I can't believe it's June already, May just flew by! What a crazy month that started with snow and ended with the warmest weekend of the year (so far) and the most MLS® sales except for the boom years. Sale increased significantly over last month and last year:
It seems that single family homes in Edmonton saw the largest gain in sales while sales outside of Edmonton have also steadily increased:
The overall average residential sale price increased 4.5% to $326,332, which is still down 4.2% from last May:
Looking at Edmonton only, you can see single family home prices rose more than condos:
More info coming as soon as the Realtors Association of Edmonton releases the full monthly report!
While I want to feel good looking at the sales and price increases for May, I am left with an uneasy, hollow feeling that none of this is right. To me, buying right now, sort of feels like that last shot of your favorite alcohol your buddy buys you at the bar at 2 am. In the moment, it makes you feel good and smile as your intoxication is enhanced. But deep down, you know that it was a mistake and you will pay for your excesses at some point in the near future. In the back of your mind you wonder how bad the hangover could be.
Have another drink George. The feeling of unease will pass.
George have a drink and then go buy your home. If the uneasy feeling doesn’t dissapear then keep drinking.
haha, great analogy George!
I believe there’s a fair bit of truth in what you say!
As predicted RBC raised rates today, posted rate for a 5 year fixed is now 5.45, I’d expect the rest of the big 5 to follow suit. It’s too early to say if rates will continue rising, but as they do we should see the housing market better resemble the current economic fundamentals. Most of the discount lenders have also raised rates with the discount mortgage benchmark rising to 4.15% (Still only .2% above the lowest rates in Canadian History).
For those not with RBC now may be a good time to lock in.
George – couldn’t have put it better myself. Alberta housing has been inflation central and it can only end badly. I’m not about to bend over and buy now.
Great news to hear your real estate market is picking up. The home market and home construction market drives both our nations in so many ways. I’ve read mortgage rates may be easing too.
The Edmonton Realtors Association update for May is out, and guess what, we better buy now or be priced out forever! It says: “So house hunters should be making their buying decisions sooner rather than later to ensure that their buying power is not eroded by the rising prices.”
Evidently the Realtors Association is unaware of seasonal trends in the Edmonton market, here are some Quotes from their May press release last year:
“Never been a better time to buy a home says REALTORS® Association”
“The year-to-date average residential price is up 1.6% from the same five month period last year. I can see. “I am sticking with my forecast for a 4% price increase through the year for both single family and condo residences.”
prices continuing to rise,” said
I believe the Realtor Code of Ethics says something about full disclosure, I believe they are failing to disclose impact of seasonality and low interest rates. Fact is real estate prices almost always peak around now and then go down – at least according to data they post on their stats page. Yeesh.
touche’
EREB is like CREB… remember they must promote their members and the industry, no?
personally, I cannot see prices going up anymore. This is not the bottom yet…
Between June and September two things will happen:
1. prices go south , erasing all 2009 gains
2. sales go down, supporting price declines
We will finish the year at -5% prices wise compared to December 2008.
In 2010, status quo in prices, and yes, expect another spring rush.
The Canadian Realtors Association actually predicted an 8.5% price decrease in Edmonton on May 14th, they used economists to come up with this number and it is credible. The Edmonton Realtors are indeed a marketing association but they believe their value is in providing insight and expertise that a person buying or selling on their own would not otherwise have, as well a strict code of ethics. If you review two years of press releases you’ll find almost every prediction is wrong, they switch the data points they use each month depending on what that month’s spin is, and don’t share the whole picture. So is it marketing? Yes. Does it reflect insight and expertise? No. Is it ethical to try and manipulate the market by releasing press releases with what’s, at best, disinformation?
You’ll notice other Real estate Boards (say the Calgary Real Estate Association) share the same data points each month and don’t provide all the spin, some even concede that prices are expected to go down. There are only a handful left that view consumers as ours does. I’ve met some very good Edmonton Realtors, but the broader association does these people little justice.
If you have a feel for the ebb and flow of the real estate market, you have your hand on the pulse of the economy at large. Whether you are looking to buy or sell property,