Edmonton Real Estate Market Weekly Update – April 27/12

EdmontonRealEstateMarketUpdate
Edmonton Real Estate Market Update

Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days:

New listings: 536 (515, 493, 515)
# Sales: 311 (314, 245, 273)
Ratio: 58% (61%, 50%, 53%)
# Price changes: 285 (260, 267, 197)
# Expired/Off Market Listings: 66 (125, 82, 237)
Net loss/gain in listings this week: 159 (76, 166, 5)
Active single family home listings: 2924 (2831, 2809, 2714)
Active condo listings: 1887 (1836, 1764, 1696)
Homes 4-week running average: $393k ($394k, $392k, $389k)
Condos 4-week running average: $234k ($232k, $230k, $232k)

I would describe Edmonton's spring real estate market this year as fairly typical thus far - certainly when compared to the last 5 years as far as sales go.  In certain cases it's difficult to make sense of what the values are since in some areas we are constantly dealing with multiple offers and in others there's very little activity. Sellers can be stubborn about reducing their price when they hear their friends in another area of Edmonton received multiple offers and (according to them) their friends home was way over priced.

Last week we had one multiple offer $30k over list price in Devon and our client still didn't get the property (actually that's a bit of a relief). A property I was supposed to show today that was listed a few days ago in the Riverbend area sold in the high $500's - $19k over list price.  I caution you: this is not the norm for the entire Edmonton market, certain areas and types of housing are in higher demand than others. 

One property we have had listed in Sherwood Park for sometime had no offers in 6 months and we have now had six and counting. If you are a buyer not interested in competing I'd suggest waiting until the fall market, or moving out of the hot zones.  The only downside to that plan is there are often fewer properties on the market as well at that time so selection is reduced.  As it's shaping up it could be a pretty hot summer for single family home sales, and I'm optimistic that we will see improvements in condo sales as condos look more attractive and less over heated.

April2712
Edmonton real estate listings and sales
April2712Avg
Edmonton home prices

About 

Sheldon is very familiar with the ins and outs of real estate; he has been licensed to sell Real Estate in Alberta for over 20 years. Sheldon has served on the Real Estate Council of Alberta, the Real Estate Insurance Exchange and the REALTORS® Association of Edmonton. Find Sheldon on Twitter @edmontonsheldon.

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43 Responses to “Edmonton Real Estate Market Weekly Update – April 27/12”

  1. Inspector GadgetNo Gravatar 27. Apr, 2012 at 1:22 pm #

    As always thank you for the information S and S.
    As for bidding wars…all I can say is wow. Anyone with so little respect for hard earned money (actually credit I would guess in most cases) to get in to a bidding war for a house deserves to overpay.
    There is no shortage of housing, only a shortage of patience and a big shortage if common sense.
    I own a lot in a very desirable area that people will fight over when I choose to sell it, but it was very easy to get. I bought when no one else was. No line up, no bidding war, no rush, and paid less than asking.
    Likely the same people that wait in line for an IPad are getting in to these bidding wars.
    Anyone paying attention to the OSFI changes this week?

    • House HunterNo Gravatar 27. Apr, 2012 at 2:14 pm #

      I think I’m more interested in what the Superintendent office will have to say. Espeically regarding lending rules.

  2. A McNo Gravatar 27. Apr, 2012 at 2:23 pm #

    Im throwing an average price of $450k out there just to see how close I am in the near future here.

  3. birdladyNo Gravatar 27. Apr, 2012 at 3:21 pm #

    The average price for a single family home in Calgary is over 500K. The sales to listing ratio is close to 80% and DOM is just over 30. Edmonton has a long ways to go. Normally I wouldn’t do a comparison city to city but Calgary is so close and in Alberta. So, are all the people moving to Alberta going to Calgary?. Is Calgary 100K + on average better than Edmonton.

    I would have expected our real estate market to be a little stronger this spring – perhaps we are behind our cousins in Calgary and May will prove to be a little stronger. Or maybe we just have a lot more “less than desirable” low priced homes that are selling driving down the overall average.

    • DaBullNo Gravatar 27. Apr, 2012 at 3:29 pm #

      Wait a year or two. Edmonton will start to catch up.

