April 2020 Market Update

Thomas Harrington

From the REALTORS® Association of Edmonton 

Residential Unit Sales Down 55% from this time last year.

"Edmonton, May 4, 2020: Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for April 2020 decreased 55% compared to April 2019 and decreased 35.68% from March 2020. The number of new residential listings is down year over year, decreasing 46.37% from April 2019. New residential listings are down month over month, decreasing 30.66% from March 2020. Overall inventory in the Edmonton CMA fell 19.65% from April of last year and decreased 0.15% from March 2020.
For the month of April, single family home unit sales are down 55.39% from April 2019 and down 34.53% from March 2020. Condo unit sales decreased 58.77% from April 2019 and decreased 42.01% from March 2020.
All residential average prices are down to $353,577, a 3.29% decrease from April 2019, and up 2.80% from March 2020. Single family homes sold for an average of $410,200, a 4.14% year-over-year decrease from April 2019, and a 1.45% increase from March 2020. Condominiums sold for an average of $224,022, a 2.42% decrease year-over-year, and prices are up 2.47% compared to March 2020. Duplex prices dropped 0.30% from April 2019, selling at $329,806, which was a 5.22% increase from March 2020.
“The Edmonton market experienced a significant decrease in year-over-year unit sales, with some downward impact on pricing,” says REALTORS® Association of Edmonton Chair Jennifer Lucas. “Of course, with the outbreak of COVID-19 and the social distancing measures currently in place, this type of market decline is not surprising. There have been significantly fewer sales of single family homes, condos and duplexes than in April of last year. Single family home pricing decreased 4.14%, duplexes are down 0.30%, and condos are down 2.42% year-over-year.”
Single family homes averaged 58 days on the market, a three-day increase from last year. Condos stayed the same as last year at 71 days on the market while duplexes averaged 74 days on market, a seven-day increase compared to April 2019. Overall, all residential listings averaged 64 days on market, a 6.67% increase year-over-year, and increased by four days compared to the previous month."

My take: As somewhat anticipated we see a large drop off of unit sales. Earlier in the month it looked like the Edmonton sales were going to be down 60-70% YoY so it appears the last couple weeks rallied every so slightly as some buyers were still getting into the spring market. As you can see the price decreases on the short term are relatively minor.

I anticipate a few more months where we see sharp drop offs of unit sales when compared to last year, and likely a slow decrease in prices. Depending on how long the global situation lasts, and if Canada is able to reboot its economy, will truly determine how much of an impact there is on prices. Real estate prices have a long lag time, if there is a large price correction coming, it will be a few months before it is realized.

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