Real Estate with the Rouses

'Ghost listings' haunt real estate stats

2008-01-21T16:35:00.000-07:00

Cancelled or expired sales deals kept on books fog supply-demand picture

EDMONTON - "Ghost listings" could return to inflate the oversupply of Edmonton homes for sale, says realtor Rod Thompson of Re/Max Accord.

In the last three months of 2007, the inventory of homes listed for sale in metropolitan Edmonton dropped from 9,918 to 7,094 units, bringing a closer balance between buyers and sellers.

During that time, however, at least 7,000 units expired or were cancelled, Thompson says.

"I call these 'ghost listings' because they can come back and haunt you later," he has written in his latest Rod Report newsletter.

"If they do come back to the market in the spring, which is common with unsuccessful sellers from the fall and winter, they have the potential to further offset the current buyers market," he wrote.

But Marc Perras, president of the Realtors Association of Edmonton, said he considered that risk when preparing his forecast that average home prices will rise only four per cent in 2008.

"I think some of those properties will be back in the market but some will not be," he said, as some owners have abandoned hopes of selling at unrealistically high prices and others have rented their properties.

And Thompson's estimate of ghost listings could be exaggerated, said Jon Hall, RAE marketing manager, because many listings were cancelled then immediately renewed to create the appearance of fresh, new listings.

Perras said he expected inventory to rise early in 2008, then decline with rising sales.

With a good selection, and prices expected to remain flat or rise slightly, "a lot of people are saying now is a good time to buy," and sales have been brisk in early January, Perras said.

Ron Chalmers
The Edmonton Journal
Saturday, January 19, 2008

2007 just shy of record year

2008-01-10T10:07:00.000-07:00

Metro area enjoyed third-best year on record, CMHC reports

EDMONTON - Edmonton-area housing starts fell in December, leaving the 2007 total just short of an all-time record.

The 578 monthly starts were down 15 per cent from December 2006 -- the second consecutive monthly decline.

"For all of 2007, total housing starts reached 14,888 units, the third-best year on record and only 82 units shy of 2006's performance," Canada Mortgage and Housing Corporation reported Wednesday.

"Total housing starts across (metropolitan Edmonton) have now exceeded 11,000 units on an annual basis for an unprecedented sixth year in a row."

Comparing 2007 to 2006, starts of single-family houses were down 15.2 per cent while starts of multiple units were up 22 per cent.

Across Alberta, total housing starts for the year were up 64 per cent in Camrose, 57 per cent in Lethbridge, 40 per cent in Wood Buffalo and nine per cent in Red Deer. They were level in Grande Prairie and down 21 per cent in metropolitan Calgary.

CMHC analyst Lindsay Kendall said Wednesday that she thought Edmonton employment grew by as much as six per cent in 2007 -- compared to a forecast of only 5.3 per cent.

She expected new Edmonton-area condominium starts to continue rising in 2008.

But starts of single-detached houses will fall from about 7,700 in 2007 to about 6,700 in 2008, she said.

The price of new, single-detached houses, which averaged $440,000 in 2007, will hit $500,000 in 2008, she predicted.

The apartment construction price index will have risen about 30 per cent in two years, by the end of 2008, said Kendall, speaking in the Realtors Association of Edmonton Housing Forecast Seminar.

She expects apartment vacancies to average about 1.5 per cent in 2008, and average monthly rents for two-bedroom units to rise approximately 12 per cent to about $1,070

Ron Chalmers
The Edmonton Journal

Thursday, January 10, 2008

Realtors predict slight hike in house prices

2008-01-10T10:05:00.000-07:00

First-time homebuyers opt for longer amortization periods, banker says

EDMONTON - Edmonton-area home prices will rise four per cent over the next 12 months, predicts the president of the Realtors' Association of Edmonton.

"If my forecast is accurate, then single-family detached homes will sell for $397,303 next year, and condos will be priced at $263,400," Mark Perras said Wednesday at the REA annual forecast seminar. Almost 500 realtors attended the sold-out event at the Westin Hotel.

Increases will be restrained by a large supply of listed homes and steep price hikes over the past 18 months -- offsetting the positive effects of a strong economy, positive in-migration, nearly full employment and low interest rates, he said.

Ian Glassford, chief financial officer of Servus Credit Union, also expects small gains. "Maybe one or two per cent," he said. "Not five or 10 per cent."

Glassford said the Edmonton market faces "a lot of headwind from the U.S.," where foreclosures, falling prices and tightening mortgage loan requirements have hurt real estate values.

That credit crunch affects Canada indirectly, Glassford said. He believes a more important effect is "mostly psychological" as the U. S. example causes some Canadians to lose confidence in real estate investments.

While interest rates have risen slightly, Steve Blakely, president of Servus Credit Union, noted that longer amortization periods have helped affordability. Last year, 12 per cent of Servus mortgages were undertaken with 40-year amortization periods and 10 per cent with periods of 30 or 35 years.

Lindsay Kendall, a market analyst with Canada Mortgage and Housing Corporation, predicted that Edmonton prices for all forms of resale housing will rise 6.5 per cent this year, to $360,000.

Perras pointed out that rising prices over the past three years have squeezed out many would-be first-time buyers.

"Housing is a provincial responsibility," he said. While Premier Ed Stelmach has pledged $285 million toward the problem, that promise pales beside the $6.4 billion committed to teacher pensions, Perras said.

He urged support for a range of programs for people with physical, mental, social and addiction problems, recent immigrants, and the working poor who cannot afford market rates for available housing.

Lawyer Sonny Mirth noted that parts of the higher-end condo market have short supply.

He saw "a need for larger, upscale units for empty-nesters" -- and more demand than supply of "staged, integrated housing," for residents who may need increasing levels of assistance.

Perras predicted a slight drop in residential unit sales. "I expect that 19,100 residential properties will sell through the MLS in 2008, as compared to 20,544 sales in 2007."

Ron Gilbertson, executive director of the Edmonton Economic Development Corporation, looked beyond home prices to announce that Edmonton could become one of the world's great medium-size cities by improving its safety, urban and external transportation, and self-image.

We already have a world-leading economic base, outstanding health and educational systems, and excellent cultural and recreational amenities, he said.

But Edmonton's murder rate has ranked number 1 or number 2 in Canada for two years.

Also, "we have been growing so fast that we have been unable to keep up our urban transportation system."

And Edmontonians often are their own most severe critics, Gilbertson said. "One of the worst things we do is bad-mouth ourselves."

