Edmonton Real Estate Market Weekly Update – Sept. 3, 2010
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 487 (425, 486, 462)
# Sales: 252 (187, 217, 222)
Ratio: 52% (44%, 45%, 48%)
# Price changes: 342 (346, 354, 344)
# Expired/Off Market Listings: 559 (260, 250, 227)
Net loss/gain in listings this week: -324 (-22, 19, 13)
Active listings for single family homes: 3198 (3392, 3360, 3319)
Active listings for condos: 1963 (2119, 2182, 2176)
Big jump in sales this week… we thought things seemed busier, at least it’s busier around our office. Everything seems busier at this time of year though.
Edmonton Real Estate Market Sleepy in August
The official numbers have been released (the numbers I reported yesterday were just for Edmonton, not the entire board) showing small price drops across all categories. The average single family home dropped slightly for the second consecutive month in August after having plateaued at just over $388,000 from March to June. Condominium prices have dropped steadily from their high point of $253,000 in April and are down another 2.99%.
“Despite the two month drop, single family homes are still priced a bit higher than they were at the same time last year,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “There may be bargains in the condominium market as prices are about $10,000 less than a year ago, on average.”
The average sale price for single family homes was down 1.96% and sold for $372,253 in August. Condominiums dropped in price for the fourth consecutive month and sold on average for $232,230 in August.
Residential sales in August were down from the previous month at 1,195 as were listings at 2,700. The sales-to-listing ratio was 44% and the inventory increased to 8,822 units at the end of the month. The average days-on-market was up six at 57 days.
The number of new listings slowed down to the level we expect for August:
Even with slower listing activity inventory is still relatively high for the Edmonton market at this time of year and is fairly close to the record levels we saw in ‘07 and ‘08. We believe inventory should continue to drop this fall. We are seeing more and more sellers with unrealistic or unattainable expectations dropping off the market. They are either renting their properties out and/or postponing their move.
This is my favourite graph. This year it shows a rapid increase in inventory along with price gains. How does this happen if not artificially by low interest rates? Regardles of your view of the market bear or bull my perspective is that it has to correct itself. My expectation is average prices should return to where they were at the beginning of the year.
“Although the market has quieted this summer the inventory is being constantly refreshed,” said Westergard. “Our 3,200 REALTORS® are listing 50 to 100 properties every day and wide choice is available in all areas. We don’t expect a big push this fall but homes are selling although the sales cycle is longer than many sellers would like.”
I would say that there is certainly an abundance of choice, but not when you drill down to certain sought after price ranges and property types. Any buyers in the 300,000 – 350,000 range are still seeing properties sell quickly and in some cases with multiple offers. This activity around the base of the average price is likely what will keep the average up while sales appear anemic.
Bubble or no bubble? Two research groups sound off… Plus Edmonton Market Stats for August
Before I get to the stats for August I do want to discuss a couple of reports that were released this week. The first by a "centre-left" think tank about the Canadian housing market. The report called "Canada’s Housing Bubble – An Accident Waiting to Happen" suggests that at least 6 of Canada’s major markets are heading for major correction. And the second from the C.D. Howe Institute called "Not here? Housing market policy and the risk of a housing bust" says we are not in bubble territory.
Both articles are well worth reading and predict different outcomes from our current economic situation. The first study suggests that easy money and low interest rates have created a bubble. They think we are in a bubble because between 2001–2006, all major housing markets in Canada shot to well above the $80,000 average (in 1980 dollars) that had been the norm for 20 years. They also suggest that Edmonton is one of the worst cities, because much of the increase in prices was fueled by the condo market.
Most forecasters have called for prices to drop marginally over the next two years, followed by years of stagnation. The second report says that our tighter lending policies "worked well in reducing the possibility of a housing bust in Canada during 2008-2009, and continue to mitigate the risk of a massive wave of defaults in the future.”
The two reports are not completely opposing views – one says we are in big trouble, the other says it’s not great, but it’s not that bad either. Both reports suggest that if the banks raise mortgage rates gradually (slower than the bank of Canada rates), and policy makers keep lending rules tight the damage will be mitigated.
Edmonton’s Real Estate Market in August
It was more of the same in August in Edmonton – relatively slow sales and high inventory. Single family homes out-performed condos this month as sales of single family homes stayed almost in line with last month:
The average sale price of single family homes increased slightly from $388,549 in July to $390,893 in August. Condos on the other hand dropped from $237,112 to $229,358 in August:
A similar trend was seen with price per square foot with single family homes increasing from $264 to $267 and condos decreased from $235 to $225/square foot.
As has been the trend for a number of months home owners got a smaller chunk of the asking price with the list to sale ratio dropping for both condos and single family homes.
Looking at all of this from a seasonal perspective nothing is really out of the norm…sales tend to slow and prices tend to decline in the second half of the year. We could see a "blip" in September as we have seen in the past two years, but if we do it will just be a blip…not an indication of an improving market.