    • Sheldon JohnstonNo Gravatar 27. Apr, 2012 at 5:17 pm #

      Its a fair comparison. I like whats happening here to be honest. More stable and sustainable. Job creation here is stronger and so is net migration so it would be logical our market would be stronger.

      Sent from my ipad

    • SpudNo Gravatar 29. Apr, 2012 at 10:08 pm #

      Calgary is 1 hour away from some of the best skiing and best scenery in the world. Edmonton is a long away from the rockies. Is that worth $100k? Probably. When you speak to people overseas about Canada they know Calgary. They rarely know Edmonton.

      • Sheldon JohnstonNo Gravatar 29. Apr, 2012 at 11:10 pm #

        I dont know how it became a calgary edmonton thing other than they are both great cities in a great province in the greatest country in the world. The only real complaint i have and hear about calgary is just getting around day to day, commuting. Oh yeah and their hockey team sucks. ;)

        • birdladyNo Gravatar 30. Apr, 2012 at 8:00 am #

          As a sales person who had the Edmonton/Calgary territory, I can tell you why there is a Edmonton/Calgary competition. Most Calgarians feel that Edmonton is the ugly step-sister to their city. They consider themselves upper class oil barons where Edmontonians are considered lower class “rig pigs” (their comments, not mine) or brain dead government drones. And don’t even talk to them about Calgary Stampede versus Capital Ex or whatever we are calling it these days. Edmonton really has to start marketing ourselves better with all that goes on here in the summer months.

          The traffic there is horrific, but I will give them points for having more locally owned good restaurants, whereas Edmonton seems to be the capital of chain restaurants.

          • GMNo Gravatar 30. Apr, 2012 at 11:19 am #

            Oh, but Edmonton has the $600,000 pile of steel balls!
            That must bring us into the ranks of a world class city!

          • Sheldon JohnstonNo Gravatar 30. Apr, 2012 at 2:41 pm #

            are we envious of having balls?

          • Sheldon JohnstonNo Gravatar 30. Apr, 2012 at 2:45 pm #

            There a positives to both and negatives to both but together they make up a dynamic duo of Canada’s economic engine. The rivalry between Calgary and Edmonton is a good thing in sports unfortunately it can be detrimental when each city is trying to get major infrastructure projects done.

          • GMNo Gravatar 30. Apr, 2012 at 2:45 pm #

            No, just wondering why I had to pay for them (with my taxes).

          • GMNo Gravatar 30. Apr, 2012 at 2:47 pm #

            Not as bad as Calgary’s $25 million “bridge to nowhere” though.

            But at least the people can walk on the bridge.
            Not sure what we can do with the pile of steel balls, especially when they’re buried under snow for half the year.

          • DaBullNo Gravatar 30. Apr, 2012 at 4:41 pm #

            “GM 30. Apr, 2012 at 2:47 pm #
            Not as bad as Calgary’s $25 million “bridge to nowhere” though.
            But at least the people can walk on the bridge.
            Not sure what we can do with the pile of steel balls, especially when they’re buried under snow for half the year.”

            I heard if you rub them real hard a fountain comes to life.

  4. StephNo Gravatar 27. Apr, 2012 at 7:47 pm #

    Housing in Edmonton is not affordable nor is it affordable in most of Canada. The fact is that median house hold income does not support these prices. And then on top of that, there’s more bills coming in today then 15 years ago. ie, cell phone, Internet, new car, insurance primium etc. if wages are so high then why is personal debt so high? Don’t even try to tell me all the debt is for investment purposes.

    • 17propNo Gravatar 28. Apr, 2012 at 1:14 am #

      Steph, PLEASE do not use statements like:

      “The fact is that median house hold income does not support these prices”

      WITHOUT KNOWING THE FACTS!

      The above statement is just not true.

      Please see:
      link to rbc.com

      Quote “Despite historically elevated home prices in many parts of Canada, exceptionally low interest rates are keeping housing affordability within a tolerable range. We see few reasons for this to change in 2012.”

      And before someone rants about how it was “created by a bank with vested interest blah blah blah”, please understand how the index is created.

      It disgusts me when people make such uneducated statements and calls them “fact”.

    • GMNo Gravatar 28. Apr, 2012 at 1:22 am #

      Well, if it’s not affordable in Edmonton, what can you say about Vancouver or Toronto???