Edmonton housing, compared to medium-size cities nationally and internationally, is "relatively affordable" he said. But he worried about the effects of economic growth on lower-income families.

"It isn't going to work if it's just the rich getting richer."

Gilbertson cautioned that dealing with greenhouse gas emissions from the energy industry presents a major challenge to this province.

Ron Chalmers
The Edmonton Journal

Thursday, January 10, 2008

2007 Housing Year a Roller-Coaster

2008-01-08T13:21:00.001-07:00

Edmonton, January 3, 2007: In the beginning of 2007 housing prices continued to climb just like the year before but by mid-year the market had turned and prices cooled as the housing inventory quadrupled. Year end figures released by the REALTORS® Association of Edmonton reveal the largest swings ever experienced in the local market. Despite the roller-coaster-like rises and falls, the market still ended up 12% ahead of last year’s prices.

“REALTORS® were assisting sellers to handle multiple offers and unbelievable short sales periods for the first half of the year,” said Carolyn Pratt, President of the REALTORS® Association. “The summer it was a buyers market with ten homes available for every buyer.” The sudden changes in market conditions made both buyers and sellers anxious and increased their dependence on solid market advice from their REALTOR®. “Now the market seems to have stabilized and returned to what we call normal,” said Pratt.

PRICES

Single family dwellings listed on the Multiple Listing Service® which sold on January 1 for $341,933 on average* were priced at $382,022 at the end of December. Although 11.7% higher than a year ago the December prices were off 11.5% from the peak prices in May. December prices were 1.5% higher than November 2007.

Condominiums on MLS® sold on average for $253,270 in December after starting the year at $227,428. They peaked in July at $271,908. Condo prices were also up 11.4% over the year and up 0.4% from last month. Duplex/rowhouse prices jumped 4.0% from $295,178 last December to $306,967 in December 2007. Duplex/rowhouse prices peaked in October at $367.964.
Despite price decreases in the last few months, year-over-year prices were up. The average residential sales price (which includes all types of residential property) was up 1.5% from last month at $329,705 and up 12.1% when compared to last December prices.

SALES

“The rapidly increases in housing costs forced more first-time buyers to consider the lower priced condominiums,” said Pratt. “As a result there has been a continuous increase in condominium sales in the past five years.” Total condo sales of 7,157 units in 2007 were up 6% from 2006 when 6,761 units were sold.

At the same time Single Family Dwelling sales on 2007 dropped back to 11,765 units sold. Sales of SFDS were higher in each of the past three years. SFDs now represent 69% of total residential sales as compared to 27% (up from 23% last year) for condos.

Total sales (including residential, commercial and rural sales) through the MLS® in 2008 were 23,333 units with a value of over $8.2 billion (up from $6.6 billion in 2006).

In December the residential sales to listing ratio was 62% with 1,388 listings and 857 sales. For the year there were 41,030 residential listings with 20,544 sales for a S/L ratio of just 50%. The average days-on-market at the end of December was 56 days with 7,094 residential units in inventory in the wider Edmonton market.

Despite the wildly dynamic nature of the market in the past 24 months, the number of REALTORS® (i.e. members of the Association) increased through the year from 3,104 to 3,241 which indicates some optimism in the market potential.

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2008-01-07T16:42:00.000-07:00

Real estate boom finished in Edmonton: report

2007-12-18T09:46:00.000-07:00

It will be a buyer’s market next year in Edmonton.

That’s the word from Royal LePage, which today released its market forecast for nine major Canadian cities.

The realty company said house prices in Edmonton will go up only 1% – from an average of $337,500 to $341,000, a major taming of last year’s almost 35% increase.

House prices were strong during the first half of 2007, but they tumbled on the second half, said Ken Shearer, broker/owner of Royal LePage Noralta Real Estates Inc.

It resulted in a glut of houses for sale which dragged prices down compared from early this year and the previous years.

“So, we’re thinking that the sales are gonna drop in 2008 from a high of about 20,000 to 18,000.” Sales peaked around May and June with an average price of $354,000,

Both sales and prices have been dropping since with an average of $325,000 in November.

“Sellers suffered when prices started to drop.”

However, Edmonton will remain as one of the top four most expensive major Canadian cities to buy a house, just below Toronto.

Vancouver tops the list again as the most expensive market with a forecast of $587, 500 average price, an increase of 4%, followed by Calgary’s price which is predicted to go up also by 4%, from $412, 500 to $429,000.

The most affordable houses in major markets can be found in Regina and Winnipeg. But prices in those cities are expected to climb up 15.4% and 11.4%, respectively.

The average projected price in Regina for this year is $163,500 and it will go up to $188,600. In Winnipeg it will go from $179,500 to $190,000.

“Alberta home price increases will be much more moderate in 2008 as the regional market continues to adjust to the new house value reality,” the survey predicted.

Nationally, house prices are expected to rise by 3.5%, from $306,500 to $317,228, but sales will drop by 4%.

Edmonton Sun - Tuesday, December 18, 2007 - RENATO GANDIA

After slump in November, home prices to rise next year

2007-12-18T09:44:00.000-07:00

Oversupply expected to tighten in February

EDMONTON - Edmonton home prices will recover in the first half of 2008 from their late-2007 slide, says the Royal LePage Market

Survey Forecast, released Monday.

The average residential sale price is expected to rise only one per cent to $341,000 in 2008 from the projected 2007 average of $337,500. But November prices averaged only $325,060 according to the Realtors Association of Edmonton so the forecast actually is 4.9 per cent above those recent levels.

Ken Shearer, broker/owner of Royal LePage Noralta Real Estate Inc., predicts that the current oversupply of listed homes will start to tighten in February as more properties are sold and others are pulled off the market.

Demand will remain strong with in-migration, low unemployment and low interest rates, Royal LePage predicts.

"The move by the Bank of Canada to reduce its overnight target-lending rate by a quarter of a per cent in 2007 will bode well for first-time buyers," it notes.

Additionally, "the Canadian dollar hovering at parity will continue to bolster the country's high consumer confidence and is anticipated to translate into continued growth in consumer spending," Royal LePage predicts.

"The negative impact of the high dollar on the country's manufacturing sector for export trade will be felt mostly in southern Ontario and Quebec."

The second quarter of 2008 with more balanced supply and demand plus a predictable seasonal surge should bring most of the year's price rise, Shearer says.

Edmonton's one-per-cent price increase from 2007 to 2008 is expected to be the lowest among major Canadian cities, with other Royal LePage forecasts ranging from 3.5 per cent in Toronto and Montreal to 15.4 per cent in Regina.

