EDMONTON – Homes listed for sale in the Edmonton area are nearing record levels while residential sales fell 37 per cent in June from last year.
But the average price of a single-family home rose nearly six per cent while the average price of all residences increased by two per cent year-over-year, according to MLS figures released Monday by the Realtors Association of Edmonton.
Association president Larry Westergard acknowledged the market was not responding to normal supply and demand pressures.
“The fact that it’s holding its value, and over the last six months has been increasing in value, shows the consumer still feels the Edmonton market has still got a lot of value in the housing,” said association president Larry Westergard.
The residential average price in June was $335,397, up 2.03 per cent from June 2009.
Single-family homes sold for an average of $391,497, up 5.72 per cent from a year earlier, while the median price for single-family dwellings was $359,000, up 2.57 per cent year-over-year.
Condominium average selling prices fell 2.05 per cent since June 2009 to $242,644.
Westergard predicted a “gradual mellowing of prices in the second half of the year.”
There were 1,539 residential sales in the month, down 37.1 per cent from June 2009.
There were 9,406 homes in MLS inventory at the end of June – close to the record set in September 2007 of 9,913 homes on MLS.
“The biggest pressure on our market right now is inventory,” Westergard said.
“With just over 7,160 units listed in May and June alone, we’re seeing because of the slower number of sales a bulge in inventory right now.”
Westergard blamed the glut on slow sales.
“There just wasn’t the absorption rate that we normally see.”