In the midst of a sweltering July, the real estate scene in the Greater Edmonton Area (GEA) not only sizzled but also showcased significant growth. This month, the area witnessed a 3.5% month-over-month increase in residential unit sales, totaling 2,941 transactions. This marks a robust 27.1% rise compared to July 2023. The listings followed suit with 3,729 new residential properties hitting the market, up by 2.9% from June and a notable 13.2% from the previous year. Despite the uptick in listings and sales, overall inventory dipped by 1.4% from last month and stands 15.1% lower than last July.

Breaking down the numbers, detached homes led the charge with 1,708 units sold, an increase of 2.8% from June and a substantial 23.5% from last year. On the flip side, semi-detached homes saw a slight decline of 6.6% in sales from the previous month but managed a yearly gain of 13.0%. Row/townhouses experienced a healthy boost with sales up by 4.7% from June and a remarkable 52.0% year-over-year increase. Apartment condominiums, although fluctuating slightly, reported an 11.7% month-over-month increase and a 32.3% jump over the previous year.

Price-wise, the total average price of residential properties edged up to $440,466, a modest 0.4% rise from June and 7.7% from last year. Detached homes commanded an average price of $552,031, reflecting a 2.3% increase from June and a 9.8% increase year-over-year. Semi-detached units, while dipping 3.6% in price from June, showed a year-over-year price increase of 7.4%, closing at an average of $406,906. Row/townhouses nudged up to $292,072, a 0.7% rise from June and a significant 10.6% from last year. Apartment condominiums saw a slight price decrease of 3.4% from June but are still up 4.9% over the previous year, averaging $204,315.

According to the MLS® Home Price Index (HPI), the composite benchmark price in the GEA slightly decreased by 0.4% from June to $406,600, but is up by 7.1% compared to July 2023.

Melanie Boles, 2024 Board Chair of the REALTORS® Association of Edmonton, commented on the market dynamics, stating, “Despite the July heatwave, the real estate market experienced an unexpected surge in buyer activity. While we typically see a slowdown after the busy spring months, this July proved different, thanks to continued demand and limited supply.”

In terms of how quickly homes are selling, detached homes averaged 32 days on the market, showing a slight increase. Semi-detached homes sold faster, averaging 27 days, while row/townhouses took a bit longer at 31 days. Apartment condominiums lingered on the market for an average of 43 days. The overall average days on market for all residential listings increased slightly to 33 days, although this is still quicker than last year by 12 days.

This snapshot of Edmonton’s real estate market in July 2024 paints a picture of a market that, despite the seasonal heat, continues to demonstrate vigorous activity and healthy appreciation in property values.

Data and Information provided by the REALTORS® Association of Edmonton

If you are in the market for a new home in Edmonton, there are a variety of options available to you. One option that is becoming increasingly popular is buying a brand new build. While some people may prefer the charm and character of an older home, there are many compelling reasons to consider a new build. In this blog post, we will explore some of the benefits of buying a new building in Edmonton.

Customization

One of the biggest advantages of buying a new build is the ability to customize your home to your exact specifications. When you purchase an older home, you are often limited by the existing layout and design. With a new build, you can work with the builder to create a home that meets your specific needs and preferences. From the layout of the rooms to the finishes and fixtures, you have control over every aspect of your new home.

Energy Efficiency

Another benefit of buying a new build is the energy efficiency that comes with modern construction standards. New homes are built with the latest energy-efficient technologies, including insulation, windows, and appliances. This can lead to significant savings on your utility bills over time, as well as a reduced carbon footprint.

Warranty

When you buy a new build, you will receive a warranty from the builder. This can provide peace of mind knowing that any defects or issues that arise within the first few years will be covered. You can learn more about Alberta New Home Warranty Program here. This is not always the case with older homes, where the buyer is often responsible for any repairs or maintenance that are needed.

Low Maintenance

New builds require less maintenance than older homes. With a new build, you don’t have to worry about replacing the roof, upgrading the electrical system, or dealing with other costly repairs that may come with an older home. This can save you time and money in the long run, and allow you to focus on enjoying your new home.

Community

New builds are often part of a larger community development, which can provide a sense of community and belonging. Many new developments include amenities such as parks, playgrounds, and community centers. This can be especially appealing for families with young children or anyone who is looking for a tight-knit community.

Buying a brand-new home in Edmonton can be an excellent investment for many reasons. Our team has expertise and relationships with numerous builders across the Edmonton region, from spec homes (ready to move into) to custom options, from starter to luxury, and everything in between – we have you covered. The best thing to do is reach out and start discussing your Edmonton home-buying goals.

Buying a home in the Edmonton area is a significant milestone, and saving for a down payment is a critical step. Canadians/Edmontonians have several saving options, each with its benefits and considerations. Here’s a breakdown of three popular choices: the First Home Savings Account (FHSA), Home Buyers’ Plan (HBP aka RRSP), and a Tax-Free Savings Account (TFSA).

First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) in Canada is a tax-advantaged savings account designed to help individuals save for their first home. This account aims to make homeownership more accessible by providing significant tax benefits for first-time homebuyers.

Pros:

• Contributions are tax-deductible, and withdrawals (including investment income) for qualifying first home purchases are tax-free.
• Offers flexibility and significant tax advantages for first-time homebuyers.

Cons:

• The annual contribution limit is capped. The annual contribution limit for the First Home Savings Account (FHSA) has been $8,000 in recent years, and there is a lifetime contribution limit of $40,000.
• Specifically designed for first-time homebuyers, limiting its use for others.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) is a program in Canada that allows individuals to withdraw from their Registered Retirement Savings Plans (RRSPs) to buy or build a first home, without immediate tax penalties.

Pros:

• Allows you to borrow up to $35,000 from your RRSPs to buy or build a first home, interest-free.
• A repayment period of 15 years gives ample time to return the funds.

Cons:

• Requires repayment, otherwise, it is added to your taxable income.
• Using RRSP funds can interrupt the growth of your retirement savings.

Tax-Free Savings Account (TFSA)

A Tax-Free Savings Account (TFSA) is a flexible investment account in Canada that allows contributions to grow tax-free. Withdrawals can be made at any time for any purpose, also tax-free. It’s available to individuals 18 and older with a valid Social Insurance Number. While contributions are not tax-deductible, the account offers significant tax advantages, especially for long-term savings and investment growth.

Pros:

• Contributions aren’t tax-deductible, but investment growth and withdrawals are tax-free.
• Offers flexibility; funds can be withdrawn anytime for any purpose, including a home purchase.

Cons:

• Annual contribution limits may restrict how much you can save over time.
• Doesn’t offer the same direct home-buying incentives as FHSA or HBP.

When considering these options, think about your timeline for buying an Edmonton home, your current and future tax situation, and how much you can save. Consulting with a financial advisor and an Edmonton mortgage broker can also provide personalized advice tailored to your specific circumstances. Whichever path you choose, start early and review your strategy regularly to keep your home-buying dream on track.

Did you know we offer complimentary Home Buyer consultations to talk about your unique goals and desires? Based on where you are at in the process, we can also connect you to top-tier professionals who can further guide you in getting ready to become a homeowner.