Weekly Update, Jan. 24/14

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

New Listings: 333 (307, 321, 103)
# Sales: 168 (129, 116, 96)
Ratio: 50% (42%, 36%, 93%)
# Price Changes: 110 (88, 84, 35)
# Expired/Off Market Listings: 85 (125, 91, 414)
Net loss/gain in listings this week: 80 (53, 114, -407)
Active single family home listings: 1731 (1658, 1614, 1513)
Active condo listings: 1064 (1030, 990, 967)
Homes 4-week running average: $420k ($424k, $426k, $418k)
Condos 4-week running average: $230k ($234k, $232k, $233k)

We sure could use more listings in Edmonton! If there was more to choose from, there would be more sales, I'm certain of it. Traffic to our sites is way up, and we have lots of active clients looking, they're just not finding what they want. Hopefully we get more inventory soon because the demand is there. Also of note this week, banks dropped fixed mortgage rates and the BoC kept their key interest rate at 1%.

AveragePrice
Average Price
ListingsAndSales
Listings And Sales

Have a great weekend!

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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18 Responses to “Weekly Update, Jan. 24/14”

  1. wsnNo Gravatar 24. Jan, 2014 at 11:34 am #

    “we have lots of active clients looking, they’re just not finding what they want.”

    They probably won’t, if their mindset is fixed on 2004 price levels.

    The inventory of MLS is not high, but not terribly low either. The selection of new communities and new lots is the best in recent years. All one needs to do is to pay a fair market price for it.

    • wsnNo Gravatar 24. Jan, 2014 at 11:41 am #

      Sara just posted “Top 5 things you’ll never hear a listing agent say to a buyer” where the top reason is that “it’s over priced”.

      Same goes with buyer’s agent. This is a two way street. For every seller who prices too high and couldn’t sell, there is a buyer who offers too low. Chances are that they are the same type of people.

    • AnonNo Gravatar 24. Jan, 2014 at 1:02 pm #

      Maybe these buyers don’t want to live in the new communities and want ready to move in properties in mature/convenient areas. A nicely renovated 1278 square foot bungalow in my neighbourhood had a sold sign on it less than a week after listing. The list price was $449,000.
      Obviously there are people out there who are willing to pay 2014 prices but as Sara has mentioned, these properties are hard to find
      (especially if you’re an average Edmontonian looking for a house between $400,000-$500,000).

      Similarly, there are two other bungalows not far from the sold one that have been sitting on the market for awhile. Their prices are lower but the amount of work required to make it nice is probably turning off buyers who don’t want to bother with the work (I know I wouldn’t). One of them is listed at $399,000 and with about $50,000-$60,000 put in would be nicer than the one that sold. The availability of move in ready, fair priced, and well located homes are low right now. New homes in new areas will always be in demand by a segment of the population and developers will always be ready to meet those needs (you can get a nice 1600-1800 square foot home in many new communities for $450,000ish…Langdale has a 2014 built 1815 sq. ft. home for $464,900). It’s the rest of the population that want a different product that will find difficulties in Edmonton.

      • wsnNo Gravatar 24. Jan, 2014 at 1:24 pm #

        You got a demand, you gotta pay for it.

        Like mature neighborhood, and don’t like renovate yourself? You know what to do. A solid $1M will solve the problem. That’s the fair market price.

        If you can’t afford that, you gotta adjust your expectation. It goes the same for job, marriage, etc.

    • NathanNo Gravatar 24. Jan, 2014 at 3:47 pm #

      wsn, I think what she means is that demand seems to be relatively high, while supply is relatively low. Houses are not interchangeable goods, so there is a greater variety of homebuyers than there is available homes.

      The value of a house has an upper bound of what a buyer is willing to pay for it and a lower bound of what a seller is willing to part with it for. When there is a disconnect it isn’t that buyers are undervaluing, or even that sellers are overvaluing. It is that what the sellers are selling is not the same as what the buyers are buying.

      • wsnNo Gravatar 26. Jan, 2014 at 8:43 am #

        Houses, especially ones under $1.5M in Edmonton, are very much interchangeable. From older neighbourhoods such as Glenora, to newer ones such as Keswick, there is only about 3~4 major floor plans (and sizes) in one area. Most of the houses are variation of the 3~4. Truly unique plans are a minority now, and back then. It takes about $160~$200/sf to rebuild, or $50/sf to do an OK renovation. It’s as commodity as it can get.

