The Sherwood Park real estate market is settling into a more balanced state. While the benchmark home price continued to rise, sold prices fell slightly on a monthly basis but remain up over 7% year over year. On the negative side, inventories continued to increase across the board.
Out-of-province buyers fuel sales activity in Sherwood Park
Located in Strathcona County, Sherwood Park has a population of over 65,000 people. The city is part of Alberta’s Industrial Heartland. This region is home to Canada’s largest cluster of hydrocarbon refineries. The city’s Refinery Row features some of the largest industrial complexes in Western Canada.
High-end real estate sales are fueled by out-of-province buyers, who recognize that Alberta real estate offers exceptional value compared to other parts of Canada. In February, the average price of single-family detached homes in Sherwood Park Alberta was $503,000 – higher than the $465,800 mark from last year. Sales were also fueled by pent-up demand and low interest rates.
Although interest rates continue to rise, prices remain reasonable and affordability is a key feature of this market. The province is also a popular choice among young families and young professionals, as the home price is affordable and features are appealing. This allows people to purchase a home without years of saving for a down payment.
Since January of this year, sales activity in Alberta real estate have soared. The economy is rebounding due to a healthy oil price. The housing market is tight, with just 2.77 months of inventory. Despite this, home sales in Alberta are up by more than 20% year-over-year.
Alberta’s gas price is not at a high enough level to justify the current price. As a result, the province’s average price is lower than its national average. The province’s oil and gas revenue is now projected to reach $315 million in the 2015-16 fiscal year, which is an 11-year low.
Demand for single-family homes is outstripping supply
The demand for single-family homes in Sherwood park Alberta is outstripping the supply in the area. According to the Edmonton Realtors Association, February 2021 sales increased by 52 percent over the previous year. The absorption rate in Strathcona County is now 78 per cent, which is much higher than the city of Edmonton’s absorption rate of 29 per cent. As a result, many homes in Sherwood Park are selling fast and are receiving multiple offers.
This short supply is driving prices up and creating an excellent opportunity for second and third-time homebuyers. With low interest rates, these buyers can afford to buy larger homes. For third and fourth-time homebuyers, this can mean thousands of dollars in savings.
The shortage of affordable housing is also increasing the cost of renting a home. The optimal time to rent a home is 2.6 months, compared to 3.2 months in July 2007 and four months in April 2010. Furthermore, the housing affordability in the area has dropped by nearly 10% year over year.
The government has rolled out a series of incentives for first-time homebuyers in an effort to increase the number of homes on the market. These incentives include homebuyer credits, RRSP loans, and first-time homebuyer bonuses. Moreover, some businesses, such as Kia, are even letting people drive their cars for 60 days without paying a single penny.
A single-family home is a single residential building with a single household. The units have private entrances and full street access. This type of housing is the cheapest option for those who want to buy a home without having to share it with a stranger.
Low-interest rates help afford larger homes in Sherwood Park
Low-interest rates in Sherwood Park Alberta are making it easier for more people to purchase larger homes. As of May, the value of homes in the city increased 5.2%. That is much higher than the national average, and it means that more people are able to afford bigger homes.
Price trends in Sherwood Park
If you’re in the market for a new home, you might want to take a look at price trends in Sherwood Park’s real estate market. The benchmark home price in Sherwood Park is currently trending upward. Average sold prices, however, were slightly down from the same 28-day period last year. Inventory levels in Sherwood Park continued to rise.
You can also follow breaking news regarding the real estate market in Sherwood Park by checking out community news reports or Google maps. You can also view real estate listings in Sherwood Park, such as single-family detached homes and attached houses. You can also view townhouse and luxury homes for sale.
The housing market in the Greater Edmonton Area was struggling a few years ago, due in large part to low oil prices. However, this situation has changed with the introduction of COVID-19, which has shifted many buyers’ criteria. For example, many new buyers are looking for more space, finished basements, and yards.
The real estate market in Sherwood Park is highly competitive, despite the fact that it is a growing city. In fact, sales in Sherwood Park in February 2020 were up 52 per cent from last year. The absorption rate for Strathcona County, where Sherwood Park is located, is 78 per cent, which is significantly higher than that of the greater Edmonton market. In January, the median price for a single family home in Sherwood Park was $427,500. According to the Edmonton Realtors Association, there were 254 new multi-family units built in the county in 2020.
While the Edmonton real estate market is becoming increasingly competitive, prices are still relatively high. Edmonton has a strong population and an average price for a single-family detached home is $222,181. However, the city has seen a shortage of apartment-style condominiums, and the price trend of these units is sluggish. The high cost of insurance has also impacted pricing.
Prices for single-family detached homes increased significantly in Sherwood Park last month. While they are still below the high of $465,800 from last year, the average home price in Spruce Grove increased by 1.7 per cent last month. Meanwhile, prices in Stony Plain were lower than last year, with prices at $346,00.