St. Albert buyers are snapping up condos this summer as high prices push residents to smaller, cheaper homes, say analysts.
The REALTORS Association of Edmonton published its monthly market update Aug. 1. The report suggested that the greater Edmonton region was shifting to more of a buyer’s market, with sales lagging, inventories growing, and prices down in July compared to June.
St. Albert somewhat bucked this trend, with detached home sales up 12 per cent and prices up about 6.5 per cent in July compared to June. On a year-to-year basis, the city’s detached home market was mostly unchanged, with sales down five units and average sale prices up about 7.2 per cent. Condo sales were up roughly 46 per cent (111 year-to-date compared to 76) from last year, with average prices up about 4.5 per cent.
“St. Albert’s market has really been defined by stability in sales and strength in pricing,” said Darlene Reid, chair of the REALTORS Association of Edmonton, with the city’s schools, parks, and reputation for safety and community continuing to make it an attractive place to live.
“It keeps it really high on buyer’s lists.”
From red-hot to lukewarm
Brian Cyr of Cyr Willman Real Estate Group said St. Albert’s housing market was currently coming down from the red-hot conditions of the last two years, where scarce supplies put sellers in the driver’s seat. Now, builders are catching up, with some 137 detached homes up for sale as of Aug. 12.
“Almost half of those are new builds,” he noted, which could make sellers of older homes in established neighbourhoods stand out.
While we’re still affordable compared to the rest of Canada, detached homes in St. Albert were still expensive, with maybe a hundred properties listed for less than $500,000 in the city, said Ray Watkins of Watkins Land Development.
“That’s not that affordable.”
Those prices explain the surge in condo sales seen here and throughout the region, Cyr said. A first-time buyer usually doesn’t have the $600,000 needed for a typical St. Albert single-family home, so they go for a $350,000 townhouse instead.
Reid said it’s still something of a seller’s market in St. Albert, as housing supplies were still fairly tight. Sales in Erin Ridge North and Jensen Lakes were brisk, and her St. Albert clients were getting multiple offers on their homes.
“We’re also seeing really strong rental demand,” she continued, with some investors buying condos with the intent to rent them out.
Reid said St. Albert buyers would have to move fast to secure homes in this market, which might mean passing up home inspections or other conditions. She encouraged buyers to look at homes that have been on the market for many weeks, as those selling them might be more willing to negotiate.
Today’s buyers know that any home on the market for more than 14 days is probably overpriced, Cyr said. Instead of starting high and coming down, he advised sellers to start with a competitive price and let buyers bid it up.
When it comes to affordability, Reid said her organization sees pre-fabricated homes as one answer. Such homes are built mostly off-site, which reduces waste, cost, and construction time. Cyr said the $12 million the City of St. Albert got from the federal Housing Accelerator Fund last March will reportedly add about 300 new housing units to the city a year, which could help make homes more affordable.
Visit realtorsofedmonton.com/market-stats for more housing market information.
