Weekly Real Estate Market Update, March 7/14

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: 479 (389, 370, 365)
# Sales: 225 (253,217, 217)
Ratio: 47% (65%, 59%, 59%)
# Price Changes: 140 (126, 98, 94)
# Expired/Off Market Listings: 150 (73, 96, 85)
Net loss/gain in listings this week: 104 (63, 57, 63)
Active single family home listings: 1907 (1838, 1786, 1781)
Active condo listings: 1275 (1231, 1196, 1131)
Homes 4-week running average: $422k ($414k, $409k, $408k)
Condos 4-week running average: $240k ($245k, $245k, $246k)

Finally a week with lots of new listings! Unfortunately the net increase isn't much higher than recent weeks because a large number of listings came off the market as well - those listings probably make up a good portion of the "new" listings this week. 

ListingsandSales
Listings and Sales
EdmontonHomePrices
Edmonton Home Prices

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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26 Responses to “Weekly Real Estate Market Update, March 7/14”

  1. 123kidNo Gravatar 07. Mar, 2014 at 4:10 pm #

    link to bobtruman.com

    Based on Truman statistics, still a little ways to go to reach the approx. average price of 460k (May 2007).

  2. Inspector GadgetNo Gravatar 07. Mar, 2014 at 4:36 pm #

    123,

    It is only 7 years later!

    • GMNo Gravatar 07. Mar, 2014 at 5:32 pm #

      Check the price of Lehman Bros stock seven years later…

      I’d say the price of Edmonton real estate hasn’t done too bad in comparison.

  3. Inspector GadgetNo Gravatar 07. Mar, 2014 at 5:36 pm #

    Cherry Pick GM. Money in markets is generally worth much more than it was then.
    I remember the crys of ‘buy now or be priced out forever’ that spring!

    • ItchyNo Gravatar 08. Mar, 2014 at 7:56 am #

      Speaking of cherry picking. Comparing a February average to a May average is silly since, in the same year, February’s averages are lower than May’s time after time. Secondly, the average I see for May 2007 is 451,000, not 460,000. Thirdly, if anyone believes anything only goes up in price, they’re dillusional. Even taxes get cut sometimes. If they said, buy now, your house will be worth more in 10 years, they would be correct. Finally, those who bought at the peak are a very small number in the overall housing market and unless they have to sell, they have had the soothing ointment of their payments being cut by hundreds a month because of lower mortgage rates.

  4. Inspector GadgetNo Gravatar 08. Mar, 2014 at 5:35 pm #

    Only problem is the posted rate in the first half of the 2007 was 7%. Many first time buyers drank the coolade and many also took a five year. Five years of negative equity many paying 5% or more fixed.
    Yes a small number overall, but still a notable number who are just approaching a break even point. At least most have signed a new lower mortgage.

    • wsnNo Gravatar 08. Mar, 2014 at 7:22 pm #

      Are you saying that just because stupid home buyers exist, investment in real estate is not good?

      By the same logic, some stock investors bought in the peak of 2007 and sold all of their stake at a loss after the market crash in 2008. That must have made stock investment a poor choice in general, right?

  5. a common guyNo Gravatar 08. Mar, 2014 at 6:46 pm #

    I.G.
    Do you really believe that stocks don’t ever come down? Do you really think all those companies that have had big gains have never had big losses?if so, do a little bit research to find out that both housing and markets have their ups and downs and comparing picks/lows to the rest doesn’t mean much. There is a reason most of those who manage big funds (pensions for e.g.) have their assets spread in both (stock and real estate). You should know what you are doing. I would buy in current Edmonton market but not in Vancouver or Toronto.

  6. Inspector GadgetNo Gravatar 09. Mar, 2014 at 12:03 pm #

    I only brought up the conversation because the topic of Edmonton is getting close to it’s highest ever median and average price (unadjusted for inflation of course). It is likely to happen this spring. It should be of interest to anyone who invests in real estate in one way or another. I assume most of the people that read this blog are interested in such things, no?

    I have always been a huge fan of diversification and as I have stated before I own two properties in Edmonton, though I have the bulk of my net worth in other assets. I have seen friends and family loose tremendous amounts of money in real estate by not being prudent, careful and realistic. I have also seen people lose big money on high risk bad idea stocks. I do not preach buying and selling individual stocks.

    If I can share some experiences and help prevent some young or inexperienced people from making mistakes I will. I have both made and lost money in real estate over the years in other cities and Provinces. To answer the question from the common guy, of course stocks go up and down but money intelligently invested has spanked Edmonton real estate as an investment for all but a few years around 2001-2006. How do I know? I have owned both for much longer than that and actually do the math.

    • Karl HungusNo Gravatar 09. Mar, 2014 at 8:40 pm #

      You always say this but there is just no way that it is true unless you bought property with cash. The leveraging factor with rental property increases your ROI far past any returns you will get from stocks.

      Show me your math to prove your point.

      • RippedNo Gravatar 09. Mar, 2014 at 10:41 pm #

        A $3 stock is marginable at 50%

        A $500K house is marginable at 95%

        Pretty hard to compete with real estate when talking margin

        Margin is a great tool when going in the right direction but….

  7. Inspector GadgetNo Gravatar 10. Mar, 2014 at 6:59 am #

    I have two very small mortgages on the primary and rental. Leverage was used up long ago. Such is the penalty for paying the mortgage I guess. Wish I had borrowed off the properties to invest the last five years but sometimes enough money is enough and a great night sleep is more important.
    Sure am glad I was not leveraged after buying in 06-07 like many of my young coworkers. Ask them how leverage worked out so far!

