Edmonton, Alberta Real Estate Market Update for September 2011

Buyer's market with positive signs for increased values
 

With much turmoil in the world economy, and consumer confidence very low in other places, the real estate market in Alberta is exceptionally strong considering all this. Given the issues, and overall impacts of real estate as an average across Canada, Edmonton specifically is leading the way on job growth, income growth, and in migration again in the country. This all translates in the direction of a consistent real estate market.

We will need to see the supply of available homes drop below 5,000 from the current 8,000+ before we see consistent average price gains, but the current trends are all positive.  Buyers can commit to a purchase today with confidence in the value being stable and growing steadily into the future, plus with historically unprecedented interest rate lows it makes for a no-brainer decision.  The challenge is in finding the best property that suits your needs from the thousands available, and eliminating the lemons from the cherries.  The Preferred Group with RE/MAX River City can give you direction and advice to do just that.  If you've thought of buying or moving up, call us today! 

Sellers in most property types and areas would be best to wait until early spring 2012 to think about selling, depending on current circumstances and future needs.  Feel free to call us for an evaluation on your home's value though today, as we have many owners using the time of low interest rates to do renovations and improvements to their existing homes to set themselves up for future sale in the next 1-3 years, or to make their current home work for changing family needs. 

REALTORS Association of Edmonton - Market Report (Sept. 2011)

Edmonton, October 4, 2011: The owners of single family homes in Edmonton and area have seen the value of their property increase more than many other investments. While the stock market and dollar have plunged recently and interest on savings accounts is minimal, local homeowners are seeing a five percent increase in the value of their residential property this year. Compared to prices on December 31, 2010, a single family dwelling has increased on average* 5.1% and a condo has increased 4.7%.

"REALTORS® remain optimistic about the future of the local market," said REALTORS® Association of Edmonton President Chris Mooney. "In January, we forecast that single family homes would be priced about three percent higher at year end. Now they are priced five percent higher and we don't anticipate that prices will soften very much in the fourth quarter. We did not anticipate an overall increase in condo prices so we are a little surprised that condo prices are also up almost five percent."

The average price for a single family detached home in September was $375,738, up 1.4% from a month earlier. The average price of a condo was up 2.1% to $236,125 during the same period. The average residential price in the Greater Edmonton area in September was up 2.6% to $332,782 from $324,217 in August. Duplex and rowhouse sales of just 66 units in September showed an average price drop of 3.2% to $296,117.

The consumer confidence that has allowed housing prices to rise has also spurred sales. There were 1,345 residential property sales in September, with listings of 2,585 residential properties. The residential sales-to listing ratio was 52% with homes resting on market for an average of 56 days. Total MLS® listings numbered 3,292 with total MLS® sales of 1,536 properties of all types.

"Movement of properties in the lower half of the price range is faster than the more expensive properties," said Mooney. It takes 48 days on average to see an SFD priced below average compared to 53 days to sell a home priced over the average. "The consumer is price conscious and with 8,062 homes currently on the market, the buyer has lots of choice. Sellers should ensure that their home price is based on current market reality and not a fantasy if they want to sell in a reasonable time period."

There were 3,178 REALTORS® ready to serve clients at the end of September 2011. Call your REALTORS at the Preferred Group today at 780-701-2626 and ask for John Carter or Anu Khullar.     Quoted from www.ereb.com