A Beautiful Day in Edmonton
A few weeks ago we had an amazing day in Edmonton and I just have to share it with our readers. I arranged a canoe trip down the North Saskatchewan for a group of friends and family and it was incredible. Our river valley is a natural wonder and adds so much to our city. Seeing the parks, neighbourhoods, bridges and the downtown skyline from the river gave me a completely new perspective. It is so quiet and peaceful, it’s like stepping back in time.
It was also the 50th anniversary of a very memorable trip my dad took as a young camp councelor in 1960 when he paddled over 200 miles from Rocky Mountain House to Edmonton in 4 days. Being from Ontario he hadn’t been back on the river since, and it was a very special day for my parents and me. So thanks to the city of Edmonton for keeping our river valley beautiful and I highly recommend a trip down the river to anyone! Contact Edmonton canoe for info and options, they were great!
Edmonton Real Estate Market Weekly Update – Aug. 27, 2010
Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:
New listings: 425 (486, 462, 435)
# Sales: 187 (217, 222, 191)
Ratio: 44% (45%, 48%, 44%)
# Price changes: 346 (354, 344, 324)
# Expired/Off Market Listings: 260 (250, 227, 494)
Net loss/gain in listings this week: -22 (19, 13, -250)
Active listings for single family homes: 3392 (3360, 3319, 3287)
Active listings for condos: 2119 (2182, 2176, 2182)
I was talking to an agent the other day, who was taking his clients for a second look at one of our listings and hoping they would write an offer. I thanked him for showing it and was joking with him a bit about the market and he said "people are so nervous about the market I can hardly get them write their names on a napkin let alone an offer to purchase!"
When you look at the sales numbers this week you can see that not that many deals are going together. So the question in my mind is: what happens in September? It used to be a guarantee that September was a slow month, but in ‘08 and ‘09 the market actually picked up in September.
The REALTORS® Association of Edmonton is reporting 1091 sales so far this month, which should put us close to 1300 for the month. The average residential sale price sits at $326k (down from last week and last month), single family homes at $371k (down from last week and about the same as last month) and condos at $233k (up from last week but down from last month).
Have a great weekend!
What Real Estate is Selling the Best in Edmonton?
One way of determining demand in an area, or for a type of property is to look at the absorption rate. The absorption rate tells you how many months it will take to sell the current inventory if the sales level remains stable. I have broken the Edmonton real estate market into a number of categories based on location and property type and analyzed the absorption rates for each category.
The shortest absorption rate of just over 5 months is in St. Albert, closely followed by Millwoods, Sherwood Park, and the University area which are all under 6 months of inventory. Bungalows, and properties under $400,000 are also under 6 months of inventory. At the other end of the spectrum are properties asking more than $700,000 and homes in Stony Plain with over 13 months worth of inventory. The longest absorption rate within the city limits is the far west with 8.26 months supply.
The overall absorption rate for Edmonton single family homes and condos is 6.58 months, making it a buyer's market. When considering the numbers below it is best to compare them to the overall average rather than one to the other. If you're considering selling your home looking at the absorption rate for your neighbourhood is an important part of pricing your home properly.
Here is how it all breaks down:
And here is how I broke the city up into different areas:
Edmonton Real Estate Market Weekly Update – Aug. 20, 2010
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 (462, 435, 456)
# Sales: 217 (222, 191, 198)
Ratio: 45% (48%, 44%, 43%)
# Price changes: 354 (344, 324, 341)
# Expired/Off Market Listings: 250 (227, 494, 174)
Net loss/gain in listings this week: 19 (13, -250, 84)
Active listings for single family homes: 3360 (3319, 3287, 3454)
Active listings for condos: 2182 (2176, 2182, 2253)
The REALTORS® Association of Edmonton is reporting 818 sales so far this month, which should put us somewhere around 1300 for the month. The average residential sale price sits at $328k (down from last week and last month), single family homes at $372k (down from last week and about the same as last month) and condos at $230k (down from last month).
Have a great weekend!
How Great is Your Curb Appeal? 22 Tips for Home Owners
Today we have the first of a series of articles written by Rhonda Wilson, of Revealing Assets Home Staging and Decluttering Services. We have partnered with Rhonda to ensure our listings look their best and attract more attention from buyers. I can say from experience that Rhonda knows what she's talking about when it comes to preparing a home for sale, and many of our satisfied clients will attest to that.
Edmonton Home for Sale with great curb appeal
Curb Appeal, simply defined, is the overall presentation of the exterior (all sides and angles) of a property.
A property with a well-maintained and cared-for exterior tells buyers that the sellers have paid great attention to detail, have loved this home, and have taken pride in ownership. The state of a property’s curb appeal literally sets the stage for the overall impressions made on the buyer. Great curb appeal piques the buyer’s curiosity in a positive manner. If you impress the buyer outside, they are going to open that front door in a very positive frame-of-mind.
