First off, Happy New Year to you too.
The 2024 Real Estate market in Edmonton (and area) went out with a bang, while January is already heating up like embers and gasoline. There were a total of 1,428 residential unit sales in the Greater Edmonton Area (GEA) real estate market during December 2024, 17.2% higher than December 2023. New residential listings amounted to 1,367 and overall inventory in the GEA decreased 22.5% month-over-month and 24.6% year-over-year. This folks, is significant. With the combination of record low inventory and higher than average sales, we continue to see an increase in benchmark prices (about 12% respectively) since 2023.
My early year predictions tell me that we are heading into one of the most competitive real estate markets in Edmonton, perhaps even more competitive than post covid sales. This is probable because of lower inventory with plenty of buyers looking to cash in on Edmonton's still affordable housing market. Of course, should we see an influx of new listings that meet the demand of current buying trends, this all could change.
As a buyer going into the market, here are some tips I can offer you to help you find success when navigating the landscape:
-
Get pre-approved. Multiple offers may mean some buyers are offering cash (or risk making offers with no financing condition, which I do not recommend). If you are pre-approved, your pre-approval letter, along with a tighter condition window to complete financing can help to make your offer more attractive.
-
If you have a house to sell, sell it first. Offers with a 'subject to sale of buyer's property' are not in sellers best interest and have a low chance of acceptance. When accepted, most sellers write in a clause that would require the buyer to remove this condition and have the deal firm in the event of another offer coming to the table. This leaves the buyer on very shaky ground. Sell your home first.
-
Be patient. This is a market where you may be writing offers on several properties before you get one that sticks.
-
Have an open mind. I am not advising you to buy something that doesn’t work for you, or that you don’t love. But you may have to be willing to be flexible.
-
Do not shop at the top of your budget. In competitive markets, properties may sell well over asking pricing. This is why I may suggest looking $20,000-30,000 below your budget with the understanding that you may have to offer over listing price to remain competitive with other offers.
-
Find a realtor who is comfortable negotiating under these market conditions. We can call them ‘tactics’ however what matters the most in our industry is the ability to advocate for our clients while maintaining positive relationships with agents representing sellers. We have found professional business practices are absolutely key in multiple offer situations.
Darryl
