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.
this will be a hilarious shouting match…
What is your advice for first time home buyers after seeing these data?
My advice to the first time home buyer is to keep renting. Home buying is only for investors like me.
I need someone to pay the mortgage for the rental that I have so I can pay it off, and retire comfortably.
Wow nice to know that some “investors” are still solvent!
To the first time home buyer:
Hurry, because if you don’t buy now you’ll have to buy for less in the future!
Ron S, buy now or forever hold your breath!
The housing market is very normal, its went from relaxed state to being sleepy. How can you not be sleepy when you’re really relaxed.
Hi Ron,
This guy can answer your question
http://www.youtube.com/watch?v=XJlaEtZ7zT0&feature=player_embedded
Hey, that’s my realtor. I bought the house from him.