I don’t think there has been a day this week that Sara and I have finished before midnight. Even as I type this I’m on messenger with our associate Lisa discussing details of the day and what’s coming up.
I noticed a listing came on the market that we had competed for, and I had to chuckle that the agent they had selected had his own company spelled wrong on his web page. So I guess marketing isn’t that important after all. I’m sure they pay more attention to details on other things.
The day started when I pulled the hotsheets (I seldom do this but since my daughter wasn’t in school this am, I had a few extra moments):
- about 4500 homes and condos for sale in Edmonton (not incl surrounding areas)
- about 1470 sales since June 1 Edmonton only
- about 400 price changes (I think 1 or 2 were actually price increases but I didn’t audit them) over 7 days. Don’t ask me why I changed from 30 to 7 days. Not enough caffeine I guess.
It made me wonder when most agent’s websites (which actually all say pretty much the same thing except for ours I’m happy to say) will change their headlines from "New Listings" to "Hot Deals of the Week." Funny thing about Sara, with her background in marketing and training is that she is completely consumer centric. She tells me that people don’t want to see my mug on everything and I whine that thoust is the wayst it hath been done since God purchased the third rock from the sun (true story my dad has actually been selling real estate so long the he handled the transaction – he almost backed out when he found out it was mostly swamp land). That is why you don’t find my mug shot all over our home page.
Ok enough side tracking…back to the stats. It’s too late for me to work it out now, but I can honestly say we’ve changed our marketing strategies. No longer will it be a given that every property on the MLS will sell. Even with the spattering of multiple offers there wouldn’t be 400 changes in price in a month if everything was selling. And as I found out today, if you do get a seller who understands the new reality in Edmonton, their friends and family will tell them they sold too low. Plus, the buyer’s family is saying "are you nuts?" for buying right now.
Ah things are almost back to normal…We just have a supply issue to deal with and then its all good. Market adaptation can be a hard thing. Sellers have become very complacent…The time of the buyer is upon us again. At least until the July surge in sales eats all the inventory…lol…Schools out folks…This is a good time for people who bought good properties in good areas to congratulate yourselves…You will be less affected. Do I still believe that things will correct themselves and then return to more normalized growth? I sure do but I’ve been wrong before…Hell for as often as I’m right I could be a Sun columnist – at least then I wouldn’t have to check my facts.
On a somber note. A year and a half ago my best friend since kindergarten passed away. Today I was at the same funeral chapel for the funeral of his 27 year old nephew. It’s unfortunate that it takes events like a funeral to make us really think about what’s important. Like hugging your kids, calling that friend you haven’t seen in ages for lunch or letting your parents know you appreciate them. (sniff) So to Troy and all the family my heartfelt sympathies for such a tragic loss.
Hi Sheldon, just a couple of questions on the current market in Edmonton. Do you think the three large condo conversions downtown (Lamplighter, Hargate, and Grandin Tower) are putting a damper on price appreciation in zone 12? It seems that prices have been flat downtown since all these listings appeared on MLS while other areas of the city saw values increase. Also, I know you said there is increased competition among sellers in all price ranges, but I still see very little on the market in Ritchie, Capilano, King Edward Park, and other nice but affordable neighborhoods. Also, now that it costs around $400,000 for any decent detached property, how are your buyers getting the financing or the down payment for their purchase? Are they financed by their parent’s or maxed out with 40 year mortgages? Even a decent income of 50K/year only qualifies a person for around 170K on a 25 year mortgage, so I’m curious how people are finding ways to buy $400,000 homes.
Some areas and prices ranges will be more affected. Not all downtown condos will are going to be affected the same way.
The areas you mentioned had maybe 20 – 30 listings a year ago and now have 60…Things are back to normal there…things downtown are a little out of whack…But not all of the downtown inventory will be absorbed.
Very few people I am seeing are going for 40 year mortgages…but going for a 40 year mortgage in and of itself is not bad.
hypothetically. Qualify for the 40 year. make payments based on the 25 year amort. The difference will go directly ot the principle and actually help you pay your mortgage off faster.
This will make your principle balance lower when it comes time to renegotiate your mortgage.
I won’t argue that affordability is an issue though. People will either adapt or resist. If resistance is stronger than adaptation then there will be pressure on pricing.
Hi Sheldon or Sara,
What would be the best move with the current market condition, to buy first then sell or sell first then buy?