Slowdown attributed to first-time buyers’ increasing preference for semi-detached products
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Home sales activity in Edmonton declined on a monthly basis in August, according to new data from the REALTORS® Association of Edmonton.
Compared to July, the number of homes sold in the city went down by 4.93 per cent last month, down to 1,542 units. And while this represented a 2.03-per-cent year-over-year decline in sales, the performances of individual asset classes are indicating a shift in the preferences of Edmonton’s first-time buyers.
“Entry level buyers appear to be turning their attention to semi-detached product for the best value, as opposed to condominiums. Changes to mortgage rates and qualifying rules may be impacting these segments. In the current market there is significant selection for the value conscious buyer,” Association chair James Mabey said.
“A drop in month-over-month units sold in August is historically normal activity for the Edmonton region,” Mabey explained. “But average sales prices were higher this August than in any August over the last five years. This may be a positive sign for the economy overall and for forward price growth in the housing market.”
Duplexes and rowhouses posted a 1.66-per-cent increase last month compared to July, and 19.48-per-cent growth compared to the same time last year. Meanwhile, single-family detached units showed a 7.28-per-cent monthly decline, and 1.38-per-cent annual shrinkage.
The city’s August prices and sales numbers can be viewed here.
Compared to July, the number of homes sold in the city went down by 4.93 per cent last month, down to 1,542 units. And while this represented a 2.03-per-cent year-over-year decline in sales, the performances of individual asset classes are indicating a shift in the preferences of Edmonton’s first-time buyers.
“Entry level buyers appear to be turning their attention to semi-detached product for the best value, as opposed to condominiums. Changes to mortgage rates and qualifying rules may be impacting these segments. In the current market there is significant selection for the value conscious buyer,” Association chair James Mabey said.
“A drop in month-over-month units sold in August is historically normal activity for the Edmonton region,” Mabey explained. “But average sales prices were higher this August than in any August over the last five years. This may be a positive sign for the economy overall and for forward price growth in the housing market.”
Duplexes and rowhouses posted a 1.66-per-cent increase last month compared to July, and 19.48-per-cent growth compared to the same time last year. Meanwhile, single-family detached units showed a 7.28-per-cent monthly decline, and 1.38-per-cent annual shrinkage.
The city’s August prices and sales numbers can be viewed here.
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