By Aman K Rana
The Spring Real Estate Market in Edmonton is set to come in like a lion.
Even though my March attire still looks like I haven’t finished Christmas shopping, the cabin fever disappeared in February.
Sales volume jumped 39.7% compared to January, outpacing the 23.6% increase in new listings in the same time frame.
The general indicator of market condition, Months of Inventory (meaning if no new listings came up, how quickly would we run out), dropped from 4.3 in January to 3.4 Months in February. Seller’s still have the advantage depending on segment and community.In terms of Market Value
Semi-Detached Homes led the way with a monthly increase of 4.5%, and 4.8% since last year.
Row/Townhomes kept pace with a monthly increase of 3.8% and 2.3% year-over-year.
Detached Homes were stable with a monthly increase of 2.7%, which is 1.1% higher than this time last year.
Apartment Condos are living on the edge. Coming off a 16% increase from December to January, they saw some stabilization with a 6% drop in February, which puts them 1.4% lower than a year ago.
Macro View – Edmonton remains the most affordable of the major Canadian cities for ownership as well as rentability. Pair that with a dash of salt as it also boasts the highest vacancy rate for purpose-built rentals after years of attractive financing programs and numerous green-lit projects.
Key Investor Takeaway – Playing landlord in the apartment condo market may be challenging given the volume of new rental competition. If veering towards townhomes and larger, don’t be shy to get the offer on the table. Competitively priced listings are getting snagged quickly, with multiple-offer situations still popping up like the unreliable groundhog.
Winning Strategy – Get your professional power team together, strap on your snowshoes, and get to the beach before the flip-floppers catch up to you and start spreading beach blankets – I really need better analogies.