Weekly Update, Jan. 10/14

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

New Listings: 321 (103, 83, 171)
# Sales: 116 (96, 84, 146)
Ratio: 36% (93%, 101%, 85%)
# Price Changes: 84 (35, 30, 51)
# Expired/Off Market Listings: 91 (414, 114, 168)
Net loss/gain in listings this week: 114 (-407, -115, -143)
Active single family home listings: 1614 (1513, 1712, 1767)
Active condo listings: 990 (967, 1121, 1154)
Homes 4-week running average: $426k ($418k, $409k, $417k)
Condos 4-week running average: $232k ($233k, $242k, $244k)

Ok.... sorry about the late update, having major technical issues today. This is all I can manage, I'll have an annual report early next week. Have a great weekend!

AverageJan1014
Average Price

About 

Sara MacLennan is the Director of Marketing at Liv Real Estate and a licensed Real Estate Associate. The bulk of Sara’s experience and wealth of expertise lies in on-line technology and marketing both for agents and consumers. Sara is the former National Director for Interactive Marketing for Coldwell Banker Canada where she was responsible for an extensive training program traveling to offices across the country training agents and brokers on marketing and technology. Find Sara on Twitter @edmontonblogger.

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43 Responses to “Weekly Update, Jan. 10/14”

  1. CastledownsNo Gravatar 10. Jan, 2014 at 3:50 pm #

    Looks like it’s a breakout from the chart. We should see another rush to buy when the rate starts to go UP.

  2. Karl HungusNo Gravatar 10. Jan, 2014 at 4:43 pm #

    There were a few folks predicting some doom and gloom for 2013, (Inspector), but it looks like prices were up about 3% for the year. Hope the crow tastes good.

    Should be up another 3-5% next year.

  3. MattNo Gravatar 10. Jan, 2014 at 7:01 pm #

    The market’s looking like it’s heating up, average house sale price is up over 9% from this time last year, which was $388k. link to edmontonrealestateblog.com

  4. theexpertNo Gravatar 10. Jan, 2014 at 8:02 pm #

    The real estate market will be just fine as long as the job losses of December don’t continue. 12000 jobs lost in Alberta – as long as they weren’t potential home buyers jobs.

  5. GMNo Gravatar 10. Jan, 2014 at 8:49 pm #

    When potential buyers see that prices are rising, along with the possibility of interest rates also rising in the near future, they’ll start to panic. A springtime buying frenzy will ensue with buyers once again wrestling each other on the front lawns for the privilege of buying the property.

    It’s gonna be fun!

  6. JohnNo Gravatar 10. Jan, 2014 at 10:48 pm #

    The problem right now is there is not much inventory to buy in the mature neighbourhoods. I’m looking to buy in mature neighbourhoods, like Inglewood, Bonnie Doon, Forest Heights for around $325,000, 1,200 sqft in decent shape. So hard to find anything quality with only a handful of listings. 2 years ago, I could pick and choose, but not now.
    If people were smart, just hang onto to your houses, should only go up from here because of the jobs. We are also $100,000 cheaper than Calgary and rental rates are pretty close.

  7. TomCNo Gravatar 11. Jan, 2014 at 9:48 am #

    $325,000 is a tough price point these days. The average selling price in 2011 was $375,000 in Forest Heights, and now it’s $438,000 (link to edmontonrealestatemarket.ca),

    I bought a bungalow in Forest Heights last summer which was around 1,100 square feet, and it was $410,000. I think you could still get that price in Terrace Heights though, but Terrace Heights isn’t as close to the River Valley, and doesn’t seem to have as many infills being put in as Forest Heights. Here’s the cheapest detached home currently for sale in Forest Heights. It’s withing your price range at $348,000, but it’s only 700 square feet. link to realtor.ca

  8. CMDNo Gravatar 11. Jan, 2014 at 3:58 pm #

    @John, good luck finding a decent single detached for under $350k in mature neighbourhoods except for ones that aren’t that desirable.

    • tchoNo Gravatar 11. Jan, 2014 at 7:32 pm #

      The power of perception really is something. I’ve lived in the AB Ave area for the last 6 years now. Before that I lived in the Old Strathcona area for around the same length of time. Long story short – I enjoy the AB Ave area much more, and plan on sticking around. No incidents here of any note in 6 years. My wife loves it as well.

      John – if you’re not also victim to the perception problem, I’d recommend taking a look.

  9. JohnNo Gravatar 12. Jan, 2014 at 2:37 am #

    Tcho,

    I have a couple of houses in Westmount and Inglewood, looking to buy more. I like to stay in really good neighbourhoods because easier to find better tenants. I use to have houses in the North East (Montrose), just had lots of troubles in renting.
    Since the prices have gone up a lot, looking at Maculay, even decent houses are $250,000+. Have to agree with you the inner city there is a lot of new construction going on, so Alberta Avenue isn’t too bad. Just a really tough market to make money.

