Greater Edmonton Real Estate Market Performs Well in March
It seemed like March was off to fairly slow start for sales in Edmonton, but things definitely picked up as the month went on; there were 1625* residential MLS® sales in the Greater Edmonton Area in March according to numbers released by the REALTORS® Association of Edmonton today. That number is up from 1605 last March and 1318 last month.
Looking at the chart you'll see sales for the past 4 years have been extremely consistent in the first 3 months of the year. April seems to be a pivotal month with sales in Edmonton peaking in April 2010 while 2009 saw sales unexpectedly sky rocket and peak in June. We are definitely not expecting a path similar to 2009 sales, but we do expect a to see a small bump in sales aound the time the majority of rate guarantees at 2.99% expire. On a side note some of those 2.99% rates are not such a good deal especially if you MUST renew with that lender 5 years from now and you can't negotiate the rate. More on that later.
Edmonton real estate sales
The average residential sale price in Edmonton was was $335,187 in March, up from $327,725 last year and $329,911 last month. The median sale price in Edmonton was $320,500 in March up from $311,000 last year and $317,00 last month. So far the gradual increase is following a typical pattern seasonal pattern. April will tell us how much confidence there is in the market.
Edmonton real estate prices
The end of month inventory of homes for sale in Edmonton fell right in line with the last two years and sits at 6,851:
Edmonton real estate inventory
The number of new listings shot up to 1625 in March - higher than last year but much lower than 2010 and 2008:
Edmonton real estate listings
*We adjust the residential sales total for the current month to account for unreported sales. Every month 6% of sales on average are not reported to the Association in time for the monthly report. The following month the numbers are updated to reflect the total sales during the previous month. That means the current month always looks worse compared to previous months. So far our adjusted numbers have been far closer to the actual numbers than those reported by the Association each month (so far on average I am off by 4 sales whereas the association is under reporting by 73 sales on average each month).
Edmonton Single Family Home Sales Show Continued Strength in March
Preliminary numbers show single family home sales remained strong in Edmonton in March. There were 766 sales of single family homes in Edmonton in March, up from 581 last month and 707 last year.
Edmonton home sales
Condo sales on the other hand were below average - 319 condos sold in Edmonton in March through the MLS system, up from 264 last month but down from 382 last year. We are honestly not sure why condo sales continue to lag while single family sales are strong. One thought is that with so many condos for sale, buyers are being particularly choosey, and with rental vacancy rates dropping sellers are fining it easy and profitable to rent out their units instead of selling them. Unfortunately there is no way to prove this theory, and there could just as easily be any number of other explanations.
Edmonton condo sales
Single family home prices rose in March in all categories, as you would expect with such strong sales. The average sale price for single family homes was $388,963 up from $373,041 last month and $380,765 last year. This is the highest average sale price for single family homes since the 2011 peak price of $390k in July. The median sale price for single family homes was $353,000 up from $347,500 last month and $348,000 last year.
Condo prices remained similar to last month and last year. The average condo sale price in Edmonton in March was $229,633 compared to $230k last year and $227k last month. The median sale price for condos was $214,800 down from $217,500 last year and $215,500 last month.
Edmonton real estate prices
On a price per square foot basis, single family homes also outperformed condos. The average sale price/square foot for single family homes was $259 compared to $256 last month and $263 last year. Condos sold on average for $220/square foot in March compared to $223 last month and $225 last year.
Edmonton real estate price/square foot
As always, this is our preliminary report on the Edmonton real estate market, and our final report will follow when the final numbers are released by the REALTORS® Association.
Edmonton Real Estate Market Weekly Update – Mar. 30/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 461 (522, 531, 486)
# Sales: 267 (239, 235, 231)
Ratio: 58% (46%, 44%, 48%)
# Price changes: 212 (211, 211, 192)
# Expired/Off Market Listings: 82 (125, 124, 102)
Net loss/gain in listings this week: 112 (158, 172, 153)
Active single family home listings: 2685 (2631, 2525, 2371)
Active condo listings: 1713 (1649, 1569, 1525)
Homes 4-week running average: $388k ($384k, $379k, $377k)
Condos 4-week running average: $229k ($231k, $236k, $234k)
Price changes sure are holding steady! The REALTORS® Association of Edmonton is reporting 1453 sales so far this month for the greater Edmonton Area - we'll see the final numbers next week.
