June 2023 indicates some improvement in the availability of homes. Overall, these dynamics suggest a fluctuating market where potential buyers and sellers need to stay informed and possibly act quickly to secure favorable deals.

So, what does this mean for both sellers and buyers?

For sellers: The average prices remain strong, albeit with a slight 0.6% decrease from last month. The average selling price of all residential units stood at $438,973, marking a 6.6% increase from June 2023. Detached homes were sold at an average price of $539,468, semi-detached units at $422,321, row/townhouses at $290,249 and apartment condominiums at $211,583.

This suggests that despite a dip in sales, sellers can still expect to get strong prices for their properties. This should influence sellers to be patient and hold onto their listings in the hopes of obtaining better offers.

For buyers: The decline in unit sales and new listings indicates a plateau in the market, presenting a potential advantage. With the expected decline in sales as we move towards the end of the summer, buyers may find more room to negotiate and secure properties at competitive rates, especially for semi-detached and condo properties, as mentioned by REALTORS® Association of Edmonton 2024 Board Chair Melanie Boles.

Navigating this market requires a strategic approach from both buyers and sellers. Sellers need to understand the value of their properties in the current market and adjust their pricing strategies accordingly. Buyers, on the other hand, should seize the opportunity to negotiate favorable deals, especially in the semi-detached and condo markets.

In conclusion, while the dynamics of Edmonton’s real estate market are changing, there are opportunities present for both buyers and sellers. Staying informed about these shifts can help you make the most educated decisions in your real estate journey.