From 2006 to 2007, Edmonton led the country with a 34.5-per-cent average home price increase.

The number of home sales is expected to fall in 2008 across most of Canada. Royal LePage forecasts a national decline of four per cent, to 500,927 units. Edmonton unit sales are expected to fall 6.5 per cent -- which is more than any other major city -- to 18,950 units.

Edmonton Journal - Tuesday, December 18, 2007 - Ron Chalmers

Buying a home can be your first step to financial security

2007-12-18T09:39:00.000-07:00

Owning beats renting and sooner is better than later

EDMONTON - Back in 1992, I bought my first place for $55,000. It was a two-bedroom townhouse-style condo.

At the time, the average house price in Edmonton was about $100,000 and the government had just introduced the ability to borrow money from your RRSP to buy a home. I borrowed $5,000 from my RRSP and added another $5,000 of cash for the down payment. I remember both the $10,000 down payment and also the $55,000 price tag seemed like a lot of money.

Today, the average house price in Edmonton is about $375,000. In 2004, the average house price was about $175,000.

Many first-time homebuyers in Alberta are finding that the real estate boom has made it more difficult to buy their first home. In other parts of the country like Toronto and Vancouver, this scenario for first time buyers has been a reality for many years.

Regardless of the boom and the city you live in, buying your first home is always tough. Here are some tips for those looking to get into the housing market.

It's better to get into the market: I believe owning over renting is better for your personal finances.

Some people I've talked to delay buying in order to wait to buy the right house. Let's face it, your first place is your starting point.

I say it's better to get into the market because everything moves together. You'll always want to upgrade no matter what kind of house you start with. For me, a townhouse condo in the west end was not the ideal place but it got me into the market. It got me started into a world of ownership.

I have owned a lot of places and upgraded many times. I'm thankful I got in even though it was not the ideal place.

Buy what you can afford: I know you might think this is tough in this market but don't push yourself to the limit.

Too many people are stretching amortization periods and putting down very small down payments.

As far as I am concerned, you are better off buying less house so that you can minimize the debt and minimize the amortization.

Back in 1992, I could have bought a $100,000 house with the same $10,000 down payment, but it would have meant more interest costs. Instead, I chose a smaller mortgage to build more equity, which consequently allowed me to upgrade a year later.

When you go see mortgage professionals, they will always tell you the biggest mortgage you can qualify for based on your income. Don't necessarily buy the biggest house you can afford according to the mortgage brokers.

Use the Home Buyers Plan: The government allows first-time home buyers to borrow up to $20,000 out of their RRSP to buy their home.

Although you don't have to pay interest or tax on that money, you do have to pay that back over a 15-year period. Some critics will argue that you lose the opportunity to make money inside the RRSP, but you will have the opportunity to make money with your property. For me, I had saved some money to buy the home, but borrowing out of the RRSP allowed me to get my down payment up to almost 20 per cent. As we all know, real estate has been a pretty good investment since then.

Don't speculate: Real estate prices go up and down.

Fortunately, they tend to go up more than they go down and that's why, long term, it is better to own than rent. There's always someone quick to predict what house prices will be in the next months or years, but the fact is nobody knows. Anyone predicting is guessing. Buy because long-term owning is better than renting. Buy within your means so that you can weather through some of the tougher times.

Edmonton Journal - Saturday, December 15, 2007 - Jim Yih

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2007-12-11T16:47:00.000-07:00

Housing prices tumble even as inventory decreases

2007-12-05T14:04:00.000-07:00

Edmonton, December 4, 2007: The REALTORS® Association of Edmonton reports that housing prices in Edmonton suddenly dropped in November. The largest monthly drop in single family prices so far this year was 3.2% in August. The drop in November was 5.3%. The residential inventory is still high as compared to historical levels but has dropped throughout November. There were 8,667 residential properties available on the Multiple Listing Service® at the end of the month

“Home sellers have come to realize that the current market is very price sensitive. If a property is not priced right for this market it may languish in the listings,” said Carolyn Pratt, President of the REALTORS® Association. “Buyers currently have lots of options available and are being selective about homes they consider.” She stressed that REALTORS® using the MLS® can provide the most comprehensive and accurate market prices and current neighbourhood pricing trends.

Single family dwellings listed on the Multiple Listing Service® sold on average for $376,267 in the Edmonton area in November. Condominiums on MLS® sold on average for $252,277 (down 4.0%) and the more volatile duplex/rowhouse prices were down 15.4% and sold for $311,193 on average. The average residential sales price (which includes all types of residential property) was down 6.5% from last month at $325,060.

“As the current listings become sold or are withdrawn the current inventory will drop. As we move into the spring with a more normal inventory, we expect that prices will again begin to rise slowly," said Pratt.

Typically, homes sold more slowly with the average days-on-market up a week to 51 days. The sales-to-listing ratio was higher than October at 45% and total residential volume for November was $397 million; down 10.6% from the same month last year. The total MLS® sales figure for the year to date was $7.9 billion and will be a record setting $8 billion by the end of the year.

Realtors Association of Edmonton

Home prices down in November

2007-12-04T12:52:00.000-07:00

6.5-per-cent drop from October, but average price still higher than a year ago

Tuesday, December 04, 2007

EDMONTON - Edmonton home prices dropped an average of 6.5 per cent in November from October.

Single-family houses fell 5.3 per cent to $376,267 while condos were down four per cent to $252,277.

Edmonton house prices now are down $50,000 from their May peak of $426,028.

The volatile mixed category of duplexes and rowhouses plummeted 15.4 per cent to $311,193.

The average for all housing forms, $325,060, is still up 15.1 per cent from November 2006.

"The current market is very price-sensitive," Carolyn Pratt, president of the Realtors Association of Edmonton, said today. "If property is not priced right for this market, it may languish in the listings."

During November, residential inventory dropped to 8,667 properties from 9,577 a month earlier.

Pratt predicted that inventory will continue to fall and that prices will rise slowly in the spring.

Edmonton Journal - Tuesday, November 4, 2007

CMHC relaxes mortgage loan requirements

2007-10-29T15:59:00.000-06:00

No money down for investment property raises concerns and a few red flags

TORONTO - You have to wonder what David Dodge will be thinking this time. Just over a year ago, the Bank of Canada governor met with Canada Mortgage and Housing Corp. because of his fears exotic mortgages were juicing an already robust Canadian housing market.

