Is it just me or did June just fly right by? It sure was a busy month for us. Anyway, I’ve put together our market trend report which shows some interesting trends. First, and most obvious, the cheaper the property the faster it sells, and the closer to list price it sells:
Lets dig a little deeper though… Compared to last month, the number of sales are down, and the number of listings are up….way up, especially in the higher price ranges!
List price to sale price ratio is very slightly down across the board, and number of days on market is longer in all but one price range. To be honest, I thought the number of days on market would be even higher for June until I realized, all those listings that haven’t sold yet aren’t included in the days on market tally since they are still on the market. So, I would expect to see a larger increase for July’s days on market average.
Overall this looks like a much more "normal" market than what we’ve seen of late, and it looks like we are in a buyers market. It is definitely the best time to buy that we’ve seen in the past two years. These numbers are all preliminary though, because of the way sales are reported and because of the long weekend it could be Wednesday or Thursday before all of June’s sales. We’ll have to wait for the press release from the Edmonton real estate board before we know the full picture. Also keep in mind the market trend report is only for Edmonton proper, while the stats from the board include the entire area.
Hi Sheldon,
Thanks for the timely stats. Why are stats only following a press release if I may ask? I will be dead with anticipation by July 5! Used to be hard enough to wait for month end!!!!!!!
Like someone asked, please share how people are affording 400K? We certainly could use help in that area!
Fencesitter,
Mortgages have changed considerably with new competition in the mortgage insurance business (Genworth). This explains how people could get more financing now than in the past to bid prices higher but not how they can afford it.
Interest only:
http://www.truenorthmortgage.ca/index.php/screen/interest_only
Self Employed:
http://www.canequity.com/mortgages_for_self_employed.stm
No Income Documentation
http://www.truenorthmortgage.ca/index.php/screen/self_employed
Last year the debt ratio limit was increased
http://truenorthmortgage.blogspot.com/2006/10/mortgage-affordability-ratios-change.html
Thanks very much for answering Fencesitter’s questions Bearclaw!
As for the delay in reporting the stats…When a home sells, many agents report the sale by phone or fax, and then the real estate board manually enters the sale into the system. This means it can take a few business days for all the dust to settle. In addition, the board is able to compile and define the statistics by directly accessing the data whereas we have to go through a rather antiquated program to get at the info, and it limits our ability to get to the meat of things. We will get the stats up as soon as we have them, with our graphical analysis of the trends that you won’t find anywhere else.
Thanks again for reading!
Sara.
I follow the duplex market in SW Edmonton quite closely. Most of the newer units (1-5 years old) are between 360-400. I have not noticed any dip in the prices recently? Of course as pointed out in this blog this specific price range may be a little stronger because of the affordability factor. I still suspect duplex prices will hold in this specific area for a few months and then start to increase slightly again. I would suspect the condo market will be similar. As for the higher priced single family homes they may see more of a correction but again in the longer term (5 years) I suspect prices could still gain another 25 percent from here? Just my best guess? I know people think that is crazy to add another 100 grand from todays prices but I for one believe it will happen!
Hi Sara and Sheldon,
Thanks for the excellent information. I was wondering if you could share more details on your typical buyer(s) in this new market. I’m still not clear how people are able to afford $400,000 homes. Is there a typical buyer out there who you could describe? For example, are they selling a condo and moving up market or are they selling other assets for the down payment? The reason I’m asking is that most people I speak with will say that if they didn’t buy last year or prior, then they couldn’t afford their current property, myself included.
I would have to say that there is no average buyer. If you are not in the real estate market in Edmonton already, then need cards up your sleeve to get in. It’s just too expensive. I was trying to buy a condo 6-8 months ago on my own, but the multiple-offers and overnight price increases for CRAP was overwhelming and I ended up renting for half a year. Now I am ready to shop again but I need a cosignor! The economy is slightly off-balanced as far as housing, cost of living, gas and average wage or salary, etc. It makes it tough for the “average” like me.
TanR