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 (418, 474, 423)
# Sales: 300 (252, 203, 271)
Ratio: 62% (60%, 43%, 64%)
# Price changes: 276 (196, 252, 253)
# Expired Listings: 134 (138, 110, 348)
# Withdrawn/terminated/etc. listings: 71 (16, 36, 40)
Net loss/gain in listings this week: -19 (12, 125, -236)
Active listings for single family homes: 2522 (2503, 2486, 2446)
Active listings for condos: 1987 (1991, 1995, 1976)
Wicked! Spring officially arrived this week. With the street sweepers working like crazy and daily temperature changes in the double digits (both directions), plus the odd sprinkling of snow, you know it's spring in Edmonton. Here’s a few other signs that Spring has hit the Edmonton real estate market.
- We’ve been busy retaking photos of our listings to replace the pictures with Snow.
- You can actually see the yard of the property you're buying with the snow gone
- Open House signs start popping up like pimples
- People are setting up appointments to see properties much later in the day (hence I think the seasonal sales pattern we have is more tied to daylight hours than just the weather).
Again we see the sales to new listings ratio sitting in the 60% range with solid sales. The inventory actually dropped slightly which could indicate we will see the peak in April this year.
Looking at the numbers reported by the Realtors Association of Edmonton, so far there have been 1302 sales this month, which should put us over 1600 sales by the end of the month (compared to 1823 last year and 1380 last month).
There may be a trend starting – for the past two months single family home sales within Edmonton are higher than last year, while sales outside of Edmonton are much lower, bringing down the overall number.
The over all average residential sale price is sitting at $311k (up from last week and the same as last month), single family homes at $351k and condos at $235k (both up slightly from last week and last month).
Happy Weekend (looks like the spring weather might finally arrive next week)!
It makes sence to me that sales are picking up.
From what I have seen of experts forecasts for Alberta/Edmonton over the next year…..we are looking at flat, or a couple of percentage points drop in prices.
I’m seeing mortgage rates at 3.62 for 5yr fixed….which surely is at or near bottom.
Edmtonton (along with Montreal) is Canadas most affordable large city.
If I was in the market for my first home…..I;d be (estimating) the maths of comparing the savings I’ll make over 5yrs from taking a fixed mortgage at 3.62%……versus the potential risk of a few % points downturn in prices (as well as the fact that there is some great selection out there at the moment…and it doesn’t look like it will last)
Experts forcasting a couple of percentage points drop in prices?
I don’t think that a single canadian economist forecasted the 15-20% drop that we’ve already had. So I don’t know how much faith I would put in them saying things will flatline now.
Low mortgage rates are definitely having an effect though. You can get 5 years fixed for 2.8% at several banks around Edmonton. Variables for 2.25%.
As per my inference peak MLS inventry was Mar 2009 and is very good for the Real Estate Market.
Thanks
Anil Chopra
Nate:
Could you please tell us which banks are offering 2.8% for a 5-year?
I haven’t seen anything like that.
My mistake GM. The 2.89 was an offer to customer with a 1.4% variable that wanted to lock in.
I check the mortgage rates posted here: http://www.redflagdeals.com/deals/main.php/financial/rates/
That website also has a mortgage rate discussion in their forum where people post the latest rates that they have been able to negotiate with the banks. In that discussion a few members have secured a 3.5% rate at TD and HSBC.
3.5% ?? thats quite good. I am not sure whether TD offers that though. TD recently offered me 4.19??
Nate care to name any of these chartered banks. ING direct usually has the lowes rates. Their 5 year rate is listed at 3.89 fixed. I would like to show my mortgage broker these rates so she can match mine.
I am wondering where do you get 2.8% for 5 years unless you are the lender. If it’s for real please share it.
My wife is a mortgage planner and the lowest 5 year fixed she can get is 3.81%. Anyone looking for a mortgage really should be going through a mortgage planner as they can shop for the best deals for you (my wife’s brokerage has over 50 lenders they work with).
funny, how people are getting all these numbers, I work with lot less than 50 and offer 3.69 for 5 years with 20% pre-pay option as well. For 1 year I have seen lowest 2.90.
article for investors
http://www.ozziejurock.com/insights/article.asp?id=8799
PC Financial offers a 5 year variable for 3,05% NO limit on pre-payments!
That is the best 5 year term out there. Better switch and lock in folks!
Renu, yourself being a mortgage planner,should understand that my point was anyone being offered 4.19% through their bank should be able to shop around and get a better rate by simply going to a mortgage broker.
5 year variable for 3.05???
HSBC has a posted 2.75% for 5 year variable, might even be able to negotiate that down some more depending on your credit.
They also have a 3 year fixed for 3.3%
http://www.hsbc.ca/1/2/en/personal/todays-rates/personal-mortgage-and-credit-rates
sorry for the misunderstanding, yes, you are right.
According to the Edmonton Real Estate Board, 3,185 residential properties sold, in the 1st Quarter of 2009. Of those, 186 (or 6%) sold for $500,000 or more.
This does not compare favorably with properties in the $500K+ range making up about 30% of the total inventory currently on the market.
It gets worse the higher up you go.
17% of the inventory has an asking price of $700K+, while that price range only accounted for 1% of all sales in 1Q.
As much as I would love to move up into that price range again, it does not seem to make sense, if I want to maintain the flexibility of moving away from Edmonton, should the need arise.
In that case, I might be sitting on an elephant that just won’t move….
It seems to me the money coming into our mortgage market and the pent up demand with the lower prices are taking this market out of the hole. Our market in Bergen County New Jersey, had fallen ablout 20% from the top. We are busy now, it is happening!