Contributing to this is the usual spring market (because who wants to move in January unless they have to?!!), low mortgage rates (that just dropped again by the way), and tempered optimism with low jobless rates, inmigration and positive predictions from our friends at the Real Estate Investment Network (aka REIN).
Is this the peak for the year? Well, maybe. If it is a "peak", it's a slight one, and with low interest rates, we are at a very good time to make a move - there's the magical combination of lots of buyers and lots of selection... Just promise me two things: 1) you'll save a little extra in case (and by in case, I mean when) interest rates increase, 2) don't go nuts and buy the most expensive house you can, or hedge your life savings on real estate investing. My bet is real estate will be slow and steady for the next year or so, keep back up with inflation, and if we're lucky, increase by a little more than inflation every year for the next few years. But that's just a bet. And you bet I'm squirreling a little extra of what I make onto my big fat first time mortgage, so if inflation rates increase dramatically, we'll be able to refinance our mortgage in a few years.
If you're thinking of buying or selling, have questions about real estate, or just want to say hi, call me anytime: 780-710-7669.
Have a great month!
Local Housing Market in one word: Up
Edmonton, June 2, 2011: The local real estate market is looking up according to the current statistics released by the REALTORS® Association of Edmonton. The average residential sales price is up, the price of a single family detached home or a condo is up, number of sales is up and inventory is up over the previous month.
“Local market housing sales this year are tracking as we forecast in January,” explained REALTORS® Association of Edmonton President Chris Mooney. “Historically for the month of May, the days-on-market (50 days) is at the second lowest point in four years while the sales-to-listing ratio at 53% is at the second highest point in the same period. Both metrics are a good indication of market optimism.”
The average* price of a single family detached home in May was $380,545, up a quarter of a percent from last month. An average priced condo sold for $241,079, up an amazing 3.65% from April. Duplex and row house prices declined 2.96% month-over-month but the average residential price (including all types of residential properties) was up 1.39% from a month ago.
Median prices in most housing categories were up: SFD up 1.13%, condo up 3.64%, Duplex/row house down 2% and all residential up 0.8%. There were 1,857 residential sales in May (up 24.9% from April) with listings of 3,525 properties (up from 3,278 in April). As a result, inventory increased from 7,715 properties to 8,180.
“There is a wide range of property on the market right now but it is turning over quicker than in recent months,” said Mooney. “The local economy is picking up, the demand for labour is increasing but the national situation is keeping interest rates low. We anticipate increasing prices and sales through the summer ahead as we originally forecast.”
Total Edmonton and area MLS® System sales in May were $701 million for an annual total-to-date of $2.574 billion.
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Highlights of MLS® System activity
|May 2011 activity||Record for
|% change from
|Total MLS® System sales this month||2,080||3.27%|
|Value of total MLS® System sales - month||$701 million||1.53%|
|Value of total MLS® System sales - year||$2.57 billion||-9.40%|
|Residential¹ sales this month||$616 million||1.23%|
|Residential average price||$331,974||-2.42%|
|SFD² average selling price - month||$380,545||-2.48%|
|SFD median³ selling price||$357,000||-2.19%|
|Condo average selling price||$241,079||-2.96%|
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 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. For information on a specific area, contact your local REALTOR®.