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November Market Summary: Sales Up, Prices Down


Blog by Sara Kalke | December 6th, 2010


Edmonton's real estate market in November could use a new catch phrase.  Instead of "location, location, location", November was all about "price, price, price".  Buyer confidence was back, with low prices, low mortgage rates, and plenty of selection.  The downward trend in prices shows that buyers are buying with one thing in mind: getting a deal.  With prices softening, it shows that buyers are going for low price over upgrades and extras.  My advice to buyers?  Keep your eyes peeled for those "diamonds in the rough" - homes that are well-maintained, upgraded, and most of all, have a great location!!  A small extra investment now will often bring greater returns in the future.  To homeowners, my advice is the same as always: enjoy your property while you live there, maintain it and care for it, and call me anytime if you have questions on trendy upgrades, and how to get the most out of any renovation dollars you are going to spend.

Have a great month and good luck with those Christmas shopping lists!

-Sara
780-710-7669

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


 

Housing prices soften as sales bump up

Edmonton, December 2, 2010: The average price of a single family detached property in the Edmonton area continued to soften in November. According to the REALTORS® Association of Edmonton, at $362,657, the average* SFD price was half a percent lower in November than it was in October. Compared to a year ago the price was down significantly by 2.5%. November condo prices also took one of the biggest drops this year with the average price down 2% to $229,603 month-over-month and just under 3% year-over-year. Average duplex/rowhouse prices of $318,605 went up over the previous month (6%) and previous year (10.6%).

Despite the softening of prices in specific categories, overall the market remained stable with the all-residential average price of $319,479 (up 0.65%) from October and up a third of a percent from last year. There were 1,220 residential sales on the Edmonton Multiple Listing Service® in November as compared to 1,177 in October. Listings were down from 2,267 in October to 1,860 in November. This resulted in a drop in the available inventory from 7,689 to 6,982 residential units; still considered high for this market.

“Softening prices, a dip in interest rates, increasing sales nationally and excess local inventory all contributed to a month-over-month sales bump,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Housing affordability in Edmonton is lower than the national average and economic growth in Alberta is expected to exceed other parts of the country.”

The sales-to-listing ratio in Edmonton and area was 66% and the average days-on-market was down from 60 to 59 days. Taken together the two figures indicate that sellers must exercise patience as they wait for a buyer. They should be encouraged to learn that there was over $400 million worth of real estate sold through the local MLS® System in November.

“It seems that Edmonton is out of phase with the rest of the country and is lagging slightly in comparison to other major markets,” said Westergard. “All the indicators suggest that an increase in real estate sales is right around the corner. Your REALTOR® will continue to monitor the local market and provide appropriate advice for each specific property.”

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Highlights of MLS® System activity

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®.