Now, CMHC has decided it is going to let Canadians buy investment properties with no down payment.

The Crown corporation, which controls about 70 per cent of the mortgage insurance market in Canada, has quietly introduced changes that lower the down-payment threshold for an investment property. Instead of needing 15 per cent down, Canadians will be able to buy a second property -- not to mention a third and fourth and fifth -- with no money down.

"These enhancements will ensure continued supply of affordable rental accommodations across Canada," said Pierre Serre, vice-president of insurance products with CMHC.

Critics charge CMHC once again has moved into risky territory, the last time being its decision to allow Canadians no money down on a principle residence. "Look at the fee, anytime it's that high, you know there is a lot of risk," said one senior mortgage industry observer.

The mortgage insurance fee for the new product is 7.25 per cent of the total amount of the loan. So, a $300,000 mortgage would have a $21,750 mortgage insurance fee.

Instead of paying the fee up front, CMHC will allow that fee to be added to the overall mortgage which can be amortized over as many as 40 years. Based on 5.8-per-cent interest, the current discounted rate for a five-year term, it would cost just over $1,700 a month to carry that $321,750 mortgage.

By law, any consumer with less than a 20-per-cent downpayment must buy mortgage insurance if they are borrowing money from a financial institution covered under the Bank Act.

None of CMHC's competitors are coming close to this new offer. Genworth Financial Canada -- the other dominate player with about 30 per cent of the mortgage insurance market -- requires investors to have at least 10 per cent down.

Back in July, 2006, Dodge demanded a meeting with the federal Crown corporation. He was concerned about products like interest-only mortgages which give consumers the option of not making a principle payment for the first 10 years of a mortgage.

Serre said CMHC did consider the issue of whether the changes could over-stimulate the market. "We look at those kind of considerations all the time," he said, adding that to get a loan consumers will have to meet certain criteria in terms of their overall debt load. "We're not trying to get people into situations they can't manage."

Some question whether there was any need for the latest change, given how strong the market in Canada remains.

The Building Industry and Land Development Association said this week condo sales in Toronto -- the largest market for new high rises in North America -- were up 31 per cent over the first nine months of the year from a year earlier. "I'm not sure why CMHC is relaxing the rules, the logic escapes me," said Stephen Dupuis, chief executive of BILD. "The market is strong. I look at what is happening in the United States and wonder if there is a need to be so free with credit."

The real reason for the new program, suggest some commentators, is CMHC trying to fend off competitors in the marketplace. In a constant battle with Genworth, CMHC is also facing up to four new mortgage insurers who have applied to do business in Canada or are already licensed to do so.

"There are competitors in the marketplace that didn't exist before. They are reacting to competition that hasn't even materialized yet," said Dupuis.

CIBC World Markets senior economist Benjamin Tal said the latest changes by CMHC are probably just the beginning. "The genie is out of the bottle, this mortgage market is starting to move. Over the past 16 months we've seen more changes than the past 30 years," said Tal.

Edmonton Journal

Canadian real estate sales slip

2007-10-29T15:55:00.000-06:00

Sales in Canada's red-hot real estate market cooled in September, but average prices ticked up, according to new figures from the Canadian Real Estate Association.

Seasonally adjusted sales last month in 24 major markets fell 3.1 per cent from August to 28,591, CREA said. Sales in the four biggest markets of Toronto, Vancouver, Montreal and Calgary all declined.

But the average price of a resale home rose by almost $3,000 to $328,660 — up 11.1 per cent from September last year.

Prices were up year over year in every major market except Thunder Bay, Ont., where they were 0.9 per cent lower.

The big price increases in Saskatoon, Edmonton and Calgary showed some signs of easing. Saskatoon's average resale home sold for $242,091 in September — still up 49.3 per cent from last year's average.

But the number of new listings in those hot western markets also rose dramatically year over year, CREA said, helping to bring more balance to those markets.

"Buyers in [Alberta] will likely take more time to shop and remove some of the steam from price increases," said CREA chief economist Gregory Klump.

He said resale housing activity across the country "remains strong," but it's "beginning to ease back from its breakneck pace recorded in the first half of the year."

Vancouver's real estate market once again topped the country's most expensive. The average home sold for $582,354. That's down by about $5,000 from August, but still represents a better than 10 per cent hike in the past year.

Average resale prices in the Toronto real estate market showed a $19,000 gain from August. The September average of $380,132 was up 8.9 per cent from September 2006.

In the July to September quarter, CREA said sales broke records in London, Ont., Ottawa and St. John's, N.L.

"The underlying economic conditions in Canada that affect real estate are still very strong," said CREA president Ann Bosley in a statement. She attributed lower overall sales to the "volume of new listings."

CREA's report is based on sales through the MLS system.

CBC News

Condos still king among builders

2007-10-16T10:42:00.002-06:00

Edmonton-area apartment and condo builders are experiencing their strongest year since 1982.

This September, 1,3069 multiple units were started, compared to 522 in September 2006.

For the full year, builders “are poised to exceed 6,000 units for the first time since 1982,” said market analyst Richard Goatcher at Canada Mortgage and Housing Corp., which released the figures, Tuesday.

“The lion’s share are condominiums,” Gaotcher said.

For the year to date, Edmonton has captured 72 per cent of the area’s multiple starts.

“A lot of people who look at condos are young professionals without children or empty-nesters who work downtown and want to talk to work or to the Winspear,” Goatcher said.

SINGLE STARTS FALL

The area’s single family starts fell 24 per cent in September, from last September.

They also had fallen in July and August.

“The single detached builders have been throttling back for a while now, similar to the pullback in the resale market, caused by a consumer reaction to the price increases,” Goatcher said.

“And there has been a run-up in inventory.”

“The single-detached house building industry is still expected to achieve the second-best year on record,” he said.

For the year to date, Edmonton city has captured only 49 per cent of the area’s single-family starts.

“Single-family housing goes where the land is cheaper,” Goatcher says.

“Younger families want to be in the suburbs,” he added.

Total housing starts in September were up 54 per cent in Red Deer, 40 per cent in greater Edmonton, 34 per cent in greater Calgary, 34 per cent in Wood Buffalo, and 20 per cent across Canada.

Edmonton Journal – Wednesday, October 10, 2007

Edmonton’s ever-changing housing market continues to fluctuate

2007-10-16T10:42:00.001-06:00

Reports from September indicate it is a buyers’ market out there

Prices of homes sold through Edmonton's Multiple Listing Service (MLS) continued to soften last month while housing inventory bulged once again.

