Average price, sales slip in Edmonton's housing market

A commodity crash which threatens to burst Edmonton's housing bubble has become cause for caution, for both buyers and sellers, in the local real estate market.

With 618 properties sold inJanuary,sales were down 13.3 per cent from December, and 7.2 per cent since the same timeframe last year, according to month-end statistics from the Edmonton Real Estate Board.

"Sales volumes are down, relative to the same time last year," Realtors Association of Edmonton Chair Steve Sedgwick said in a statement.

"It is likely that home buyers are responding to current economic uncertainties."

Prices in all categories saw a decline in the Edmonton CMA market as many lower priced properties sold in January. According to the report, the all-residential price ended the month at $339,714, down 7.2 per cent from December and 6.3 per cent since January of 2015.

Single family house prices averaged $418,928, down 1.3 per cent and 1.2% from the previous month and year, respectively.

Prices in the condo market slid significantly, dropping 8.8 per cent over last month to an average of $227,052. The duplex/row-house segment of the market took the biggestpricing hit, coming in at $326,885, down 12.7 per cent from the previous month.

But it wasn't all doom and gloom, according to Sedgewick. Although prices have dropped, they remain stable, and the inventory of properties on the market continues to grow.

"Growth in inventory may create more opportunities for potential buyers, and given the low interest rates, we remain optimistic about market growth as we head into the spring buying season."