Edmonton, Alberta Real Estate Market Update for October 2011
 

October real estate market slower, but not at all scary
 

It may not be scary, but you should watch out for it like you do the scare crow on the porch. Interest rates are the largest single variable right now that could have an immediately negative effect on our local real estate market. It’s fairly balanced, and experiencing normal season trends of slow down on sales volume and prices.

How does Greece affect Edmonton’s real estate market?
It’s a very positive sign to see the total inventory dropping, but we need to see total inventory below 5000 before we’ll see consistent average price gains. Many consumers are mentally & emotionally affected by world events and issues, but the reality is each real estate market is local specific. As well, these negative world events actually strengthen the view of Canada, and of real estate as an investment versus other paper assets. Because real estate produces an income and cash flow, Canada is a commodity rich nation with a mortgage debt model now being copied by other nations, demand for Canadian real estate in general is high. That is the affect that Vancouver, BC and Toronto, ON have experienced, primarily in their high-rise condo markets. Edmonton, AB is very separated from that, and is most largely affected by net in migration growth of population for oil field and related industries and growing average incomes for the same reasons.
What should YOU do now?
Now is an excellent time to buy. Seller’s motivations rise as negative world news, slower market conditions in fall, and time passes. We’ve helped many clients in the past few months with finding & negotiating great deals on their new homes!
If you have a property to sell, and want to maximize your equity, wait for 2012! In general, if you have a condo or town home you want to look at putting on the market in Feb/March. For single family houses, latest April/May. Call us today to discuss your situation.
 

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

Edmonton, November 2, 2011: In October the streets are overrun with ghoulish figures and scary characters but homeowners had no reason to fear the local housing market. Average prices for all types of residential property softened in October as part of the seasonal trend. In October the average* price of a single family detached home dipped lower than the two previous years and the previous month. The average price of a condo also dropped below the two previous same-month levels and was $15,500 below the price at the start of 2011. Over-all, the average residential price dropped to the lowest point since March but was $2,500 above the same figure in 2010.

• SFD average price $362,897 (down 3.4% m/m), median price $346,500
• Condo average price $223,892 (down 4.4% m/m), median price $210,500
• Duplex/row house average price $309,474 (up 4.7% m/m) , median price $308,000
• All-residential average price $319,985 (down 3.9% m/m), median price $312,500

“The balanced market continues as evidenced by the same number of residential sales in October 2011 and October 2010,” said REALTORS® Association of Edmonton President Chris Mooney. “Although there are initial signs of labour shortages in the service sector, we are optimistic about real estate performance. As job openings increase in Alberta, people will again start to move here and drive real estate sales up.”

The sales-to-listing ratio was up 2% to 54% in October and the days-on-market figure rose from 56 in September to 59 in October. Residential listings were down in October compared to last year and as a result the available inventory dropped from 8,062 in September to 7,296 at the end of October. There were 1,170 residential sales in October compared to 1,169 in October 2010. Listings dropped from 2,218 in October 2010 to 2,166 this year.

“My colleagues and I are out in the marketplace every day, talking to buyers and sellers,” said Mooney. “We see some reluctance from clients who have their eye on other markets but those who focus on the local figures see the strength, stability and opportunity that support a decision to invest in real estate.” There are 3,124 REALTORS® active in the Edmonton area who can assist with a real estate transaction. Quoted from: www.ereb.com