A recent hike in interest rates may have led June real estate sales in St. Albert to increase significantly compared to the same month last year, said a local realtor.
Average sales for single-family homes increased by more than 55 per cent in June, compared to a year ago, the Realtors Association of Edmonton reported this week in their monthly housing bulletin.
Cheryl Rolfe, St. Albert ReMax real estate agent, said summer is always a busy time for sales. Buyers can view the property and yard and want to settle into a new home before the start of the school year.
The rise in interest rates in the past few weeks may have worried people and driven them to buy homes even faster, she said.
“People are more likely to buy if they think it will cost them a little bit less now than what it may (cost) later,” Rolfe said.
“I think it’s another situation where people see a trend and they wonder if it will continue. Especially on an expensive home with a higher mortgage it can make quite a big difference.”
St. Albertans sold 102 single family dwellings in June, compared to 77 a year earlier. The average selling price for singles was $450,860. A year previous the price was $416,020. The median price for single family homes last month was $417,450.
Condominium sales remained fixed in June 2012 and 2013. St. Albertans sold 28 condominiums at an average price of $290,670, compared to a year ago at $263,685. The median price for a condo was $297,500.
The report by the Association added that housing prices in the Edmonton region showed a slow and steady increase in the first six months of the year.
To date St. Albertans sold 485 single family homes, 21 more homes than in 2012. Condominium sales rose from 125 last year to 139 in 2013. The average days-on-market for all residential property was up to 47 days from 45 days a year earlier.
“Economic conditions in the Edmonton area are generally positive and this is reflected in our local housing market,” said Darrell Cook, president of the Association, in a press release.
“Prices have risen slowly through the first six months and there is nothing in our local economic trends to indicate that this period of stability will change.”
The average all-residential price for the Edmonton region in June was $359,631, with single family dwellings selling at an average $412,269. Condominium prices were at $261,854
