The Realtors Association of Edmonton noted in its monthly press release that real estate sales and prices are on the rise in Edmonton. While this is true, it is difficult to say how long this will continue. Our thoughts are that the increases are due to seasonality (prices and sales almost always rise in the spring) and historically low interest rates. So when things slow down later this summer, how much slower will it get? Fixed rate mortgage rates have already started to increase - if rates continue to increase, and demand seasonally slows there is potential for an even slower market this fall than last fall. On the other hand, new listings and inventory are not close to what they were last year:

As we like to remind everyone, there is a close relationship between inventory and prices:

Looking at absorption, the Realtors Association indicated that 3.4 months is typical for the current sales volumes. While I'm not sure what typical is, it is cetain that absorption is much lower than it has been in a long time: 

If you are thinking of buying, make sure you ask for a rate hold from your lender or broker and get it for as long as you can. You never know - there could be some good deals this fall, especially if you have a great rate reserved!