The numbers explained... June 2012 Edmonton Mrket Stats
Here are the latest statistics from the REALTORS® Association of Edmonton. June sales were strong - I saw and participated in a few multiple offer situations and found many listings were selling quite quickly. However, in a market where homes are sling quickly, it is more important than ever to have the right price and the right marketing for your home in order to avoid it becoming the dreaded "stale" listing which has been on the market long enough that buyers assume there is something wrong with it.
Two things of note I saw this month:
1) For-sale-by-owner sellers seriously botching their chances of getting the most money for their homes. Two sellers of note - both listed their homes at least $10,000 under market value (in my opinion), and when offers came in, they had no idea how to create a bidding war, resulting in a sale price even lower than their original under-market asking price. Fine for my clients, but a REALTOR would not let that happen - we are trained to create a buzz through aggressive marketing, then structure a bidding war so the seller ends up with the most money possible. Sure you moved quickly, but my estimate is those sellers lost out on at least $5,000 each, and yes, that is AFTER commissions. So is the advertising really right when they say "save money, sell by owner"? Nope. Not to mention the added liability and complications if the contracts aren't filled out right, or conditions are not properly waived. Don't get me started there...
2) Very strong activity in the "entry-level" housing market. Sorry to use that term, it is one that I have never liked... But I mean housing under $425,000. With the unexpected changes to the amorozation period insured by CMHC (from 30 years to 25 years), there was a lflurry of activity that again, only REALTORS who are working full time selling houses knew about. Sometimes a market can change drastically in just a week's time - this last week it may have been possible to sell your home much faster, and possibly for a higher price, than in the last several months.
So that's that. Below are the stats from the REALTORS Association.
Little effect on local market anticipated by new mortgage policies
Edmonton, July 4, 2012: At the end of the first half of the year, housing prices in all residential categories are up from the same time last year. On average1, residential prices are 3.2% higher than June of last year. The all-residential average price was $342,014 in June while single-family detached homes sold for $393,471, up 3.7% year-over-year.
“Our market continues to be robust and housing prices are higher than they were last year,” said REALTORS® Association of Edmonton President Doug Singleton. “We expect that, although prices will, as usual, slide gradually over the next six months, they will continue to be higher than they have been in the past two years or the five year average.”
The median price for a single family detached home was up 2.0% year-over-year at $369,900 while the condo median price was up 4.6% at $230,000 as compared to last year. The average price for a condo in the Edmonton area dipped 2.5% since May to $242,720. Duplexes and rowhouses were priced on average about 7% higher than last year at $318,223.
There were 3,211 residential properties listed in June and 1,874 sales and the sales-to-listing ratio was up from 53% in May to 58%. The average days-on-market in June was up two at 51 days. Residential inventory was 7,930 on June 30 or about 4.2 month’s supply; typical for this market. REALTORS® participated in the sale of over $640 million worth of residential property last month and total MLS® activity in the first half of the year is $3.8 billion.
In an unexpected move, the finance minister imposed new policies on residential mortgages for the fourth time in four years. Effective July 9, the maximum amortization period for government-backed mortgages was reduced from 30 to 25 years and purchases over $1 million cannot be guaranteed by CMHC. In addition the amount that homeowners can borrow against the equity in their homes is reduced from 85 to 80 percent.
“These changes are meant to cool the Toronto markets but will have little impact in our stable and affordable market locally,” said Singleton. “Some buyers may push their buying decision forward a bit or have to lower their expectations but their REALTOR® can still present them with plenty of options and housing choice in all price brackets. The limits on equity take-out and million dollar purchases will have negligible effect on the resale housing market.”
Activity (for all residential sales on Edmonton MLS® System)
% Change Y/Y
SFD2 average selling price - month $393,471 1.2% 3.7%
SFD median3 selling price $369,900 -0.03% 2.0%
Condominium average1 selling price $242,720 -2.5% 3.5%
Condominium median selling price $230,000 -0.9% 4.6%
All-residential4 average selling price $342,014 -1.8% 3.2%
All-residential median selling price $325,000 -2.7% 2.4%
# residential listings this month 3,211 -14.3% 0.31%
# residential sales this month 1,874 -5.5% 2.6%
# residential inventory at month end 7,930 -0.06% -5.99%
# Total5 MLS® System sales this month 2,097 -7.5% -3.9%
$ Value residential sales this month $640 Million -7.2% -12.2%
$ Value of total MLS® System sales – month $733 Million -9.7% -2.4%
$ Value of total MLS® System sales - YTD $3.87 Billion 25.9% 15.1%
2 Residential includes SFD, condos and duplex/row houses
3 Single Family Dwelling
4 The middle figure in a list of all sales prices
5 Includes residential, rural and commercial sales
1 Average prices indicate market trends only. They do not reflect actual changes for a particular property, which may vary from house to house and area to area. Prior period figures have been adjusted to include late reported sales and cancellations and therefore reflect a more accurate view of the period than previously reported at month end.