The latest news is out from the Realtors Association of Edmonton - which actually contains some good news, in spite of the doom and gloom we seem to be hearing a lot of lately (full news release below). New mortgage rates and mortgage qualification rules seem to be causing an early slowdown to a usually hot late spring/early summer market. Prices, however, are still up about 5% over the same time last year, but that figure is down 5% from just a few months ago. The key for buyers and sellers? Now is still a great time to buy or sell a home, with mortgage rates still near record lows (and threatening to go higher, so get your pre-approval sooner than later - they are usually good for a few months from when you get pre-approved - talk to your mortgage broker for more information). If you're following the inventory numbers, the current number of listings in greater Edmonton on MLS is 8,591 - just over double the number at the bottom of the year.
With more selection available, buying is much easier than it was at the beginning of the year, and sellers need to have a strong marketing plan and professional advice at their side (check out my 25-Point Action Plan at http://www.sarakalke.com/25-PointActionPlan.ubr.
Thinking of buying or selling? Know someone who is? Call me anytime at (780) 710-7669.
REALTORS® face relaxed housing market with stable pricing
The housing market was relaxed in May with slightly lower sales than last year and prices generally stable. Despite the sales drop, the current sales figures compare favourably with levels set in 2008.
“Financial incentives, changes to mortgage qualifying rules and the threat of increasing mortgage rates caused the local market to peak a little earlier this year,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Many buyers exercised their options in April leaving the customer base a little leaner in May.”
Single family residences in the Edmonton area rose in price by less than one percent and sold on average* for $390,583 in May. Condominium prices dipped just two percent to an average of $248,526. Duplex and rowhouse prices of $320,204 were down 2.3% from last month. Overall, the average residential price was up a quarter of a percent to $340,192.
There were 3,670 residential listings in May with residential sales of 1,682 properties resulting in a sales-to-listing ratio of 46%. The average time to sell a home was 44 days (the same as April) and inventory at month end was 8,780 residential units (as compared to 8,056 in April). At current sales levels the inventory will last for over five months.
“Buyers, sellers and REALTORS® can all relax and enter a sales transaction without pressure,” said Westergard. “That does not mean that you can delay making or accepting an attractive offer because 50-60 homes sell each day and you would hate to see your dream home snapped up by someone just a little more eager to live there.” He emphasized that the REALTOR® can be a calming influence in a sale but can also be relied upon to provide expert advice and coaching.
There were 3,174 REALTORS® operating in the Edmonton area at the end of May.
|May 2010 activity||Record for
|% change from
|Total MLS® System sales this month||1,890||-24.20%|
|Value of total MLS® System sales - month||$650 million||-20.50%|
|Value of total MLS® System sales - year||$2.8 billion||8.70%|
|Residential¹ sales this month||1,682||-25.80%|
|Residential average price||$340,192||4.25%|
|SFD² average selling price - month||$390,583||6.54%|
|SFD median³ selling price||$363,000||5.83%|
|Condo average selling price||$248,526||1.96%|
¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact your local REALTOR®.
Any information herein is not warranted - I am not a real estate appraiser or a lawyer, I'm just putting my thoughts out there to give you my perspective on the market. I recommend that you consult a lawyer, appraiser, accountant, real estate professional, etc. before making any large financial decision.