    • EDMONTON EXPATNo Gravatar 29. Apr, 2012 at 9:05 am #

      Based on the average salaries alone, homes are cheaper in Edmonton than in Ottawa. I know that for a fact.

    • MarkNo Gravatar 01. May, 2012 at 10:31 am #

      Budgeting is not a difficult thing if you have discipline and are realistic about what you can afford in life and cannot afford. People overextend themselves. They think they need to have kids, a big house, new cars, etc. and that is where the problem is. As far as cell phones go, I’ve never owned one at any point in my life, all they are is an electronic leash. My monthly expenses include mortgage, condo fee, property tax, food (duh), transit pass, condo insurance, home phone, Internet, HD cable TV, and I give myself $200 to $300 a month in spending money. All of this comes out to no more than $1600 a month. I’m able to put away $800 to $900 a month into savings, investments or lump sum mortgage payments.

  5. GMNo Gravatar 28. Apr, 2012 at 1:24 am #

    Would it be possible to make a chart showing price graphs including the years 2006, 2007 and 2008 along with 2012?

    I’d like to see how much prices have fallen since the peak.

    • EdNo Gravatar 29. Apr, 2012 at 7:23 pm #

      GM,

      You can find the Teranet/NBC house price index at:
      link to housepriceindex.ca

      Data for Edmonton show that prices are flat since early 2009, and showing no sign of moving either way in 2012. Good luck to anybody who wants to get involved in a bidding war on deflating property!

  6. Intotheblue12No Gravatar 28. Apr, 2012 at 10:54 am #

    Real estate prices are high no doubt about it, but as far as affordability goes, real estate is not affordable for first time home buyers who have no equity. Anyone who purchased a property pre 2006 more than likely has significant equity in their property and their debt load is probably comparably not that bad. It is first time home buyers who have the serious issues. Zero equity, minimal down payments, and having to take on excessive debt just to get into the market, and as a result become highly leveraged.

    • GMNo Gravatar 28. Apr, 2012 at 11:08 am #

      I have to agree with you there.
      It’s really not fair for the people who are buying now.
      If they had been born 10 years earlier they’d be way better off in terms of housing.
      The only hope they have is to inherit the housing from their parents. That’s the only way to keep up.

  7. Inspector GadgetNo Gravatar 28. Apr, 2012 at 5:56 pm #

    So if the average person cannot buy the average house…..

    Tick tick……

  8. Intotheblue12No Gravatar 28. Apr, 2012 at 8:37 pm #

    The average person CAN buy the average house if they were a home owner pre 2006. It is the new home buyers and people who did not buy pre 2006 that cannot afford the average home and these people represent a small fraction of the total market. Being a first time home buyer is a challenge because the debt to income levels are generally significantly higher for that demographic, and they are generally not as far along or established in their careers.

    High debt to income, less certainty in income, and generally higher unemployment rates for the younger first time home buyer demographic are what make up the high risk borrowers of today.

    • columboNo Gravatar 29. Apr, 2012 at 8:56 am #

      Which areas are receiving multiple offers?

      Thanks.

  9. TCNo Gravatar 29. Apr, 2012 at 2:47 am #

    Terwillegar areas are HOT as well, VERY HOT! My house was sold 4 days after listing. The first two days had no calls at all due to the weekend, but then BOOM – 9 showings on Monday & Tuesday! We were quite exhausted in/out of our house, but very surprised to see a very firm offer right on Tuesday evening!

    Other houses around us have listed over 60 days (and are still listing) with no offers but then they are on Comfree and I don’t know they are considered “listed”.

  10. Inspector GadgetNo Gravatar 29. Apr, 2012 at 11:09 am #

    I finally took an hour and had a look at the MLS for something other than my own area. I can certainly now see why people are jumping at nice properties that are priced at market….because there are so very few of them!

    Most of the red dots I scrolled over were either pieces of $%^&, or WAY over priced, or both! More than a few I remember from last spring, so they have been sitting for a year, or more likely have been brought back to market.

    As Sheldon has pointed out there are sellers out there that are not in enough of a hurry to sell that they are willing to take market for their properties. That will eventually change of course. No wonder new builds are so popular with the prices people are asking for the crap that is on MLS. Especially one down my street….been on an off MLS for over 1.5 years, with no price moves. Such a hunk of junk too!

