NOTE:
This is a multipart series that will span the next week or so. We will start with the districts in Edmonton and then move out to look at some of the surrounding communities. Let's start on the south side and move clockwise around the city!
--
Picture the South district as being the south bank of the river down to the Whitemud - so, from the University area east to Refinery row. It is a traditionally mature district which has a good mix of property types and includes a decent mix of condo and single family residential. The area is seeing some new developments - mostly condo projects, but also infill due to the desirability of many of the neighbourhoods being close to some of the more trendy areas of the city (Whyte Ave). Here are the key real estate numbers for the South:
SINGLE FAMILY HOMES
- # of TRANSACTIONS
- 2012 - 1036
- 2013 - 1115 UP 7.6%
- AVERAGE SALE PRICE
- 2012 - $410,009
- 2013 - $433,448 UP 5.7%
- DAYS on MARKET
- 2012 - 40 days
- 2013 - 36 Days
CONDOMINIUMS
- # of TRANSACTIONS
- 2012 - 364
- 2013 - 434 UP 19.2%
- AVERAGE SALE PRICE
- 2012 - $281,540
- 2013 - $291,205 UP 3.4%
- DAYS on MARKET
- 2012 - 58 days
- 2013 - 57 days
Thoughts: While transaction numbers have not reached the highs we saw in 2005/06, prices have now seemingly recovered back to those levels. What bodes well I think is that this is being done in a calm and steady pace as the days on market would suggest, rather than the fast 21 day average we were seeing then, the 36 day average points to a market that is on more of an even keel. In 2014 I think we will see transaction numbers go up again - for SF homes 7.5% is not unreasonable (bringing totals to about 1200), while for Condos I would not expect an increase that is that high but most likely on par with the SF numbers - 7.5% (467 units). Prices will most likely see similar increases which will bring them to approximately $450,000 for SF and $300,000 for Condos - both historical highs in the area. I don't see much of a significant lessening of time on market in either category so it is still going to over a month to sell a home and almost two months to sell a condo!
The Southeast is that area which is sat of Calgary Trail and South of the Whitemud - so the established communities of Millwoods and Wildrose/Silverberry alongside the newer areas of Tamarack/Laurel and then the Ellerslie Road communities of Summerside/Orchards, Ellerslie and Walker Lakes. It is also a very good mix of residential single family and condominiums both new and mature neighbourhoods. The 2013 key numbers:
SINGLE FAMILY HOMES
- # of TRANSACTIONS
- 2012 -1367
- 2013 - 1431 UP 4.7%
- AVERAGE SALE PRICE
- 2012 - $365,361
- 2013 - $376,264 UP 3.0%
- DAYS on MARKET
- 2012 - 47 days
- 2013 - 41 Days
CONDOMINIUMS
- # of TRANSACTIONS
- 2012 - 510
- 2013 - 644 UP 26.3%
- AVERAGE SALE PRICE
- 2012 - $209,289
- 2013 - $219,098 UP 4.7%
- DAYS on MARKET
- 2012 - 58 days
- 2013 - 53 days
Thoughts: Activity numbers in this area have exceeded the numbers we saw during the "boom" period of 2006/07 but before anyone gets too excited, remember that a lot of this is organic growth due to the new neighbourhoods that have grown in this area during this period. As the new home market melds into the MLS data more and more, this has helped to add bulk to the existing stock of homes and condos available to the market. This is true in both categories although the condo market still has a ways to go to catch up to the 933 units sold in 2006. Prices have also seen positive movement back to the numbers posted back then, but the continuing competition from the new home market has kept prices still below those levels. Days on market are still well above the historic averages in both sectors. In 2014 I believe that we will continue to see increases in both SF and Condo sales and prices with the SF market seeing comparable results and the Condo market being a bot more modest than 2013. I expect SF transactions to increase to 1500 sales (4.8%) and SF average price 3.6% to $390,000. In the Condo market look for a more modest 15% increase in sales to 740 units and an average sale price of approximately 3% to $225,500.
Go west of Calgary Trail and south of the Whitemud to find the Southwest district. It comprises some of the most desirable and distinguished living areas in Edmonton - Riverbend, Windermere, Westbrook and the new developments in Heritage Valley. There is also a very good cross section of living too, from affordable housing in both condo and single family homes to the larger than life homes you can find in Riverbend and along the Ravines. The key numbers for 2013:
SINGLE FAMILY HOMES
- # of TRANSACTIONS
- 2012 -1515
- 2013 - 1671 UP 10.3%
- AVERAGE SALE PRICE
- 2012 - $493,093
- 2013 - $509,467 UP 3.3%
- DAYS on MARKET
- 2012 - 49 days
- 2013 - 48 days
CONDOMINIUMS
- # of TRANSACTIONS
- 2012 - 650
- 2013 - 888 UP 36.6%
- AVERAGE SALE PRICE
- 2012 - $262,371
- 2013 - $265,714 UP 1.3%
- DAYS on MARKET
- 2012 - 58 days
- 2013 - 58 days
Thoughts: Again, I think a lot of the growth in transaction numbers is organic. The Heritage Valley and Windermere developments are creating huge growth numbers in available homes, much of which is finding its way onto MLS sooner rather than later hence the double digit increases. This is also a fair explanation for the modest price increases (3.3 and 1.3% respectively) we see and the really mundane days on market numbers. In 2014, look for SF sales to crest over 1850 units (+10.7%), but Condo sales to slow a bit to 750 units mostly in the heels of many large projects either being finished or near sell out. Prices will again see modest gains with SF pricing increasing just over 3% to $525,000 and Condo pricing rising to $270,000 (about 1.5%). As in 2013, I do not expect the time to sell to be very short; look at a period of 1 and a half months for homes and almost two months for condos to be the norm.
---
So that concludes our first instalment at the year in real estate. The South side of Edmonton continues to be a robust and active market that has a selection of properties for almost every home buyer out there.
Remember, whether you are looking to buy or sell it's important we sit down and look at the specifics that relate to you and your needs. How the numbers I talk about for the general areas related to the home or homes that you have a specific interest in.
Give me a call direct at 780-919-7653 or send me and email at lwestergard@remax.net.
Thanks for reading!
No comments:
Post a Comment