Edmonton’s luxurious market is experiencing a “trickle-up” impact

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Edmonton’s single-family home segment is in a sellers’ market, while other apartment types are more balanced or buyers preferring

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Joel Schlesinger for the Edmonton Journal Luxury properties like the one in Windermere are attracting more interest these days. Luxury properties like the one in Windermere are attracting more interest these days. Photo to file /Postal media

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The Edmonton resale property market had another good month of sales in May, with activity also increasing in the long-suffering luxury segment.

Recent figures from the Realtors Association of Edmonton (RAE) show that sales were up more than 137 percent from May last year – although activity was down about four percent from April.

The lower month-over-month sales, coupled with a 43 percent year-over-year increase in new listings, may have given the market more supply / demand balance last month. Even so, the average price rose more than 13 percent year-on-year to $ 401,390, which is also more than three percent from April this year.

Realtor Paul Gravelle of MaxWell Progressive, also elected chairman of RAE, notes that the single-family home market continues to be driven by the seller’s market, while other apartment types are more balanced or buyers-preferring.

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That growing demand for single-family homes includes the city’s luxury market, including a sale last month in the Southwest for approximately $ 2.9 million.

“There’s a little trickle-up effect,” he notes. The strong activity in the lower and middle price segment has led to a higher demand in higher price ranges.

He points to 36 single-family home sales in May between $ 1 million and $ 1.5 million (although activity declined significantly with prices above $ 1.5 million with just four sales).

Gravelle notes that sales activity is “substantial” even though the market is still about 240 properties over $ 1 million.

Half of these offers are priced below $ 1.5 million, he says. “So if you break it down based on last month’s sales, you have about three months of inventory in that price range.”

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The same price range had a delivery period of five to seven months in previous years, he further notes.

According to broker Jeremy Amyotte of the Dickson Amyotte Group at Sotheby’s International Realty, sales activity in the luxury segment is about five times as high as it was in May 2020.

“That number isn’t that impressive considering we were banned from COVID in early May last year.”

But compared to more active years like 2014 – “one of the better years to sell” – the numbers from last month seem all the more impressive, he says.

“There were 18 sales of $ 1 million or more in 2014,” compared to 40 sales last May.

“Buyer activity and buyer confidence are the best we’ve seen in the luxury market,” says the agent who specializes in selling luxury properties.

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He found a “trickle-up effect” in which luxury sales are dependent on new buyers who, in turn, need new buyers to enter the market in order to be able to sell their home.

Windemere – which is one of the most expensive homes at more than $ 6 million – is attracting a lot of attention from these buyers, he adds.

Amyotte points out a house in the community that was recently sold for $ 2.5 million. Although it took several months for the property to sell, the long time in the market was more of a factor behind its listing in winter – a traditionally slow time of year, especially for luxury homes.

Now the demand is so big, Amyotte says he gets verbal inquiries about homes for sale before they hit the market.

“Now we have several buyers trying to get the sellers to sell,” says Amyotte.

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