Slow and Steady Numbers a Good Start for 2024
“Slow and Steady Numbers a Good Sign for 2024” – The latest headline from Edmonton Real Estate Association.
Welcome to our first real estate market update of the year for the Greater Edmonton area! As we dive into the data, it becomes clear that the market is already buzzing with activity. With a surge in sales, rising benchmark prices, and a low inventory level, homeowners and prospective buyers are in for an intriguing year ahead. Let’s examine the latest trends and indicators that are shaping the real estate landscape in the Greater Edmonton Area.
Sales Surge and Reduced Inventory
Compared to January 2023, the market saw a remarkable 46% increase in sales, showcasing a highly energized market. At the same time, new listings experienced a more modest 4% increase. As a result, inventory dropped by 13% year-over-year, resulting in the lowest inventory levels observed in January since 2015. With just 3.16 months of inventory available, Greater Edmonton is firmly seated in a seller’s market.
Rising Benchmark Prices
In January, single-family home prices climbed by 4%, while townhouses and apartment-style condos experienced even more substantial growth, with increases of 7% and 6%, respectively, compared to January 2023. These price shifts indicate a bus market, providing a solid foundation for current homeowners and challenging prospects for potential buyers.
The Interest Rate Landscape
The Bank of Canada has diligently maintained steady interest rates for four consecutive decisions amidst moderating inflation. However, forecasters widely anticipate that rates may begin to drop in the third quarter of this year. Even as rates remain stable, the exciting news is that lenders are already offering 5-year fixed mortgages below 5%, which we haven’t witnessed in quite some time. This development opens up new opportunities for homeowners to secure favourable financing terms, creating more demand from buyers.
Record-breaking Net Migration and High Demand
Record-breaking net migration into the province continues to fuel demand in the Greater Edmonton Area. As newcomers flock to this region, well-priced and well-marketed listings frequently sell with multiple offers after only a few days on the market.
✅ If you are interested in a free home evaluation or would like a market analysis on a potential property, call me direct at 780-777-9703!
Information gathered from the Real Estate Association of Edmonton.
Jarett Johnson Real Estate
