Townhomes are hot, and the Southwest sub-market accounted for the lion’s share of sales, according to Zonda Urban’s Q3-2023 Multi-Family Take for Edmonton.
Townhomes made up 85 per cent of total sales for the quarter, the second-highest amount on record. The average price of a new townhome in Edmonton was $372,608 this quarter, marking a 1.3 per cent increase since Q2. The Southwest was the most active area of the city in Q3, with the sub-market garnering 54 per cent of total sales for the region — an increase of eight percent above the historical average.
The Southwest sub-market produced more than 80 total sales for four consecutive quarters. By comparison, the Southeast sub-market last saw over 80 sales in the second quarter of 2021, the only sub-market outside the Southwest to do so. Notably, sales declined similarly in the Northeast, St. Albert, and Sherwood Park sub-markets by 64, 70, and 67 per cent, respectively.
Prices are up by 4.8 per cent for wood-frame condominiums since Q2, rising to an average price of $415,853 for Q3.
Edmonton condo sales volumes hit all-time low
In the third quarter of 2023, Edmonton’s condominium sales volume fell to its lowest recorded level. By the end of the third quarter, there were just 116 newly released and unsold condominiums in the city, a 95 per cent decrease from the 2,550 released and unsold condominiums recorded at the same time five years prior.
Multi-family sales have remained relatively steady since last quarter, down by only three per cent. However, the 199 total sales for Q3-2023 represents an increase of 140 per cent compared with the 83 sales from Q3-2022.
Incentives for multi-family buyers continue to dwindle
The number and value of incentives developers offer in Edmonton’s new multi-family home market have decreased. Only five out of the 50 active projects offered buyer incentives. Some incentives in the third quarter included a $5,000 rebate with purchase, a $3,000 interior design credit, a $3,321 home appliance credit, and a $5,000 credit on all penthouse units.