  8. EdmontonInvestorNo Gravatar 10. Mar, 2014 at 9:39 am #

    Inspector Gadget, I love reading your posts, you are hilarious

  9. JohnNo Gravatar 10. Mar, 2014 at 4:12 pm #

    Not sure why people are dissing Inspector, I have probably made $150,000+ in 2.5 years buying 2 houses, both on RF3 zoning lots and when I build, even make more money. If I dumped that money in stocks especially you can margin up to 3 times, I would have made more.
    The biggest issue is in stock, can you deal with the ups and downs especailly when you keep pushing your margin limit. There is also a greater margin of error when you play stocks, it all depends how good your are and if you can stomach the swings, stocks is not for everyone.

  10. karlhungusNo Gravatar 10. Mar, 2014 at 6:50 pm #

    John, you made $150,000 on how much? How much did you invest? 150k on 100k?

  11. JohnNo Gravatar 10. Mar, 2014 at 8:03 pm #

    I bought a fully renovated house on Westmount 48′ X 148′ lot RF3, possible 2 lots, fully renovated house for around $300,000, that cash flows $300 a month, rented $1900, Lots that big are going for $350,000, no house.
    Easy money was made 2.5 years ago, saw a house in Delton 1,200 sqft for a little over $200,000, not $270,000. The reason, I can do this is possibly came from Vancouver and realized that you always buy the best areas within reason, large lots, character homes. I was here 12 years ago and was buying South Glenora for a little over $200,000.

    The mistake people make is that they buy new houses.

  12. JohnNo Gravatar 10. Mar, 2014 at 8:07 pm #

    My second house in Inglewood, around $270,000, 46′ X 140′ 1,200 sqft house rented for $1725, a lot will go for around $295,000+My strategy cash flow at 5 percent, probably can’t do that now.

  13. karlhungusNo Gravatar 10. Mar, 2014 at 11:29 pm #

    Okay but you didnt answer my question, how much of your own money did you invest.

  14. JohnNo Gravatar 11. Mar, 2014 at 1:01 am #

    $34,000, to buy 2 properties, one striaght bank financing and the other one agreement for sale

  15. JohnNo Gravatar 11. Mar, 2014 at 1:01 am #

    $35,000, to buy 2 properties, one striaght bank financing and the other one agreement for sale

  16. JohnNo Gravatar 11. Mar, 2014 at 1:11 am #

    The problem when people buy real estate they always worry too much on price. I think most important thing is terms, will vendor carry fiancing, how long? I will pay $5,000-$10,000 above market if the property will cash flow at 10 percent down if seller will carry. After 2006 you have to qualify all the properties, but honestly how many can you buy now.

    A guy in Calgary was so smart, he tied down the seller on a 20 unit apartment building for 6 months with a 10,000 refundable deposit in 2005. In the end, need to be in the game to make money.

    Someone always told me just follow what the rich do, especially in real estate investing in higher end properties will always appreciate in value higher than the lower end property.

    • karlhungusNo Gravatar 11. Mar, 2014 at 9:29 am #

      Okay so you made 150k on 35k = 428 % in 2.5 years. Sorry but theres no way your making that in the stock market.

  17. Inspector GadgetNo Gravatar 11. Mar, 2014 at 6:39 am #

    When one had nothing intelligent to say I guess personal attacks are all that is left.
    John makes a great deal of sense and actually sounds like he knows a thing or two. His timing is likely planned as well. I fully understand leverage and have used it well, but for a person without cash it offers a great deal of risk as well as possible reward. That is my only point. When the frenzy is on, Like the last buy now or never cycle it is mostly the young and inexperienced that jump in at the last minute… Egged on by brokers, Middle class unsuccessful parents and some not so honorable realtors. Leverage can ruin and reward.

  18. JohnNo Gravatar 11. Mar, 2014 at 10:00 am #

    In stocks I would have made way more because with $35,000 you can buy $105,000 worth of stock, one stock is Las Vegas Sands, almost all big cap US stocks have gone through roof. At $35 in 2011, it’s now past $80, every few dollars keep pushing the limit, that’s why margin is such a crazy tool. If invested in US stocks, that $35,000 would have gone to $300,000+.
    In the end, if had to do it over again, would have just buy one property and leveraged out US stocks. When I look at stocks kinda of depressed.

  19. a common guyNo Gravatar 11. Mar, 2014 at 3:55 pm #

    A $1100 stock can vanish into zero literally (we have seen examples of it), a piece of land or a house in a big city here is unlikely to be worth zero.
    Stock market IMO is having a bit of over inflation in some parts of it (way beyond what the economy is showing) and they are due (sooner or later) for big corrections. Even super hot big companies have this after a while (like Apple).

  20. JohnNo Gravatar 11. Mar, 2014 at 4:23 pm #

    Common Guy,

    The weird thing is this is a real estate forum and we are discussing about stocks. Let’s take the top 200 US big cap and smal cap stocks and say you picked 10 of them. No smart investor is going to buy 1 stock and ride it, unless he knows something or he is just pure lucky or really dumb. Let’s be honest, you name only one or a handful of stocks that collapse.

    Land in my mind is one of the worst investments since it doesn’t cash flow and very hard to leverage. Out of all the investments, I have made, land was the worse,unless you have lots of money never will touch that again. Saw so many people during the recession lose their land to foresclosure, even I lost quite a bit. When times are so bad, you are screwed.

    The reason I can comment on real estate, stocks is because I have done them all. In the end the average person who wants to make a steady buck real estate is the way to go.

    With real estate it’s poker, you are using your knowledge and wits to make the best informed decision with little money to get the best return, kinda like last man standing. What I try to do is find the next undervalued area like 2.5 years ago Northwest was way underpriced compared to the south side.