A record-breaking year.
What an amazing year of triumph. We started off strong with prices growing at a high of 8% for the first half of the year and finished off with a modest 3% growth.
2015 has come to an end, and we thought it's important for us to look back and see what we have accomplished as a whole.
When the start of the oil industry correction, many has experienced challenges in their lives. Many people were worried about the significance of its impact on Edmonton's real estate market. While it may have been difficult, the real estate market in Edmonton was resilient to the changes in the Canadian economy.
In Q4 2015, average sold price dropped slightly from Q3, down $10,000. The reduction is too small to be considered a result of change in the economy. Average sold-to-listing-price ratio was at 96.8%, still in the range of a balanced or light buyer's market.
Macro-economics in play.
There was a number of reasons. The real estate prices across Canada benefited from the historically low interest rate, low Canadian dollar, growing population largely from Asia, and housing shortage. Chinese investors helped by investing billions of dollars in the Canadian real estate and economy. It help boosted the construction industry across Canada by creating jobs, increased spendings in the retail sector and tourism, and contributed more tax revenue for the Canadian government.
When we focus on Edmonton, the weather played an important role. An early spring helped us get a quick start to the peak season of real estate transactions. Edmontonians know that spring/summer/fall are the best periods to move. When many large oil companies announced large scale layoffs back in March/April, many folks moved from Calgary to Edmonton to start their new jobs. At 2% annual compound population growth rate and over 50% growth rate for children, we are still one of the fastest growing cities in Canada. Unemployment rate is sitting at 6.1% as of November, still one of the lowest in Canada. Throughout the year, new housing start and pre-owned housing for sale stayed relatively balanced with demand. Despite Alberta was most impacted by the oil crisis in Canada, the Edmonton real estate pricing stayed relatively stable, ending the year with a modest 3% growth rate.
Q4 2015 home sold volumes were down 33% from Q3, at 2,493 homes sold. This is due to the nature of the winter climate in Edmonton and is in line from previous years. According to our analysis, at the current rate of home sold, there's three and half months of available inventory on the market before its depletion. With less available inventory, the Edmonton market will stay relatively balanced with the reduced demand in the winter. A home will stay on the market for an average of 58 days. It's still within the average range when compared to historical trend.
Statistic were taken for condominiums and single family homes between a hundred and fifty thousand and two million Canadian.
An eary summer and strong tourism.
This summer, Edmonton was featured by the National Geographic as one of the top 10 best cities in the world to visit in the summer. This didn't come surprising to many of us. Edmonton is one of the cities that gets the most sun in Canada. With more than 255 days of clear blue sky and bright sun each year, it's no wonder why people love to attend the hundreds of summer events happening in town. Each year, millions of people visited the events across the city.
Edmontonians are hard-working, down to earth folks. In the winter, we work through cold and snowy winter conditions. As a reward, our city and our province still has one of the highest median household incomes in Canada, at just under $100,000. With our housing price still being one of the most affordable ones in the country, low taxes, free healthcare, and little to no traffic jams, we still believe it's the best city to live in Canada.
In Q4 2015, over 36% of buyers bought a home between the range of three hundred thousand and four hundred thousand Canadian. 34% of buyers bought a home between the range of a hundred and fifty thousand and three hundred thousand Canadian. and 31% of buyers bought a home between the range of four hundred thousand and seven hundred thousand Canadian.
Edmonton, still the best city in Canada.
Edmontonians, you are living in one of the best cities in Canada. Just reflect a little on all the amazing things you have done this year to overcome challenges, provide care to your family, and created happiness and smiles. You have taken your family to the dog parks, bike rides along the river valley, bbq in the park, many shopping days, and cultural events across the city. You have accomplished a lot for your family and for the community this year.
2016 will be an exciting year for all of us. We have an exciting year planned for 2016. We will be launching many new products and services to better meet the needs of our clients and customers. So please stay tuned to hear from us. Have a happy new year!