Hot property. That’s the term that could be used to describe the Edmonton housing market, which is poised to break the residential sales mark it set just last year.

With steaming sales numbers from earlier this year, residential property sales are one month ahead of last year’s pace.

As of the end of September, 14,249 single-family homes, condominium units and duplexes or rowhouses have changed hands this year, compared to 12,961 in the same period last year, according to the latest Edmonton Real Estate Board (EREB) figures.

EREB officials expect to easily surpass last year’s sales total of 16,277 units sold and reach somewhere between 17,000 and 17,500 units by the end of this year, barring any unexpected market changes.

Meanwhile, despite the fact that the market is entering its quiet season as Christmas slowly approaches, the condo sector shows no signs of easing up.

Condo prices rose 4.4 per cent to $142,536, establishing a new all-time record for the region’s average condo price, said EREB president Bill Briggs.

“In a lot of cases, it is lifestyle that is driving this,” said Briggs.

Baby boomers who want a maintenance-free way of life without worrying about cutting the lawn, snow removal and traditional home upkeep are a large part of the reason for the boost in home sales, added real estate agent Jim Kulak with Century 21.

“It’s also first-time home buyers who find condominiums more affordable,” he said.

Broker Connie Kennedy, who specializes in condos, agreed that lifestyle is a key draw for condominium buyers. But it’s also security, privacy and location, she added, pointing to the large amount of new product that has come onto the market in central Edmonton, which includes the city’s downtown.

“They love it (the lifestyle) and when they move in (downtown), they love to be close to the bike trails, to the shopping, the arts district and they don’t have to take their car to go somewhere if they don’t want to,” said Kennedy, with Re/Max Real Estate’s Edmonton central branch.

Some buyers, she added, end up selling their second car once they move because they no longer need it.

Also, she said there are a lot of people arriving from outside the province or the country who decide that a condo makes more sense by allowing then to enjoy the season without the need to shovel snow.

In 2000, the average condo price came in at $85,699, rising to $112,560 in 2002 and $128,093 last year.

But while condos are moving – and EREB numbers don’t include the new projects brought online in which developers sell directly to buyers – single-family dwellings sales slipped slightly.

The average cost for a single- family home in EREB territory dipped 1.2 per cent to $202,518.

However, since Edmonton hit the $200,000 level earlier this year, it has continuously remained above that figure.

“It is not unusual for prices to trend downward slightly at this time of year,” said Briggs. “But the market retains its value with lots of choice for buyers. There is a good inventory of homes, days on the market is unchanged – at about 43 – and sales are still strong.”

At the end of September, there were 4,693 homes available on the Multiple Listing Service, which is 75 less than last month and 100 less than a year ago.

Sales-to-listing ratios soared from 59 per cent last month to 78 per cent in September, to match the sales-to-listing ratios posted in September 2001 and 2002.

Briggs attributes the overall strong market to low interest rates, which make buying more attractive than renting, and a strong Edmonton economy that is bolstered by multi-year massive oilsands development projects.

While rising interest rates could put a damper on strong home sales, Briggs said it would be guesswork to say at what point higher rates would start to damage sales numbers.

Further, he said the lower sales numbers for single-family homes are not necessarily a negative.

“We remain very positive about the real-estate market in Edmonton. It’s probably just returning to a little bit more of a traditional marketplace. We’ve been spoiled the last few years,” said Briggs.

(Laura Severs can be reached at laura@businessedge.ca)