  10. MattNo Gravatar 12. Jan, 2014 at 9:14 am #

    I’d agree with CMD that you can’t really get a detached house in a good mature neighbourhood for $350k. I would even go so far as to say below $375k is difficult unless you want something requiring substantial work.

  11. MattNo Gravatar 12. Jan, 2014 at 9:19 am #

    It does make sense that mature neighbourhoods are becoming more popular/more expensive, with downtown set to revitalize, mature neighbourhoods are where people will prefer to be, rather than suburbs. IMO the gains will be quite large in any mature neighbourhood, while the prices in the suburbs will stagnate. The desirability of mature neighbourhoods will be facilitated by our current mayor, who wants to revitalize them, while conversely making it less attractive to buy in the suburbs.

  12. RippedNo Gravatar 12. Jan, 2014 at 8:42 pm #

    Isn’t anybody the least bit concerned the top may be very near if not already here? I mean it’s been an unbelievable run and now the numbers coming in are looking like this rocket may be running out of fuel. Job losses mounting, dollar diving, trade deficit 9 times worse then expected Does this not raise a flag? Buy low and sell high?

  13. JohnNo Gravatar 12. Jan, 2014 at 9:27 pm #

    Ripped,

    The average single family house in Vancouver is close to1 million dollars. Average salaries are higher here and rental rates are similar. Yes, Vancouver is a lot more desirable place to live (lived there for 30 yrs), but in the end you go where the money is.
    Property can come down, but historically always way higher after 15 years, impossible to time the market. Any one that is wealthy is always in the game, wheather your in real estate, stock market or collectibles. The biggest thing with real estate is leverage and it forces people to save money instead of going on vacation.

    I read something so true, that if you start early like 20 and save, invest up to 35, that 15 years is more important accumulate wealth than what you do when you start at 35 and do that until your 70. Secret in life is start as soon as you can. Before 2007, you can buy property without qualifying, with a $100,000 you could bought so many places. Good luck buying more than one, since you have to qualify for every house.

  14. Karl hungusNo Gravatar 12. Jan, 2014 at 10:06 pm #

    Ripped,

    When prices are going up, every year is a new peak. Most years, prices increase.

  15. RippedNo Gravatar 12. Jan, 2014 at 10:27 pm #

    Karl,

    Real estate doesn’t go straight up forever, it has it’s cycles just like the economy and financial markets, etc.

    Yes real estate is more expensive now then in 1980 as is everything but real estate was cheaper in 1990 then it was in 1980. I may be out a year or two on that example but you catch my drift. A more recent example was in 2008.

    Another example look south, the U.S. and there real estate market. And no Canada is not special or anything absurd like that.

  16. a common guyNo Gravatar 12. Jan, 2014 at 11:24 pm #

    You can’t look at Canadian real estate as a whole. If there is a bubble it would be Toronto/Vancouver. Even Calgary has passed its peak and Edmonton is typically 0.5-1 year behind Calgary. I suspect we’ll see steady but small gains (just like last year).

  17. RippedNo Gravatar 13. Jan, 2014 at 8:45 am #

    Canada bears smell blood over US ‘frackovery’

    “All of the stars have aligned quite nicely,” he said. “We’ve had evidence of a lot more slack in the domestic economy than we previously expected, that’s feeding through into low inflation.”

    link to cnbc.com

  18. MattNo Gravatar 13. Jan, 2014 at 9:29 am #

    The fact that the economy appears weaker is good for the housing market, as it means that interest rates should remain low for years, and low rates are what’s been furling the market the last five years or so.

  19. MattNo Gravatar 13. Jan, 2014 at 9:30 am #

    That should say fueling.

  20. Karl HungusNo Gravatar 13. Jan, 2014 at 11:21 am #

    Ripped,

    Since 1962 there have only been 10 years with negative growth in house prices in edmonton. Average growth over that time is 7%. Like I said, most years are up. Does the past guarentee future? No, but it is the best predictor.

  21. Karl HungusNo Gravatar 13. Jan, 2014 at 11:49 am #

    And yes there are economic cycles, we just hit the bottom and are now in an expansion stage.

  22. wsnNo Gravatar 13. Jan, 2014 at 12:58 pm #

    LOL, GIC must be the most dangerous thing, because it’s been going up year after year.

  23. 123kidNo Gravatar 13. Jan, 2014 at 3:01 pm #

    The only bubble that is being produced is the money bubble.

    The amount of money that is being printed, no surprise prices are rising.
    I credit wsn for this key insight that was made on truman’s blog.