On the flip-side, if seemingly small details are overlooked outside, you have successfully caused the buyer to immediately question whether the interior of your property has been loved, maintained, or cared-for. This is not a good place to start with the psyche of the buyer. There are a lot of important details home owners can miss when it comes to curb appeal; ask yourself these questions before putting your home on the market:
1. Are all of your exterior light fixtures in good working order? Are there any bulbs burnt out? Could any of the fixtures use some touch-up painting?
2. Are your address numbers clean, clear, and easily seen from the curb? How easy is it for Realtors® and buyers to find your home? Is there any foliage blocking the view of your address from the curb?
3. Do you have pets? Is there any animal waste on your lawn/property? Have animals belonging to neighbours used your yard as a latrine?
4. Is the exterior of your home “Season Appropriate”? Are Christmas lights still up in the Spring/Summer/Fall? Are some of your Halloween decorations still lingering? You get the point.
5. Buyers will drive around to the back of your property. How does it look back there? Is the alley free of debris? Did the garbage-man miss collecting something? Have you been using your yard as storage? Would it look better if you were to rent a “POD” for excess storage? How clean and well-maintained is the garage exterior?
6. What is the state of the lawn/landscaping in the back-yard?
7. Is there evidence of pets strewn about? Have toys been collected and tidied up?
8. Have you pressure-washed the exterior of your home?
9. Are your sidewalks, planters, and driveway all in good repair and clean/clear of stains and debris?
10. Are there any boards or pieces missing from, or damaged on your fence?
11. Are weeds taking over the yard in any spots? Have you removed all dead or dying foliage on every side of your home and in your yard?
12. If you have a storm door, is it hanging straight and in good repair?
13. Could your exterior door use a touch-up paint job? What about the trim around all of the windows?
14. How are your eaves-troughs? Are they all hanging straight, fastened well, free of leaves and debris, and in good operational condition? If painted, has the paint started flaking off anywhere?
15. Are your window wells around your basement foundation clean and free of debris?
16. Are the exteriors of all of your windows clean?
17. Do you have steps leading up to your front door? Are they in good repair? Are they level? How is the railing if there is one?
18. Do your exterior doors open and close properly and effortlessly? Or is there an issue with fit?
19. How does your mailbox look? Is it clean, hanging properly, and not needing paint? If it is quite bad, replacing it makes a great impact! If it is full of unopened mail, remove it.
20. Do you have any colourful landscaping in place in the front of your property? This can be very inviting to buyers as long as it is maintained. Also a great touch is placing a planter with colourful and seasonal flowers right outside your front door, off to the side, or if there is enough space, one on each side of the door for balance is also great!
21. Do you have a “welcome mat”? If so, is it clean and in good shape? If you don’t have one, grabbing an inexpensive colourful one creates a welcoming message, and shows you care about whether dirt gets tracked into your foyer.
22. If you have a door-bell, buyers/Realtors® will instinctively ring it. Does it work? If not, replace or repair it.
If you've answered "yes" to any of these questions it's time to roll up your sleeves and improve your curb appeal!
Bonus tips - Here are two great curb appeal tips to keep in mind while you're home is for sale:
Try to NOT park in your own driveway. Buyers can more easily envision “coming home” at the end of a day if they can park in your driveway for the viewing. With the seller’s vehicle in the driveway, it is harder for the buyer to see it as their own “home”.
Get in the habit (or set a timer if available) of turning on all exterior lights as soon as dusk sets in every day. This ensures that buyers/Realtors® can still easily identify and find your home, even in the dark. It also shows off the fact that the fixtures are all in good working order and maintained. You are also showing pride in your Curb Appeal!
Rhonda Wilson – CCSP™
Owner/Operator of Revealing Assets Home Staging and Decluttering Services
RevealingAssets@shaw.ca
We transform properties into highly sought-after products that sell in half
the time and for 7-10% more money. Through personal experience, extensive
research and training, and a compassionate approach, we De-clutter living/work spaces for up-lifting and positive life changes.
Edmonton real estate market weekly update – August 13, 2010
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: 462 (435, 456, 492)
# Sales: 222 (191, 198, 276)
Ratio: 48% (44%, 43%, 56%)
# Price changes: 344 (324, 341, 390)
# Expired/Off Market Listings: 227 (494, 174, 221)
Net loss/gain in listings this week: 13 (-250, 84, -5)
Active listings for single family homes: 3319 (3287, 3454, 3395)
Active listings for condos: 2176 (2182, 2253, 2232)
The REALTORS® Association of Edmonton is reporting 501 sales so far this month, which should put us somewhere around 1200-1300 for the month. This would be an improvement if you consider sales in August are usually considerable lower than July, but you also have to consider that July's sales were quite low. The average residential sale price sits at $333k (up from $3k from the end of last month), single family homes at $378k (up $8k from last month) and condos at $229k (down a lot from last month - there have only been 142 sales so far so I wouldn't read too much into that).
Have a great weekend!
University Area Condos For Sale
UofA
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