    • birdladyNo Gravatar 29. Apr, 2012 at 5:58 pm #

      So would you like to share with us the price range you were looking at. I have seen some questionable homes in the price range of 475-550K range but then maybe the area they are in dictates that price, ie Ada Blvd.

  11. wsnNo Gravatar 29. Apr, 2012 at 10:37 pm #

    Sheldon, is the high $500k Riverbend property you mentioned 2057 Haddow Drive?

    • Sheldon JohnstonNo Gravatar 29. Apr, 2012 at 11:02 pm #

      No.

  12. wsnNo Gravatar 29. Apr, 2012 at 10:57 pm #

    In my own observation, real estate is truly red hot as of now. But it is just not reflected in MLS statistics. Around my area (Windermere), lots are essentially flying off the shelf. Go ask Beaverbrook how many lots still left and how soon new stages can be released. Houses around 1~1.5M are very very common.

    • Sheldon JohnstonNo Gravatar 29. Apr, 2012 at 11:06 pm #

      Drive down windermere drive in north windermere. There are quite a few shacks sitting and not moving. That area was really hot in february but all it takes is alarge number of completions at the same time and you get a bit of a log jam. In that area i have seen some of the highest quality builds i’ve seen in years and some of the worst crap (top ten worst) as well.

      • wsnNo Gravatar 02. May, 2012 at 10:59 am #

        Sheldon, do you mean “Windermere Road”, instead of “Windermere Drive”?

        Windermere Road is packed with $500k ~ish 2000sf Landmark vinyl siding houses and $800k ~ish (not sold) 2800sf small builder houses (because those lots are sold to public).

        Windermere Drive is a totally different story. The south section of Windermere Drive is called Winderemere Ridge, which is THE richest new home community. No dispute. The north section has the old 1-arce river lots on one side and undeveloped land on the other side. The north part of the undeveloped land will be developed soon as WIndermere Grande. Those 18,000sf lots ask for $580k each and over half of those were sold already.

        • Sheldon JohnstonNo Gravatar 02. May, 2012 at 2:20 pm #

          You are correct. Windermere Rd. Thanks for the excellent intel on the area btw.

  13. A commong guyNo Gravatar 30. Apr, 2012 at 9:02 am #

    Sheldon, I think what wsn is talking about is Upperwindermere (developer is Beaverbrook). Those are all $1M+ houses. North windermere is a totally different class with crap houses as you say and some better ones mixed in.

    • wsnNo Gravatar 02. May, 2012 at 11:10 am #

      1) You have a good point. Nonetheless, the confidence of the builders are not seen in years.

      2) Upper Windermere has 4 sections. “Urban” (hardi board required) only costs about $470k~550k. “Premier” costs about $550k~$900k (stucco required). So yeah, big difference from the vinyl siding shacks of WIndermere North.

      “Estate” from $1M (cedar shake roof or better required). “Ridge”, currently has two pre-owned listings at $3.9M and $6.5M.

  14. A commong guyNo Gravatar 30. Apr, 2012 at 9:03 am #

    I have to add that, many of the lots bought there are by builders not those who want to build for themselves. So you’ll see many “for sale” signs in a year or two overt here.

  15. jasonNo Gravatar 30. Apr, 2012 at 2:36 pm #

    So we built new in spruce grove in June 2010, took ownership on Feb 2011.

    We paid 480,000. Do new homes hold thier value pretty good, my area is pretty much completely sold now.

    • Sheldon JohnstonNo Gravatar 30. Apr, 2012 at 2:40 pm #

      depends on the area and the demographics (demand), the builders that were building in there (Quality), the architecural controls and of course the location not to mention prevailing market conditions.

      • jasonNo Gravatar 30. Apr, 2012 at 3:06 pm #

        I think its a pretty desirable area, spruce village, theres a huge 60 acre park nearby.

        I guess my question was more general, if a new home is usually worth the price you paid for it. Our appraisal came in at 490 before we moved in, but our tax assement says 435,000.

        • Sheldon JohnstonNo Gravatar 30. Apr, 2012 at 4:16 pm #

          my experience in the Edmonton area is that appraisals are more accurate than assessments and appraisals are worthless to me for a variety of reasons.