JUNE 2020 : DOWNTOWN EDMONTON CONDOMINIUM MARKET AMIDST COVID 19 ALBERTA RELAUNCH

Posted on Jun 11, 2020

In Edmonton right now:

  • There are currently 2,247 active condo listings
  • Average DOM (Days on Market) is 72 days with an average listing price of $275,618
  • 200 listings sold last month with an average DOM of 72 days and an average sale price of $193,097 (listing price of $203,098)
  • We have 11.23 months of inventory with buyers and sellers negotiating 95.1% sales to asking price

In Zone 12 (Downtown & Oliver)

  • 389 active listing in Downtown with an average DOM of 67 days and listing price of $390,523
  • 15 Homes sold last month with an average DOM of 75 days and Average selling price of $214,783 (listing price of $228,520)
  • We have 25.9 months of inventory with buyers and sellers negotiating 94% sales to asking price

What we're seeing:

  1. Painfully slow in the core of the Downtown/Oliver as we suspect majority (albeit limited market) are visiting Single family homes or new home options before considering downtown condos
  2. Job market uncertainty still lingers making it difficult for first time buyers to qualify
  3. Buyers are taking longer to make their decision as they gamble on when the recovery of the market will happen
  4. Negotiations have been taking longer and more aggressive but we are seeing a willingness from buyers and sellers to come together
  5. Sellers are much more realistic to the current market realities

What we expect:

  1. Hesitation to Buy/Sell during Covid slowly start to ease up. With Stage 2 moved up and Alberta Covid 19 numbers low, many buyers are starting their search now to see what options there are available for them.  Prices have been aggressively dropping where there are some options we seen have dropped ~8%-10% in year over year and sellers are motivated for offers to come in.  
  2. The market is ripe with great opportunities for a buyer right now, we have seen a jump in Single family home activity which means prices may trend up seasonally, when it reaches a point where value is no longer viable, buyers will turn to condos to see if opportunity is available.
  3. Luxury condo market to be very challenging with loads of new units coming on the market this summer as Encore completes with loads of options available within ICE district.

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