According to the Realtors Association of Edmonton, single family dwellings listed on the MLS sold on average for $399,555 in the Edmonton area for the month of September down one per cent from an August average of $403,757. This is down just 0.99% from last month.

MARKET CORRECTING ITSELF

“Every market has fluctuations and this market is still correcting after a dramatic upswing,” said Carolyn Pratt, president of the Realtors Association. “Right now buyers can take advantage of prices that are below the peak of last May. Sellers, on the other hand, are still realizing significant equity gains from prices that are still 23.5% above this time last year.”

Condominium sale prices rallied in September, selling on average for $270,745 up 0.6% from Augusts’ average condo selling price of $269,139 duplex/rowhouses were down six per cent over the month, selling for $310,110 on average. The average residential sales price was nearly a wash thanks to the gains made by condo sales, dipping just 0.15% from last month to $344,286.

“Condos are still affordable for a lot of people and that’s why that end of the market is holding up,” said Pratt. “It wasn’t that long ago that $270,000 was a lot of money for a house. A lot of first-time home buyers do not have the income to spend $400,000 on a home, so they put their emphasis on buying a condo to build up equity.”

From January 2006 to May 2007, the average price of single family dwellings rose 74%, setting back just six per cent since then. This cooling trend may be the cause of an industry inventory explosion that saw the month’s sales-to-listing ratio hit 26% with 3,952 residential listings.

With only 1,042 sales, September’s homes sales represent the lowest number in almost 10 years, registering a drop of 43.5% over September 2006. As a result, the residential inventory increased to 9,918 from 9,185 over the past 30 days. The average days-on-market in Septembers increased from 36 to 43 days.

“I think buyers are sitting on the sidelines because they have a lot to choose from,” said Pratt. “They’re taking their time making decisions and deciding if the market is sustaining itself yet.”

RECORD AMOUNT OF CHOICE

At the end of the third quarter, year-to-date sales were down slightly compared to last year. Total residential sales were 17,188 units, down 1.5% from the same time last year with a year-to-date sales-to-listings ratio of 52%.

“There is a record amount of inventory and there are a number of factors,” said Pratt, listing investors rushing to dump rentals, spec homes coming due, families who build new, putting their previous homes for sale, builders continuing to build to meet forecasted demand all added on top of normal MLS activity.

“The fundamentals are still good for a growing market. Edmonton has high employment, a lot of people are still moving into the city, low interest rates, I think we’re going through a correction and in the new year we see the market stabilizing and starting to increase gradually again.”

The north central quadrant of the city was the most active with 83 single family dwelling sales while the central and northwest regions were the least active with just 18 sales each.

Central also offered the most affordable single family homes with median sales below $300,000. An average priced house in the southwest was priced at $517,106.

Outside the City of Edmonton, St. Albert was the most active community with 387 single family dwelling sales and the highest average price of $497,380. Six homes sold in Morinville where the average price was just $327,333.

Edmonton Sun – Sunday, October 7, 2007

Housing Market Correcting After Temporary High

2007-10-16T10:38:00.000-06:00

Average home prices fell one per cent in September after peaking in May

Fall home prices are forcing Edmonton-area realtors to market more aggressively.

Average prices for single family houses slipped another on per cent in September to $399,555 from $403,757 in August. They peaked in May at $426,028.

“This market is still correcting after a dramatic upswing,” Carolyn Pratt, president of the Realtors Association of Edmonton, said Wednesday.

Average prices for all homes, including condos, duplexes and row houses, fell $506 to $344,286.

During September, 3,952 homes were newly listed with the Multiple Listing Service while only 1,042 were sold-for the slowest sales month since December, 2005.

MLS residential inventory rose, for the ninth consecutive month, to 9,918 units.

The excess of supply over demand means more choices and less pressure for buyers, Pratt said-but it pushes sellers and realtors to market homes more effectively.

During the past two hears, she said, “we rarely had to do an open house,” because homes sold so quickly.

“Now, with a lot more competition, you have to really step up your marketing,” she said.

“It’s important to expose your property and attract people into the property.”

Most realtors have returned to holding weekend open houses for shoppers, she said.

But the practice of realtors-only open houses, on weekday morning, has been largely overtaken by the Internet, she said, Now, realtors scan new listings online.

More and more realtors use “virtual tours” on their listed homes, with websites including video clips rather than just still photos, Pratt said.

Increasing numbers also are using software that links to Google Earth, so online shoppers can located listed homes within the city, and see surrounding features such as roads, parks and schools, she said.

Pratt noted that professional “home staging” also is becoming more popular, to show properties at their best.

Despite the current “correction,” Pratt pointed out that Edmonton prices are up 24 per cent from 12 months ago, so sellers are still earning good returns on their investments.

Greater Edmonton’s population is forecast to grow by 83,000 in the next five years, Pratt said.

With a strong economic outlook, the ear’s real estate should do well over the next several years, she said-while refusing to predict when prices will rise again.

Edmonton Journal

City's housing market going through a correction, not a crash

2007-09-14T13:56:00.000-06:00

After six years of escalating prices, only surprise is that it took so long

EDMONTON - Relax, folks. It's time for a chill pill. The sky isn't falling on Edmonton's once-torrid housing market.

Yes, prices are softening a bit. The average price of a single-detached home slipped 3.2 per cent in August, to $403,757. The average condo price slid one per cent, to $269,139.

With MLS inventories at record levels, buyers can now take their time. The pressure on buyers has lifted. Multiple offers -- common just a few months ago -- have all but disappeared. Sellers are reducing their prices.

In stock market lingo, this is called a correction. Every other housing market in the country has had one. Now it's Edmonton's turn.

Realtors say they wouldn't be surprised if average prices fall by six or seven per cent from their July peak, before levelling off in early 2008. If so, that would take the average single-detached home price down to $388,000.

Still, for anyone who has both feet planted firmly on the ground, none of this should come as a surprise. The only surprise is that it took so long for Edmonton's overheated housing market to take a breather.

Consider a few facts. Between January 2002 and July 2007 -- a period of 72 months -- local house prices went virtually straight up.

During that period, the average price of a single-detached home rose from $162,780 to an all-time high of $417,150, for a gain of 156 per cent. At the same time, average city condo prices soared by 173 per cent -- to $269,139 from $98,554.

