I would love to give you an explanation for what's happend with real estate sales in Edmonton, but I just don't have one. Last month we had the fewest sales we'd seen in April in years, and this month we saw a big jump in sales and the first month with more sales than last year. Back in March I predicted that we would see more sales than last year in May or June, and I have to admit I was a little nervous about that prediction last month, but it appears to have worked out as I predicted. We'll have to wait and see if the second half of my prediction comes true (that prices would be higher than last year by August or September).
“There is a wide range of property on the market right now but it is turning over quicker than in recent months,” said REALTORS® Association of Edmonton President Chris Mooney. “The local economy is picking up, the demand for labour is increasing but the national situation is keeping interest rates low. We anticipate increasing prices and sales through the summer ahead as we originally forecast.”
Edmonton real estate sales
The average sale price did increase slightly in May to $331,974 from $327k in April but was down 2.4% from last May. The median followed suit up $2500 from last month to $317,500 but down from $321,500 last May.
Average real estate prices in Edmonton
The number of new listings continued to increase in May, and based on the activity we are seeing in our office I wouldn't be surprised if this continued in June.
Edmonton real estate listings
The inventory also increased in May, but is still below the levels we saw last year:
Edmonton real estate listing inventory
I received a question about what phase of the sales cycle we are in - if you remember a few months ago I introduced the idea of a sales cycle as a way of predicting what prices are going to do. If sales are increasing on a year over year basis, prices will follow, if they are decreasing, prices will flatline and then start to fall:
Sales Cycle
So, after a number of months at the bottom of the cycle (phase 5) with lower sales and average prices, we have moved into phase 7 - higher sales but lower average prices:
I love the detailed monthly stats that you provide for homes for sale. I view them weekly and compare against the Edmonton rental statistics that RentersOnline provides.
http://www.rentersonline.com/rental-stats/
It seems that both home sale prices and rents in Southeast and Southwest have done well in the last year.
I’m just not sure if it’s the right time for me to buy, or continue renting until winter when the market slows down a bit.
Perhaps the spring construction season has begun could explain the pickup in sales numbers….. The building trades have settled contract negotiations for most of major oilsands work coming in the near future up to a 4 year deal and spring turnarounds are full bore ahead with Suncor Edmonton, IOL, Shell, Agrium Redwater, Suncor Ft. Mac, CNRL shutdowns in full swing plus Husky and Syncrude ready to go in the coming months… Uncertainty in the industrial construction has been fixed and people are beginning to spend with their big shutdown cheques… Keep in mind while sales will stabilize if prices can remain the same or drop as these trade unions in good faith to stabilize the oil patch signed for no significant raises this year; future raises will depend on oil price and inflation CPI…
Well, I think houses are not going to go up as high as they were anytime soon. The realestate market in Canada is in a downward trend as far as prices are concerned ( except Vancouver which is on an upward trend but it doesnt really count as its market is driven by immigration. ) Dont be so quick to buy this summer in Edmonton ,wait it out as prices im sure are going to decrease more. Its a buyers market in Edmonton right now and I think it will remain like that. Foreclosures are up in Edmonton and apparently are increasing every year as people paid too much for their house 3 or 4 years ago, and now they have decreased in value, so if they want to sell, they really cant as they will lose too much money , for they paid too much to begin with. So rather than owe the bank extra money , some people just foreclose. Gone are the days of buying a house in Edmonton and then flipping it 3 months later. But im glad for the downturn. Finally, back to reality for the agents and the developers and investors.
The Mortgage Bankers Association’s Delinquency Report is showing the 30-plus-day delinquency rates on CMS loans are also rising.
“What we are seeing now is a recipe for disaster in the commercial real estate market for company. “A large number of balloon loan payments for commercial property loans are coming due in 2010 and 2011. In the residential arena we know pay option arms are also due to recast in 2012. The vacancy rates are at high levels for multi-family, the unemployment soaring higher and commercial property values plummeting, commercial property owners are not going to be able to service their debt without serious commercial loan workouts of their loans and business. Property owners need to prepare now in order to avoid default.” Real Estate in Alberta truly is the worst investment by far.
Article Source: http://EzineArticles.com/3478633
I totally agree with you Darryl
Darryl, your source article is for US. The only addition that you made is that you added the last line “Real Estate in Alberta truly is the worst investment by far “. How did you made the comparison?