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Cooler prices in July are still up 1.5% from last year


Blog by Sara Kalke | August 4th, 2010


Cooler prices in July are still up 1.5% from last year

Here is the latest news release from the REALTORS® Association of Edmonton. Prices are down, inventory is up and volume of sales is down. A major sign for concern? I don't think so.  Last July was a record month for sales volume, after much pent-up demand was realized with high inventory and buyer optimism. What happened after July? Prices increased about 5% to January this year, and now they're down somewhat, but still up 1.5%.  In a global economy where just about everything fluctuates, these figures are quite small in the long haul, and the good news is that the Edmonton economy is still up from a year ago, in spite of the fact that the global markets seem just about as uncertain.

In any case, the best time to make your move is always the time that works best with your family. If you are investing in revenue properties, now is an awesome time to buy, so long as you realize that real estate is one of the best long-term investments out there - emphasis on long-term! 

Have any questions?  Time to buy or sell? Call me anytime! 780-710-7669.

Happy August everyone!
Sara

And by the way, I'm never too busy for any of your referrals!




Cooler prices in July are still up 1.5% from last year

Edmonton, August 4, 2010: While the summer temperatures rose in July, housing prices cooled and prices for all types of residential properties dipped slightly according to figures released by the REALTORS® Association of Edmonton. Single family dwelling prices slid 3.1% while condo prices were down 1.5% and duplex/rowhouse prices dipped just less than one percent. The all-residential average price dropped just 1.7%.

"The number of homes in the inventory is giving buyers' choice," said Larry Westergard, president of the REALTORS® Association of Edmonton. "As a result many buyers are taking their time and prices are beginning to soften slightly. At the same time, some sellers who have been standing firm have been pushed to discount their initial list price." Less than half of the active listings over 30 days have had a price reduction. However, 93% of July sales sold below the list with about 40% having already taken a price reduction.

Single family homes sold on average* for $378,979 in July; a reduction from the previous month but up 1.5% from what they sold for last year. Condominiums dropped in price slightly in July moving down about 1.5% from June. The average condo price was $240,371 in July. The duplex/rowhouse average price was also down 0.9% to $304,032 and the average residential price (including all types of residential property) was down 1.7% since last month at $329,734.

The large inventory of 8,892 residential properties available at month end dampened both listings and sales. New listings were off 15% from last month and 3.3% from last July. Sales dropped from 1,741 in June to 1,294 in July (a 15% drop). The sales-to-listing ratio was 43.8% (down from June). As you might expect, sales were also slower and the average days-on-market was up 4 at 51 days. "A well presented property with the right price might still attract multiple offers," said Westergard. "Most buyers are receiving the expert advice of their REALTOR® and getting access to day-to-day changes to numbers and sales results. It is critical that sellers remain in contact with their REALTOR® and be prepared to modify the price as the market moves." Residential inventory is expected to follow a seasonal trend and fall through the latter part of the year leading to a more balanced market and price stability.

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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®.