Edmonton housing prices continue upward climb

Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.

According to the Multiple Listing Service®, the average price for single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.

“Despite price increases, we have experienced a record number of sales each month this year,” said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly and sales will not be as torrid as they have been so far this year,” she said.

August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.

“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.

New home price rise fastest since 1989
Financial Post, August 11, 2006
Canadian new-home prices rose at their fastest pace since 1989 in June, led by Alberta, where an energy boom has led to a housing shortage. New home prices jumped 1.4% during the month and have gained 9.8% in the 12 months ended in June, Statistics Canada said. Prices in Calgary jumped 49%. The shortage of equipment, staff and homes in Alberta has fuelled consumer prices and helped push the annual inflation above the Bank of Canada’s 2% target for seven consecutive months. The central bank paused last month after raising the benchmark lending rate seven times since September, and indicated it may not need to raise rates again this year. “These numbers are definitely going to get the banks attention,” Andrew Pyle, an economist with Scotia Capital in Toronto, said. Still, rising home prices won’t be enough to change the central bank’s thinking on keeping the main interest rates at the current level of 4.25% he said.