The number of homes in Edmonton selling for over $1 million is up significantly since 2011.
64 properties over $1 million have been sold in Edmonton already in 2012, compared to 66 in all of 2011. The luxury properties usually take over a year to sell but are now spending an average of 72 days on the market, down from 78 days last year.
The Realtors Association of Edmonton President Doug Singleton is very happy with the market sales so far this year.
“We’ve had the opportunity to sell 64 homes exceeding a million dollars this year, which is a very good pace for us,” says Singleton.
“So that’s some nice growth in that segment,” he added.
The last time sales were this good was before the recession in 2008, so this is a five year high for homes priced over $1 million, says Sally Munro of Century 21 Platinum Realty.
“We saw this in 2006 and 2007 and it’s taken us a while to get back to those levels,” says Munro.
“Currently that category is outperforming where it has been for the past 5 years,” adds Singleton.
The market is strong and Singleton believes that is making people want to buy even more expensive homes.
“I think the million dollar homes are being sold because there’s confidence in the market place. We’ve got great interest rates and I think that’s driving those market places,” says Singleton.
“A lot of it is fueled by interest rates. As of this morning, a five year term is 2.99 percent a 10 year term is 3.76 percent. We haven’t seen these types of interest rates in Canada, ever,” explains Munro.
There are currently 121 homes in Edmonton for sale listed at over $1 million, and on average, they’re on the market for just over two months. The interest rates make it more affordable for people to get their hands on luxury homes.
“Mortgage rates make it far more achievable. A million dollars today is like 500-thousand was years ago,” says Munro.
Even though the interest rates are strong, Singleton points out Edmonton is also strong.
“I think we’ve got some good migration, good employment within the city…looking for good things,” Singleton points out.
The majority of the homes Munro has sold for many years are what she calls “luxury high-end” homes. She expects the market for these kind of homes to see a slow and steady growth due to people’s changing tastes.
“More and more people are exposed to finer things, people are working harder and want far more luxury items,” says Munro.
“Just because Edmonton is in Alberta doesn’t mean that we don’t have exquisite taste,” she also points out.
Cathy Kilduff is one of those people. Her million dollar home is currently on the market and she’s optimistic about its sale.
“Well my home has been on the market for about two weeks, two and a half weeks. So, it’s still new to the market. There’s been some interest, quite a bit of interest actually,” reveals Kilduff.
Kilduff thinks the prospects for selling her home are strong due to the strong market.
“Hearing that news does give me some very positive hope that my home will sell within the new few months… I’m happy that homes are selling for the million dollars plus of course because my home is up in that range as well.”
“Today the demand is luxury kitchens, high end cabinets, high end appliances,” says Munro about the high priced homes.
The number of single family homes sold in the $450,000 or higher range is up about 26% in 2012 as compared to the past five years. This trend is expected to continue for the rest of the year. Homes in this range also sold faster this year than in previous years. Days-on-market was the lowest it has been in five years at just 40 days in 2012 and the spread between the list and sold prices was lower at 2.3%.
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