Mortgage rates are on the rise this week, but there were no changes to lending rules in the Federal Budget that came out yesterday. According to a BMO study, Albertans are the least concerned about rising rates affecting affordability amongst Canadians (73% of Albertans said rising rates will not affect their ability to afford their homes, compared to 43% nationally).
Meanwhile, Enbridge singlehandedly reduced the downtown commercial vacancy rate by 2% by leasing over 200,000 square feet in the past 5 months. They plan to hire about 2000 people in 2012, and a significant portion of the positions will be in Edmonton.
Edmonton real estate prices
Edmonton real estate listings and sales
Have a great weekend!
Edmonton Real Estate Market Weekly Update – Mar. 23/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 522 (531, 486, 483)
# Sales: 239 (235, 231, 256)
Ratio: 46% (44%, 48%, 53%)
# Price changes: 211 (211, 192, 186)
# Expired/Off Market Listings: 125 (124, 102, 216)
Net loss/gain in listings this week: 158 (172, 153, 11)
Active single family home listings: 2631 (2525, 2371, 2279)
Active condo listings: 1649 (1569, 1525, 1430)
Homes 4-week running average: $384k ($379k, $377k, $374k)
Condos 4-week running average: $231k ($236k, $234k, $228k)
Edmonton real estate listings and sales
Edmonton real estate prices
The REALTORS® Association of Edmonton is reporting 1055 sales for the Greater Edmonton Area so far this month, which should put us at about the same level as last year.
In other real estate related news, Canadian Finance Minister Jim Flaherty said we should not expect any new measures in next week's budget to cool housing prices, and that he'd like to see if the market will correct itself as it is already showings signs of doing.
Meanwhile CMHC reports that Ottawa will not raise the limit on the amount of mortgages insured by CMHC of $600 billion, dramatically shrinking the growth of their portfolio. To put this in perspective, CMHC's outstanding insurance rose $170 billion between 2007 and 2010, and they expect it to rise only $30.8 billion between 2011 and 2014. Because CMHC is approaching its limit, it is rationing the amount of portfolio insurance that it sells banks to insure pools of mortgages. Spokesman Charles Sauriol said it is giving priority to insurance for individual homes:
“The allocation of CMHC’s portfolio insurance does not affect the availability of CMHC’s mortgage loan insurance for qualified home buyers and will not impact the cost of buying a house.”
The rationing could affect some lenders, and prompt them to charge more for mortgages.
The BC government is apparently in favour of keeping the market hot, by handing out cash to first time home buyers. The bonus, is a one-time refundable personal tax credit, equal to five per cent of the purchase price of a home to a maximum of $10,000, was announced last month in the provincial budget.
These are all examples of "external forces" that put pressure on the market that we often discuss here on the blog.
Have a great weekend!
Edmonton Real Estate Market Weekly Update – March 16/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 531 (486, 483, 351)
# Sales: 235 (231, 256, 184)
Ratio: 44% (48%, 53%, 52%)
# Price changes: 211 (192, 186, 146)
# Expired/Off Market Listings: 124 (102, 216, 70)
Net loss/gain in listings this week: 172 (153, 11, 97)
Active single family home listings: 2525 (2371, 2279, 2244)
Active condo listings: 1569 (1525, 1430, 1422)
Homes 4-week running average: $379k ($377k, $374k, $371k)
Condos 4-week running average: $236k ($234k, $228k, $225k)
The REALTORS® Association of Edmonton is reporting 666 sales so far this month for the Greater Edmonton Area, which should put us around 1400-1500 for the month (below average for March). We were expecting pretty strong sales in March so we'll have to see how the second half of the month goes.
Edmonton real estate prices
Edmonton real estate listings and sales
Have a great weekend!
$100 Off
Price Reduced
On a recent post one of our regular readers was lamenting about a Calgary real estate agent who reduced their listing by $100.00. He added that real estate agents will do all kinds of tricks to get clients. In fairness, I don’t know anything about the situation or the agent but of course I’ve got my 2 cents to throw in.
