Q3 2024 Sales and Prices Eclipse 2007

Hello!

I called the statistics department at the Realtors Association of Edmonton today to confirm what I was readinsg. Year to date, we have eclipsed any real estate sales numbers I could find in Edmonton's History. For example, in 2007, sales numbers were just over 23,000 for the year, with an average price of $329,705 per residence. Fast forward to 2024: In just nine months, residential sales are up over 25,000 year-to-date, with an average sales price exceeding $440,000.

So, what gives? Net migration to our province is almost 600% higher than the average in previous years. I have also been following commercial and business sales, noting that over the past four years, more than 17 high-rise towers in central and downtown Edmonton have sold. We are seeing rapid growth and change, all fed by government policy. Restrictions on migration and immigration have been removed, and more popular markets are not financially sustainable, so people are moving here. 

**** A Special Shout out to Simran and Aman from Kang Oilfield Services, Jon and Stephanie from Armourfloorcoating.com,  and a handful of personal donors. With my companies donation match, we will be sending 56 or so under priviliaged kids to an Oil Kings game at Rogers place this season.*****

On the ground, almost every deal I have completed this year involved multiple offers. When pricing homes, we have been looking to stay within the range of similar sold homes in the area. Inevitably, it seems the homes will sell for $10,000–$30,000 above the listed price in a bid. The number of new and different agents is almost impossible to track. There are over 5,000 agents currently registered with the Edmonton Real Estate Board, as opposed to just over 2,000 registered agents in 2016. 

Where are all these new agents coming from? Since the government oversaw the restructuring of The Real Estate Council of Alberta a few years ago, it appears like getting a license has never been easier. The process now costs $1,200 and requires 150 hours of study, compared to just over $7,000 and 3-9 months of study pre-restructuring. As a result, we have a record number of people practicing with less and less skill, education, and experience—a stark example of rapid change induced by government policy. 

Therefore, if I am looking to sell, I will get more money in less time than at any other time in Edmonton's history. If I am looking to buy, I should have a mortgage pre-approval in hand, have an area selected, and get to know it inside and out so that when I do find something, I can act with confidence.  

Without further ado, here is precisely what home prices and sales have done over the third quarter of 2024. If you are seeing what I am, every asset class has experienced significant growth by every metric, even as we head into the dead of winter—a historically slow time for real estate in Edmonton.  

Cheater notes

• Sales to New Listings Ratio (SNLR): This metric tells us how many homes are sold compared to how many new ones are listed in a given time, usually a month. SNLR is shown as a percentage. A high SNLR, over 60%, indicates a seller's market.
• Average Days on Market (Cum.): DOM is a statistic used to measure how many days a property takes to sell or be taken off the market. It can be applied to a singular house or averaged to a region. When comparing two neighborhoods, a higher DOM suggests that homes in that area take longer to sell, on average.

I have been studying real estate since about 2010, interning, writing reports, spreadsheets, and the like. This is, hands down, the easiest report I have ever done. All sales and prices are up, driven by government policy—which will likely also determine how and when this boom ends. 

A Personal Note

Our kids are happy and healthy! Our eldest son is playing for the Hawks Athletic Club. The kids are learning and growing week by week, supported by a fantastic group of coaches (myself included) and managers. I think Hockey Canada and Hockey Alberta have done a great job in eliminating the B.S. I grew up with. So far, so good. We also have a beautiful and willful little girl, with whom I probably have more in common than I realize, ha ha! 

Christmas pies are coming. I have teamed up with Blakes Bakery again and will be making deliveries on December 19. If I have missed you, please reach out. I would love to visit!

If you have made it this far, thank you for reading. If you would like to be taken off the list, please let me know! I will make that happen immediately. 

Have questions or concerns? I am here! Spring is just around the corner, and I would love to do a better job than ever for you and yours. Don't be a stranger!