"We've seen a decline in condo sales due to the amount of rental properties on the market," said Duane Ritter, a real estate agent with Re/Max.
"There's a lot of rental projects and less people to fill them so we've seen a gradual decrease, but the market is still in strong shape. There have been no price drops and condo construction is going up. We're still waiting to see how the government budget is going to affect the markets."
New figures from the Realtors Association of Edmonton showed that condo sales were down 10 per cent over May 2015, at 510, while residential sales were down 13 per cent compared to this time last year.
However, residential sales were up 12 per cent compared to April 2015, a strong sign that sales are picking up as prices remain steady and interest rates remain low.
Duplex and rowhouse sales continue to follow a strong trend of growth, at four per cent, and with increased sales expected to grow over the summer months, Ritter said that confidence in the market is growing as things begin to stabilize.
“The market seems to be going along with increasing inventory but steady sales at this time so there’s no major changes that we anticipate,” he said.
Still, the impact of the provincial budget has yet to be factored into the equation as many are waiting on decisions to be made that concern the provincial’s hobbled energy market. Still, optimism is prevailing.
“We are still seeing multiple offers in popular price brackets," said Geneva Tetreault, president of the Realtors Association of Edmonton.
"The fact that we haven’t seen a decline in prices is giving buyers more assurance.They are venturing back into the market with the feeling that prices won’t plummet any time soon.”
New figures showed the average price of a home was $381,111, up 2.5 per cent from May 2014. What’s more, single-family dwellings sold for an average of $451,312, up three per cent from May 2014, while condos levelled at $256,143, up two per cent.
A plethora of new property builds for rent in Edmonton has impacted condo sales for the month of May, while inventory remains steady, according to an industry vet and analyst.