    • wsnNo Gravatar 14. Jan, 2014 at 8:57 am #

      Thanks. Not a novel finding though :)

      When I was younger, I thought the paper money printing was the source of all evil. Now that I changed my mind a little bit. Sure it’s a form of tax and still evil in many situations. But it does have some positive intention and results, most notably in terms of loans for start up business.

  24. Jonathan PeddleNo Gravatar 14. Jan, 2014 at 9:46 am #

    There was a very high number of multi family starts in December. I know we should continue to see strong activity on the multi family side but December was very high. Was there any one condo building, etc that may have skewed this number or should we expect to see that extreme for the coming months.

    Im hoping the weather this December is the reason for slightly lower single family starts than December 2012… Any thoughts?

    Know of a good place to view a breakdown of the numbers for starts?

    Thanks in advance

  25. HarboursnugNo Gravatar 14. Jan, 2014 at 8:23 pm #

    Keep living in dreamland

    link to blogs.wsj.com

    • GMNo Gravatar 14. Jan, 2014 at 10:35 pm #

      Hey! That’s fantastic news, Harboursnug!
      This means the gov’t of Canada will not be raising interest rates for quite some time! Yippee! This means the house-buying frenzy will continue for the foreseeable future.

  26. Karl HungusNo Gravatar 14. Jan, 2014 at 8:31 pm #

    Yup, keep comparing Canada to edmonton like it means something.

    • HarboursnugNo Gravatar 14. Jan, 2014 at 11:37 pm #

      Oh ya… Edmonton is special. lmao

      • CastledownsNo Gravatar 15. Jan, 2014 at 1:15 am #

        Alen Mattich did not predict 2008 US financial crisis, nor will he be able to predict the next possible one 6800KM away from his home base in London, UK.

        Same question was asked back in 2008: “Oh ya… Canada was special. lmao”. That person is now proven to be a fool.

        • HarboursnugNo Gravatar 15. Jan, 2014 at 5:41 am #

          Yup just keep buying, it’s all rosy…. house prices just keep going up and up. Hec… buy another one, buy two. Gorge yourself at the buffet of debt, interest rates are low so what’s the problem. lol

          • GMNo Gravatar 15. Jan, 2014 at 6:07 am #

            I know it must be very frustrating for your Harboursnug, being a renter and seeing the housing prices continue to rise year after year, defying your predictions of a housing crash again and again…

            Too bad you didn’t buy a house back in 2009 when you could afford it.

          • CastledownsNo Gravatar 15. Jan, 2014 at 10:52 am #

            The problem is that he failed to see our housing market trend is in line with our population growth.

            Simply look at our record school enrollment rate, especially our post-secondary student numbers. I don’t see how all of these smart kids will go back to their mom’s breakfast after getting a high-paying job.

            Out of province migration is also at record high. Take a look at our rental vacancy rate at around 1% level. Yes, LMAO!

            That of course, it’s a bubble. Student enrollment rate will crash one day, all these stupid demand for new schools are all speculation because Alen Mattich from London, UK says so. LOL

      • Karl HungusNo Gravatar 15. Jan, 2014 at 1:43 pm #

        Its got nothing to do with Edmonton being “special”. If you would see whats happening in the different markets in Canada, you would see they all act independently. Since 2008, some markets have risen substantially (Vancouver, Toronto), while others have been mostly stagnant (Edmonton). If you look at economic fundamentals, (jobs, population growth etc.), coupled with the fact that other markets are much more unaffordable then Edmontons, its not ridiculous to think that there will be steady growth in Edmontons housing market.

        But of course its just easier to regurgitate Turners tired old “you think your special” routine.

        • GMNo Gravatar 15. Jan, 2014 at 2:03 pm #

          As for Garth Turner…

          Eventually he’ll be right. But we may all be dead and gone by then.

  27. RippedNo Gravatar 15. Jan, 2014 at 12:56 pm #

    “Too bad you didn’t buy a house back in 2009 when you could afford it.”

    Bingo!

    • HarboursnugNo Gravatar 15. Jan, 2014 at 2:42 pm #

      Shhhh… Let them keep buying those half million cornflake boxes out in the burbs. They’ll find out no one else can afford to buy them or wants to for that matter.

      • wsnNo Gravatar 20. Jan, 2014 at 4:57 pm #

        Shhhh… Let them keep renting those half century old cornflake boxes out on Alberta Ave. They’ll keep renting it year after year after year.

  28. EdNo Gravatar 16. Jan, 2014 at 7:15 am #

    The party is over.

  29. RippedNo Gravatar 16. Jan, 2014 at 8:47 am #

    Oilers get Ben Scrivens from L.A.

    Ben: Honey were going to Edmonton
    Wife: What do you mean “we”

    • GMNo Gravatar 16. Jan, 2014 at 9:07 am #

      we are = we’re

    • HarboursnugNo Gravatar 16. Jan, 2014 at 11:23 am #

      LOL… Good one!