Top 3 things you need to know:
- sales slowed down in August, which is typical for most summer months
- total inventory is up 10% from last year (greater supply)
- total sales volume is down 3% from last year (lower demand)
If we go back to our Economics lessons, we know that either greater supply or lower demand in and of themselves cause prices to decrease. We are seeing BOTH greater supply AND lower demand, so the effects on prices are expected to be more dramatic than if we were dealing with just one or the other.
While I'm not a big fan of "average" prices on a monthly scale, we are consistently seeing condo prices down 4-5% since 2016, and single family home prices are the same or slightly less since 2016.
Here's what you need to remember:
- many sellers want to "break even" on their investments. The market right now is not supporting that for many, so a balance of your monthly cost versus
- days on market is going to go up. The number shown by the statistics does not take into account regular practice of many agents of "re-listing" properties once they hit 60 days on market, or the unfortunate habit of sellers to try to get a different diagnosis by agent swapping.
- what works to sell houses is: best marketing, best location AND not only the best price but an UNDENIABLE price - buyers need to be able to hedge against future drops. If you're at the same price as everything around you, you may be waiting quite some time to sell.
Cheerful I know!! Let's not even start talking about mortgage rate increases or tax changes for now.
Questions? I'm here to help!
Inventory and average sales price hold month over month
Edmonton, September 5, 2017: Month over month, unit sales volume was flat or down across all categories, which is typical for the month of August. Average prices for residential properties in the Edmonton Census Metropolitan Area (CMA) in August 2017 were down 2.66% compared to July 2017, but were up 0.78% relative to August 2016.
The number of all residential units reported sold was 1,542. This represents a month-over-month decrease of 4.93%, but only a year-over-year decrease of 2.03%. The number of single family detached units sold was 930. This represents a decrease of 7.28% compared to July 2017 and a decrease of 1.38% compared to August 2016. It was a softer month for condominium sales with 398 reported, which is down 4.10% month over month and down 10.36% year over year. Duplexes and rowhouses continue to perform well with 184 unit sales in August 2017, which was up 1.66% compared to July 2017 and up 19.48% compared to August 2016.Full report is on the REALTORS® Association of Edmonton website.