        If you want something more unique than that, such as must be cul-de-sac, backing to the river with river valley view, SW back yard, walkout, all at the same time, then the inventory is really low. FYI, such properties do exist. A handful magnificent truly houses.

        • NathanNo Gravatar 27. Jan, 2014 at 4:05 pm #

          If houses were interchangeable, real estate would be a very different business than what it is.

          There are probably some home buyers that are just shopping for the lowest price for an adequate house, but I bet most are more picky than that.

          Lets say a buyer is limiting his search to one area of the City (probably the first consideration for most home-buyers), and lets say that narrows things down to a fraction of the City. Then you say there are only 4 different layouts, only one of which appeals to the buyer. Eliminate some major disqualifiers like structural damage, smoking residue, pets, mildew, etc.

          Then say the buyer has some common musts like finished basements, newer furnaces, and high walkability, and you might be left with only a handful of options.

          Notice that price hasn’t even come into this yet, but all this really does is exclude some neighborhoods. (You may have to live in Lymburn instead of Westridge).

          Put all of this together and a buyer may only have a couple of options at any given time when supply is high. Cool supply a bit and the options may dwindle to 0 for a good many buyers.

          If houses were available but buyers thought they were overpriced, I think what you’d see is a lot of rejected low-ball offers. I think Sara would have mentioned that if that was happening.

          • wsnNo Gravatar 27. Jan, 2014 at 4:13 pm #

            Please stop at the stage of selecting a layout.

            Things like “finished basements, newer furnaces, and smoking residue, pets” can be fixed by a renovation, which is a commodity service and not unique.

          • RippedNo Gravatar 27. Jan, 2014 at 6:56 pm #

            Not everyone is interested in Home Reno / Love it or List it / Property Brothers, etc. etc.

            Those reno tv shows bore the absolute F out of me!

          • NathanNo Gravatar 28. Jan, 2014 at 9:24 am #

            wsn, renovating to suit tastes is not something everyone wants to do, and is not always a rational way to go about things, especially when those renovations are a matter of taste.

            Many houses on the market include recent expensive renovations factored into the asking price. If I want hardwood floors, why would I pay someone for a brand new carpet?

            The same thing goes for rebuilds. If all I want is the land, why would I want to pay anything at all for the existing structure? The only reason rebuilds happen is because the buyer values the land for more than the seller values the entire property.

          • wsnNo Gravatar 28. Jan, 2014 at 11:27 am #

            Nathan, I am not suggesting you to do a renovation. My point was that renovation is a commodity service, in-fill rebuild is a commodity service, and money is a commodity too (if you want to buy the existing property). There is nothing unique about a house under $1.5M in Edmonton.

          • NathanNo Gravatar 28. Jan, 2014 at 4:38 pm #

            But that’s not how people shop for houses. A ‘house as commodity’ market would look like this; a buyer would look at all the properties available in the desired area, then add on the reno/rebuild cost to make the house he wants, which would vary depending on how much alteration needed to be done. Then he would simply take the one with the cheapest overall cost, do the work, and he’s got his dream home.

            How it really works is the buyer decides how much work he is willing to stomach, and then buys the first property that he finds that meets that threshold that he can afford. If none are available, he waits.

            If he consistently sees properties that meet the threshold, but he cannot afford them, he typically either looks to a cheaper area, makes low-ball offers, or waits until he can afford it. People hardly ever lower their expectations.

  2. JohnNo Gravatar 24. Jan, 2014 at 2:50 pm #

    Anon,

    Where is the neighbourhood you live in?

  3. theexpertNo Gravatar 24. Jan, 2014 at 3:48 pm #

    Sara, might want to change the dates on your posts as it is now 2014. :)

    Total inventory doesn’t seem much different than it was last year at this time of month however depending on the price range there is definitely less to choose from – mostly in the under 325K range.

    I would suspect a number of lower priced apartments/condos have sold to investors who are looking to rent them out considering the shortage in rental properties.

  4. AnonNo Gravatar 24. Jan, 2014 at 10:07 pm #

    John, this is it. House that sold was very, very close. link to beta.realtor.ca

  5. JohnNo Gravatar 25. Jan, 2014 at 7:36 pm #

    Thanks Anon.

  6. CastledownsNo Gravatar 26. Jan, 2014 at 3:13 am #

    Natural gas spot price passed the $5 mark, this spring is gonna be VERY interesting for our housing market.

  7. RippedNo Gravatar 26. Jan, 2014 at 11:00 am #

    Short Natural Gas

    link to seekingalpha.com