The biggest gains occurred between the end of 2005 and July 2007, when inventory levels simply couldn't keep up with rising demand. During that 17-month stretch, average single-detached house prices rose from $225,130 to $417,150 -- a gain of 85 per cent. Condo prices soared 82 per cent, to nearly $272,000 from $149,254.

There were sound reasons for the big jump in demand, of course. Interest rates were low, and Edmonton's economy was among the hottest in Canada. That drew thousands of newcomers from all parts of the country.

On the economic front, not much has changed. Edmonton is still a magnet for job seekers. Unemployment remains low, job creation is still high and local rental vacancy rates are puny.

Oil prices -- the key driver of Alberta's economy -- hit the highest level in history Wednesday, touching $80 US a barrel.

Roughly $150 billion (Cdn) worth of oilsands megaprojects or related upgraders are planned or underway.

Oilsands output is expected to triple to three millions barrels a day over the next decade.

Roughly a dozen upgraders are slated for the Edmonton region. Thousands of new jobs will be created.

If anything, Alberta's oilsands, despite rising costs and growing pressure to curb greenhouse gas emissions, are only growing in stature, accounting for much of the gain in worldwide oil reserves in recent years.

There's another key factor behind the big surge in Edmonton house prices. Much of it was catch-up. While house prices soared in cities like Vancouver and Toronto in the 1980s and 1990s, prices in Edmonton stagnated.

Even after including the gains racked up through the end of 2006, local house prices rose by less than one per cent annually, on an inflation-adjusted basis, over the previous quarter-century.

By comparison, average house prices in Vancouver rose three times as fast, and prices in Toronto, Ottawa and Montreal rose more than twice as fast. Even cities like Halifax and Winnipeg outpaced Edmonton.

So where does all this leave Edmonton today? Well, despite the gains of recent years, local house prices remain among the most affordable of any major city in Canada.

According to an RBC Economics study released Wednesday, which measures the percentage of median pre-tax household income needed to cover the cost of mortgage payments, property taxes and utilities on four common housing types, Edmonton still looks like a bargain.

Whether the house in question is a condo, a townhouse or a standard two-storey home, Edmonton trails only Ottawa in terms of affordability. For detached bungalows, Edmonton ranks third, behind Montreal and Ottawa.

At the other end of the spectrum is Vancouver, which consistently ranks as Canada's most expensive city. If anyone can explain to me what keeps the housing market in Lotus Land afloat, I'm all ears.

To keep a roof over your head on the West Coast, RBC calculates that you'll need to allocate nearly 71 per cent of all pre-tax household income for a bungalow, and more than 73 per cent for a standard two-storey home. That's roughly twice what any financial adviser considers sustainable.

The benchmark price for a single-family home in Vancouver? It hit $726,067 in August, up 11 per cent from a year ago. That's roughly $323,000 or 80 per cent above the average price for a single detached home in Edmonton.

Curiously, I don't hear any economists ringing the alarm bells over a pending housing crash on the West Coast, where the economy is less robust and median household income levels are lower than they are in Edmonton.

The lesson in all this is clear, friends. Don't worry. Be happy.

The Edmonton Journal - September 13, 2007

Housing boom will falter, bank says

2007-09-13T14:14:00.000-06:00

The current housing boom is "unsustainable" because prices in 14 of 15 major Canadian markets are above their long-term trends, the Bank of Nova Scotia economics department said in a report Thursday.

With the exception of St. John’s, N.L., price levels have risen above the historic rate of increase over a nine-year boom, the longest since the end of the Second World War.

"There is growing evidence of overvaluation in home prices in some parts of the country," the report said, and "the further domestic home prices climb above underlying economic fundamentals, the greater the risk of an eventual correction."

In nine of the 15 markets, prices are within a few percentage points of the long-term trend. But in six western cities, the increases are in the double digits, ranging from 10 per cent in Winnipeg to 25 per cent in Edmonton.

The bank said the market is still quite good, with little evidence of overbuilding or speculative buying. But the real price gain of 60 per cent over the boom period is high by historic standards, and signs of a slowdown are building.

Housing starts through August are down nine per cent, compared to the same period in 2006, and price increases — 7.7 per cent in July compared to July 2006 —are moderating.

"We continue to anticipate a gradual cooling in both housing demand and price appreciation in the months ahead. Affordability is becoming increasingly stretched for many would-be buyers after almost a decade of rising home prices," the bank said.

It's the second bank report in two days to suggest that the housing boom could be faltering. On
Wednesday, the Royal Bank said housing was becoming less affordable.

CBC News - September 13, 2007

Housing affordability still sliding: Royal Bank

2007-09-13T14:11:00.000-06:00

Housing affordability continued to erode steadily across the country in the spring and early summer, Royal Bank said Wednesday in a quarterly report.

"In the second quarter, Canada's housing affordability experienced one of the largest and most broadly based quarterly deteriorations since the mid-1990s," said Derek Holt, assistant chief economist at the bank.

"Higher house prices, mortgage rates, utilities and property taxes all combined to drive the countrywide deterioration," he said.

In the April-June quarter of the year, the proportion of pre-tax household income required to service the cost of owning a standard condominium rose to 29 per cent from 27.5 per cent in the first three months of the year. A standard townhouse required 33 per cent of income, compared with 31.5 per cent in the previous quarter.

A detached bungalow took 41 per cent of pre-tax income, up from 39 per cent, while a standard two-storey home remained the least affordable housing type at 46 per cent — up from 44 per cent in first quarter.

Saskatchewan, Alberta and British Columbia saw the biggest reductions in housing affordability, the bank said.

Affordability deteriorated by approximately 20 per cent across each of the home segments in
Saskatchewan, making it the worst quarterly deterioration on record.

"[Saskatchewan] jumped into the spotlight at the start of the year when an influx of people caught the housing supply off guard, forcing affordability to deteriorate," said Holt. "This momentum continued into the second quarter as the pace of annual price gains soared into the double digit range."

Housing market conditions from Manitoba eastward are relatively stable compared to the western provinces, the bank added.

CBC News - September 12, 2007

Average up 27% in single year despite $10,000 hit

2007-09-06T12:49:00.000-06:00

Cooling of torrid local real estate market 'nothing to panic about'

EDMONTON - Edmonton-area home prices fell almost $10,000 in August -- the deepest drop in the city's history.

The $344,792 average, for all forms of housing, was down 2.8 per cent from July -- well below past declines on a percentage basis.

Single-family house prices fell an average of $13,393, to $403,757.

Housing inventories at Multiple Listing Service plus ComFree rose to 12,112 units. But only 1,466 homes -- 12.1 per cent of those for sale -- were sold in August.

