Edmonton Real Estate Market Report: Quarter Three, 2022
2022 has been a wild ride with extreme changes, not unlike the weather in Edmonton. Unprecedented amount of factors including the pandemic, rising interest rates, gas prices, inflation, and the war in Ukraine all contributed to an everchanging and quick adjustments in the Real Estate market.
The first quarter offered sellers an incredible opportunity as interest rates remained low, buyers were highly active, and inventory was sparse. With lineups out front doors, multiple offers, and quick sales - buyers were at an incredible disadvantage and some were left with nothing to buy. While sellers who acted fast and listed their homes early in the year, enjoyed the quick sales and opportunity to move.
The second quarter of the year brought many more sellers to the market as they were catching wind of how much and how fast properties were trading for at the start of the year and buyers began to get a reprive from the agressive market; however homes in the SW of Edmonton continued to prevail as the hottest and most in demand homes.
This past quarter has been much slower than the previous two, ending with lots of available inventory that does not quite match the current needs of buyers. A shocking 70% of all Single Family Homes that sold during Q3 in Edmonton were under $500,000; while currently only 60% of available invertory is priced at that level.
Fewer homes sold in Q3 of 2022 than they did in Q3 of 2021:
What is more interesting, is the value of the homes that sold in Q3 of 2022. Over 70% of all Single Family homes sold, in Edmonton, were under $500,000:
The current available inventory of homes for sale in Edmonton does not match the previous wants of buyers, with a higher level of inventory in the luxury market then is actually selling.
If you are a seller in this market, there are a few tips to stay competitive to get your house sold before winter takes hold:
- PRICE: Currently, buyers tend to be pickier about the price they’re willing to pay due to rising interest rates and a lower affordability threshhold. Really hone in on the listing price you’re comfortable with — if you want to sell quickly, consider listing it on the lower side.
- CURB APPEAL: Never underestimate the power of a well-manicured lawn and pretty flower boxes to grab the attention of potential buyers. Make sure the front of your house is looking its best — you never get a second chance to make a first impression. Buyers often drive around their preferred neighbourhoods window shopping, so give them show-stopping curb appeal they can’t ignore.
- KNOW YOUR WEAKNESSES: While hiring a house inspector is usually done by buyers making an offer, get ahead of the game and hire one as a seller. Having that report available for potential purchasers takes one task off their plate and that might swing the scales.
- SHOW THE BEST: Nothing puts off potential buyers like a home they can’t even see thanks to stacks of papers, overflowing cupboards and messy countertops. Go through each room and pack up 50 per cent of the “stuff” — then store, donate or trash it. When people walk into their potential dream home, they want to see large, airy rooms not shelves packed with personal knickknacks.
- APPEAL TO THE MASSES: Millennials make up the largest cohort of buyers in Canada right now so consider adding features that appeal to this generation. Consider upgrading lighting, hardware or even appliances - $2000 upfront could mean the difference of a sale.
- STAND OUT: it’s all about making your property stand out in a sea of comparable properties. Offering something more creative than just your regular financial incentives, such as prepaying taxes or a year’s worth of landscaping services or paying homeowners’ association dues are just two examples of outside-the-box incentives.
If you are a buyer in this market - you may be able to secure that high value home at a much lower price; however read below for tips on maximizing the value in this current market:
- Get Pre-Approved: There is nothing more defeating then looking at a home you come to learn, you can not afford. It also gives you the opportunity to shop around for the best deal and the best interest rates.
- Work with an Agent: Even before you start looking, even before you attend an open house. A professional can and will give you more options and ensure you stay on the competitive track when negotiating for your dream home.
- Have a Buget and a Plan: Of course, you won’t be able to afford everything on your wish list. So, make two lists: everything you want in a home and everything you can’t live without.
- Do Not Get Dstracted by the Pretty Things. Houses are an investment, they cost money. Shocker right? When you have the pick of available homes you should put higher value in the mechanical and structural integrity of the home. Roof! Furnace! Windows! Plumbing! Electrical! Foundation! These are the BIG TICKET items that should be the highest priority - not the wallpaper in the bathroom.
- Consider Future Revenue: With so much uncertainty about the economic future, you might want to consider purchasing a home that could or does have a secondary suite (ie. basement suite). While you never have to rent it, having the option in the future could offset some expences if jobs, economy, or life took an unexpected turn.
- Location is Everything. A home can be renovated, the location cant.
- Put Together an ICONIC Home Buying Dream Team: including an experienced real estate agent, professional home inspector and mortgage lender; if you’re buying investment property, add a tax expert and a real estate attorney. All of these professionals should willingly and kindly share their knowledge and expertise. If not, find someone else.
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