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Edmonton’s housing market remained largely unremarkable for October 2021. Sales and new listings are down from last month, while average home prices have stayed the same. Average home prices in Edmonton are now down 1% from last year, with the average home price being $377,848 for October 2021. That's little change from the $377,554 average price in September 2021, but is down from the $382,003 average from last year’s October 2020.
October 2021 sales numbered 1,866, a slight decrease from the 1,883 sales last month. A big change is in the number of new listings, which is down close to 12% compared to last month. The average days on market for an Edmonton home was 47 days. That's below the 50 days for October 2020 and far below the 65 day average for October 2019, and shows that homes are selling faster this month compared to previous months.
Looking at home categories, single-family detached homes had an average sale price of $450,306 for October 2021. That is a slight decrease from $453,011 last month. Townhouses had an average price of $361,827, a significant gain from $337,236 last month. Condo apartments had an average sale price of $225,449, a slight increase from $224,212 last month.
As a new regulatory tailwind to Edmonton's housing market, the CMHC has recently decreased their standards for insured mortgages. This reverses the increase from last year and drops required credit scores from 680 to 600 and increases GDS and TDS ratio limits to 39% and 44% from 35% and 42%, respectively. This increases potential leverage for home buyers across Canada, especially in cities like Edmonton where average home prices remain under $1 million.
However, the Office of the Superintendent of Financial Institutions (OSFI) and the Ministry of Finance have recently raised the benchmark mortgage stress test rate for both insured and uninsured borrowers from 4.79% to 5.25%, limiting affordability for marginal buyers.
Mortgage rates have also risen from their 2020 lows but have remained stable for the past few months. However, the prospect of tighter monetary policy from the Bank of Canada as early as mid-2022 could lead to increased rates and limit home affordability in Edmonton.
Real estate commissions are the fees that home sellers pay to the seller and buyer real estate agents for their services. In Calgary, the total commission rate is structured as 7% for the first $100,000 of a home’s sale price and 3% on the remaining balance. Seller agents usually get half or 50% of this total commission with buyer agents getting the other half. To calculate your real estate commission for Calgary, see our calculator below. For other cities in Alberta, please visit our Alberta real estate commission calculator page for more information.
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