During the month, 88 per cent of single-family home sales were below list prices, by an average of $13,200, the Realtors Association of Edmonton reported Wednesday.

Sellers lost the luxury of bidding wars but "buyers have a lot of choice," said association president Carolyn Pratt.

While August prices have rolled back to April levels, they're still up 27.3 per cent from the previous August.

"It's only natural to expect them to correct a little," ComFree co-president Travis Holowach said. "A four- to six-per-cent correction, following that kind of growth, is nothing to panic about."

Erin Holowach, also at ComFree, said inventory totals can be misleading because some people list their homes without being committed to selling. " 'Hmm, the market's up,' they say. 'Is my house worth $600,000? No -- only $550,000? Guess I won't sell!' "

She thinks some of those "market testers" will drop their listings, and prices will gradually rise next spring.

Pratt expects a soft market for a couple of months, followed by slow price increases. "September has come, holidays are over, and I think we'll see more activity."

She cautioned, however, that "it all has to do with inventory, and it will take time to get that inventory down."

Many new-home buyers will leave their resale homes on the market, she said, and recent condo conversions also will remain in the market.

"Going forward, we see prices softening a little bit more in the next couple of months, but employment is high, interest rates are low and people still are moving into Edmonton," she said.

On balance, "we think the market will be strong again in the new year, but not with dramatic price increases."

Meanwhile, buyers can enjoy this break from the previous pandemonium of making hasty offers with few conditions about financing or inspections.

"They can take their time, do their homework and make their offers with conditions," Pratt said.

On a percentage basis, the August slump was far from a record. From December 1994 to January 1995, prices fell an average 6.5 per cent to $106,645. They fell 7.9 per cent ($75,800) from June to July 1984, and 23.1 per cent ($10,720) from February to March 1964.

Economist Carl Gomez, at TD Financial Group, in the latest issue of his quarterly Housing Bubble Watch, has written that "Edmonton still remains the second most affordable" large Canadian city in which to own a home.

He compared home prices to rents, saw "little evidence of speculation" and found a "very low" risk of an Edmonton housing bubble.

In Calgary, meanwhile, the average price of a single-family home plunged by about $20,000 in August, from a record high $505,920 in July to $485,566, according to preliminary figures from Calgary realtor Bob Truman.

The median price has fallen in the past three months from $439,000 in June to $435,000 in July and $430,000 last month.

Truman said Wednesday night that the average sale price in August was affected by the number of sales in the million-dollar-plus category.

In August, he said, 38 homes sold for more than $1 million, at an average sale price of $1.5 million. That compares with 61 sales in the upper-end market in July, when the average sale price was $1.7 million.

"If you get rid of the million-dollar sales . . . and compare them month to month, well August was down $2,000 compared to July," Truman said of the average sale prices for single-family homes. "So what happened was there were fewer million-dollar sales in August, and that really skewed the average price.

"But if you look at the median price it was only down by $5,000 and that means the same thing, there were fewer million-dollar sales."

In August, the average sale price of condos was $320,790 -- a slight increase from the $318,582 in July.

Edmonton Journal

Buyer's Market

2007-08-30T16:32:00.000-06:00

Home Sellers Forced to Slash Prices

Home sellers are slashing their asking prices by tens of thousands of dollars as Edmonton's once sizzling housing market continues to cool, says a city real estate agent.

And new figures from the Edmonton Real Estate Board show the vast majority of sellers are now getting less than they're asking for - a stark contrast to the bidding wars of a year ago that routinely forced buyers to pay more than the list price.

"There's tons of stuff on the market. There's twice as much inventory in residential real estate today as there was a year ago at this time," Re/Max agent Abe Hering told Sun Media yesterday.

"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced."

As a result, Hering said he routinely advises clients who've had their homes on the market for awhile to drop their asking price by 10% in order to remain competitive. On an average $417,000 single-detached home, that works out to more than $40,000.

"There's no sense reducing any product by 5% because it just doesn't work. We're seeing reductions of 10% and more," he said.

Jon Hall, with the Edmonton Real Estate Board, said 85% of single family homes that sold over the past 30 days went for less than the asking price. On average, the final figure was nearly $12,000 less than the seller was seeking.

Condos didn't fair much better, with 79% going for less than the asking price.

"What most realtors seem to be saying is that the sellers haven't adjusted their mindset to the new reality - that we have over 8,000 listings and that buyers have choice," Hall said.

He said many sellers are knowingly asking for more than their home can fetch.

"And quite frankly, the realtors are getting a bit frustrated," Hall said.

"The client sets the price. If the seller says, 'I want it listed $20,000 above the market price,' they've got to do it. Ten days or two weeks later, the realtor's coming back and saying, 'I told you so,' and dropping the price."

There are several theories as to why there are so many homes on the market.

Carolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.

Other people are moving into larger or smaller homes, while trying to capitalize on the market. Some sellers like to list during the summer months, she said.

Pratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.

Keith Mackie, fleet director for Budget Rent-a-Car, sees it every day. He said demand for moving trucks going to Saskatchewan from Alberta and B.C. has recently increased three-fold.

"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."

Hall said many sellers with homes on the market in Edmonton today won't sell.

"It would be fair to say a lot of listings will melt. They'll just disappear," Hall said. "They'll just be withdrawn after a typical 60- or 90-day listing period."

The Edmonton Real Estate Board recently reported there was virtually no increase in the selling price of single family residence in July. That month, condo prices went up 2.5%, while townhomes increased 1%. The figures for August are expected to be released early next month.

The Edmonton Sun

Canada's house-price escalator pauses in July

2007-08-28T16:26:00.000-06:00

Average Toronto house price down nearly $16,000 from June

Led downward by a $15,951 drop in Toronto, the average price of a house sold through multiple listing services in 24 Canadian markets fell 0.8 per cent in July from June's record level.

But that average price — $332,442 — was still up 13.1 per cent from the July 2006 level, the biggest year-over-year rise since April 2004, the Canadian Real Estate Association said.

The figures were released Wednesday by CREA.

Among markets showing gains, Vancouver was one of the standouts.

Its average July price of $581,108 was up $16,406 or 2.9 per cent from June and was 12.2 per cent higher than in July 2006.Toronto's July average, $366,012, was down $15,951 or 4.1 per cent from June but up seven per cent from July 2006.Toronto Real Estate Board president Donald Bentley said the month-to-month drop was no shock because high-end properties don't tend to sell well in July and August.