First of all I don’t know whether the $100 it was client directed or something the agent came up with. Having a lot of clients I can tell you they don’t all think the same or have the same strategies - the diversity in personalites is immense. I have had clients list their properties at $301,000 - a huge mistake in this day and age of internet search - but ultimately the decision is theirs. I too have had clients request weird amounts for price reductions (and even stranger amounts for counter offers, but that's a whole other topic). However, when you think about what the seller and agent did by reducing their price by $100.00, while annoying it is actually a little savvy depending on what they are trying to do.
For example, MLXchange (the REALTOR® interface with MLS® data in Edmonton and Calgary) will automatically email that property out to buyers who have searches set up by their agents (if the agents have selected the option to inform their clients of properties that are reduced in price). This is one of several options that agents have available to them when setting up their clients searches.
So if the property in question was getting lots of looks and activity but its starting to slow down (we track all the online activity of our properties on REALTOR.ca, www.EdmontonRealEstate.pro and countless othersites) then they may have wanted people to take another look who have recently seen the property. If on the other hand there is little to no activity on the property, and they want to get an offer on it, then they are probably pissing into the wind so to speak if their intention is to actually sell the property.
I do know that it's my job to do what I can for my clients, and that sometimes means thinking outside of the box. As long as its allowed, it I don’t see the problem with it, although in this case it's probably not what I would've recommended.
Edmonton Real Estate Market Weekly Update – March 9, 2012
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 486 (483, 351, 450)
# Sales: 231 (256, 184, 202)
Ratio: 48% (53%, 52%, 45%)
# Price changes: 192 (186, 146, 163)
# Expired/Off Market Listings: 102 (216, 70, 119)
Net loss/gain in listings this week: 153 (11, 97, 129)
Active single family home listings: 2371 (2279, 2244, 2207)
Active condo listings: 1525 (1430, 1422, 1388)
Homes 4-week running average: $377k ($374k, $371k, $368k)
Condos 4-week running average: $234k ($228k, $225k, $219k)
Reading The Edmonton Journal on my ipad this morning there were no fewer than 16 articles about our warming economy and expected labour shortages. I don't know if all those articles were in the print edition, but there is certainly a feeling that we are going to buck the international trend for the next while. There is always a lag between job growth and real estate market growth, so it may take awhile to see any affects on our real estate market. In addition, numbers released yesterday by CMHC show home builders in the greater Edmonton area are quite busy adding new inventory which will further increase housing supply.
Edmonton real estate listings and sales
Edmonton real estate prices
Have a great weekend!
Value is a Matter of Perspective
It's tough on young people starting out. Over the years I’ve helped hundreds of people buy their first home, and inevitably mom and dad show up in the picture at some point and the outcome never surprises me. As a father I understand that they want to protect their offspring, and some ask some very relevant questions while others... well lets just say you can tell they love their kids.
Recently I had one such experience where one of the parents told me quite emphatically the property my client wanted to buy in Westmount was WAY over priced. I’m a seasoned negotiator and have been in this position before so I didn’t bite all they way. I explained why I thought it was in the value range, but I could tell they were having none of that. It reminded me of that cartoon where you see the buyer who sees the home as a phone booth, the agent sees it for what it is and the seller sees it as the Taj Mahal.
Anyway, my client loved the property and was pretty disheartened and decided not to make an offer that night but she did call me a couple of days later ready to move forward on it. Unfortunately that very night while we debated the value of the home, the sellers and another buyer came to terms only $3000 thousand less than the list price.
Part of the process of looking at homes, is getting a feel for the market and understanding the current value of homes. After a few times out even the greenest buyers can start to pick out the over and under priced homes. When the parents come on the scene at the last minute, they haven't had the benefit of the research their children have put in to finding a home. So, if your parents are going to have a say in the home you purchase, be sure to bring them along on some of the house hunting trips, so they can get a feel for what is available in your price range.