"People are at the cottage and so on," he told CBC News Online.

Brian Naphtali, president of the Real Estate Board of Greater Vancouver, said high-end sales were one of the forces behind his city's surge.

There have been 45 sales above $5 million in the Vancouver area so far this year, compared with 23 in all of 2006, he told CBC News Online.

On a year-to-year basis, the biggest percentage price jumps were in Saskatoon (where the July average price was $245,152, up 53.7 per cent), Edmonton ($353,919, up 38 per cent) and Regina ($176,537, up 28.7 per cent).

Prices were down in St. Catharines, Ont., and nearly unchanged in Thunder Bay and Windsor-Essex.

In a commentary on CREA's figures on Wednesday, BMO Capital Markets economist Douglas Porter focused on the fact that 32,420 homes changed hands in July.

"Sales rose 0.8 per cent from already lofty June levels, and were up a towering 19.5 per cent from year-ago levels," he said.

He called this "another clear sign that the underlying Canadian economy had plenty of momentum before the credit squalls broke."

CBC News

Average housing prices increase despite record inventory

2007-08-09T16:04:00.000-06:00

Edmonton, August 7, 2007: The average residential price increased 1.9% in July driven by price increases of 2.5% for condominiums. The average residential price includes all types of housing listed and sold on the Multiple Listing Service® operated by the REALTORS® Association of Edmonton. July listings were double the number in July 2006 and inventory reached an all-time record level of 8,183 homes as of July 31. Last year at this time there were just 1,856 homes available.

There was no change in the average price* of a single family residence in July. The average price of $417,150 was just $115 less than the price in June. Condo average prices rose to $271,908 from $265,172 last month (up 2.5%). Duplex and rowhouses dipped 1% to $339,417. The average residential price was $354,718 and the median price was $395,000 in the greater Edmonton area.

“Buyers have a large selection of homes to choose from and they are taking more time to make a decision,” said Carolyn Pratt, President of the REALTORS® Association. “Sellers cannot just throw their property on the market and wait for a sale; they now have to develop a strong marketing plan with their REALTOR® to realize the best value for their property.” The average days on market was 30 days in July as compared to 25 in June.

The large inventory is a result of a high number of properties being listed for sale and slower than usual sales in July. There were 4,463 residential properties listed in July as compared to 2,230 in July 2006. Total sales of 1,565 properties in July was the lowest figure in the past five years. Just 882 single family dwellings sold in July (1,190 in July 2006) and 553 condominium sales (down from 602 in July 2006) represents a growing share of the total market at 27.8%. The slower July has not dampened annual sales which are still up 9.8% over the same time last year.

“The housing market is changing rapidly right now and only a REALTOR® who is active in the market every day can help you determine an appropriate buying or selling strategy," said Pratt. "Timing, pricing and advertising are just three elements of a marketing strategy. Your REALTOR® can also advise on neighbourhood specific trends and amenities, eye-catching improvements you can make to improve ‘curb appeal’ and which specialists you need for repairs, financing and legal services.” Only REALTORS® can list a property for sale on mls.ca; the largest real estate web site in Canada.

Five communities in and around Edmonton had average prices for single family homes higher than the overall average. They were Southwest Edmonton at $573,428, West Edmonton at $528,072, St. Albert at $483,491, Sherwood Park at $482,344 and Southeast Edmonton at $419,082

Edmonton Real Estate Board

Further Evidence that Housing Market is Achieving Balance.

2007-07-10T10:55:00.000-06:00

Edmonton July 5, 2007: Further evidence of the rebalancing of the Edmonton housing market was released by the REALTORS® Association of Edmonton this afternoon. Unlike many sales in the past year and a half, most homes sellers who sold their single family home in June accepted a lower price than they were asking for to complete the transaction.

There were 801 single family homes sold in the City of Edmonton through the Multiple Listing Service® in June 2007.

- 76.4% or 612 homes were sold for less than their list price
- 11.2% or 90 homes were sold for the exact price expected by the seller
- 12.3% or 99 homes were sold for more than the list price

The average sale price for homes sold below list were discounted by about $12,500.

Homes sold above list gained an average of $8,760 for the seller.

By comparison, in July 2006, just 66% of homes sold under the list price and 23.6% of homes sold were sold for more than the asking price. In September 2006, 65.8% of single family homes sold below the list price and 19% of homes sold for more than the list price.

Edmonton Real Estate Board

Housing Market Regains Balance from Spike in Listings

2007-07-10T10:52:00.000-06:00

Edmonton, July 5, 2007: Residential inventory on the Multiple Listing Service® spiked to near record highs in June as the number of listings soared according to the REALTORS® Association of Edmonton. Total inventory at the end of June 2007 was 6,367 residential properties. Residential inventory at the end of July 1994 set a record at 7,747 properties available. June, September, October and November that year were also record months for number of listings.

Sales remained strong as buyers took advantage of a wider selection of homes available. At the midpoint for the year 13,282 residential properties have been sold through the MLS® valued at almost $4.5 billion. That is 1,712 more properties than the same time last year.

The average price* of a single family residence fell 2% in June to $417,265 erasing most of the gains made last month. Condo prices fell slightly to $265,172 on average. Duplex and rowhouses sold for an average price of $342,836 (down 1.3%).

“The Edmonton housing market has achieved some balance after 18 months of rapidly increasing prices and low inventory,” said Carolyn Pratt, President of the REALTORS® Association. “Our members have reported a number of price reductions and less multiple offer situations than we have faced in the recent past.”

“The fundamentals of the Edmonton market are still strong and should sustain steadily rising prices for all classes of property,” said Pratt. “Even if prices dip slightly in one or two months, homeowners will still have realized phenomenal growth in the value of their homes.” The market has shown remarkable price increases since the end of 2005. The average residential price in the Edmonton market area has risen 73.9% in the past 18 months.

Average prices in other major cities continue to top Edmonton prices. In May (the last month available) the average price for all types of residences was: $591,722 in Greater Vancouver, $429,298 in Calgary and $382,689 in Toronto. In Fort McMurray you can find a home for just $562,200 on average. The all-residential average price for Edmonton in May was $354,410 and $348,056 in June.

There were 4,982 residential properties listed on the Edmonton MLS® in June with 2,203 sales. The sales-to-listing ratio was 44%. Average days on market increased slightly from 22 to 25 days. Inventory increased dramatically from 4,485 residential properties available on June 1 to 6,367 available at the end of the month.

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Edmonton Real Estate Board