Edmonton Real Estate Market Reader Poll Results
Last week we posted a poll asking our readers what they thought would happen with the real estate market in Edmonton. It seems to me our readers are more optimistic than in the past - I've posted last year's results as well:
1. The 2012 spring market in Edmonton will be:
- Good 44%, Last year 31%
- Average 34%, Last year 31%
- Below average 15%, last year 27%
- Hot, hot, hot! 7%, Last year 11%
So last year 42% thought the market would be above average or hot, while this year that number is up to 51%. The "below average" thinkers dropped almost in half.
2. In 2012 mortgage rates will:
- Stay about the same - 69%, Last year 48%
- Rise - 30%, last year 45%
- Decrease 2%, Last year 3%
- Skyrocket 0% last year 2%
3. The total sales for 2011 in Edmonton will be:
- Higher 43%, last year 40%
- About the same 36%, Last year 29%
- Lower 21%, last year 30%
A slight movement towards higher sales this year, but nothing major.
4. Compared to other markets in Canada, Edmonton's real estate market will:
- Perform better than average 79%, last year 64%
- Be about average 16%, last year 28%
- Be below average 5%, last year 5%
While our readership may not be able to agree on the direction of the market, we can almost all agree that Edmonton will do better than the rest of the country.
5. At this time next year the average residential sale price in Edmonton will be:
- Higher 57%, last year 43%
- About the same 26%, last year 20%
- Lower 16%, 36%
A lot more people think prices will rise this year than last year.
As always, the interesting results come through the comments. Here is what our readers had to say about the 2012 housing market in Edmonton:
- Nationally, affordability may be affected by any Federal changes to mortgage insurance, both for first time home buyers and investors caught with overpriced homes from 2007. However, this may also positively impact a tighter rental market in and around Edmonton. Who will still be cash flow positive.
- Like it or not, there is a "bust" coming on planet Earth. We know that Europe will be the first affected, but like a cancer, it will spread to the rest of the world. As much as we don't want to see it here, Alberta will also be deeply affected. We need to keep our eyes peeled on the Middle East, i.e. Iran and Israel, and of course, the U.S.. We might be OK for the rest of this year, but that's about it. With over 7 billion people on the earth, something needs to give. This will happen "suddenly". God bless and protect Canada.
- Oil above $100, Keystone getting approved, American economy struggling north. Labour increase will need condos/homes at the lower/mid range or will rent (most arriving will not have deep pockets).Should dry up current excess inventory unless developers go crazy.
- Basing most of my answers off of Don Campbells forecast of low unemployment, migration steady and general affordability of yeg comparatively speaking
- Prices will continue to rise and there will be more resales later in the year than normal with prices staying at spring highs. Rental market will start to get very tight by summer increasing the resale market into the fall of 2012.
- This year will look pretty much like last year.
- Everything points to a better relative performance in 2012 than other Canadian markets, except maybe Calgary, Saskatoon, and Regina. Although Sask housing prices have already skyrocketed whereas Alberta prices have not. So it all looks good here for 2012 - as long as they don't overbuild again.
- Low inventories may continue for a few months but new confidence in the trade up market will entice those who have been putting a move off due to uncertain times. The move up market will start to wake up. An influx of people will keep prices on a modest rise. Low priced product will continue to be hot, but prices in this segment will certainly rise by year's end.
- Homes will need to be priced right in order to sell. To many over priced listings flooding the market. I sell new homes for a living, And am finding many people are building due to the fact they can get a larger new home for less then what is available on the resale side.
- The Edmonton real estate market will out-perform the rest of the country due to strong employment and in-migration.
Edmonton Real Estate Market Weekly Update – Mar. 2/12
Edmonton Real Estate Market Update
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 483 (351, 450 465)
# Sales: 256 (184, 202, 193)
Ratio: 53% (52%, 45%, 42%)
# Price changes: 186 (146, 163, 147)
# Expired/Off Market Listings: 216 (70, 119, 89)
Net loss/gain in listings this week: 11 (97, 129, 183)
Active single family home listings: 2279 (2244, 2207, 2123)
Active condo listings: 1430 (1422, 1388, 1317)
Homes 4-week running average: $374k ($371k, $368k, $366k)
Condos 4-week running average: $228k ($225k, $219k, $213k)
Three sets of stats in two days, I think that about covers it!
Edmonton real estate listings and sales
Edmonton real estate prices
Have a great weekend!