Weekly Market Update, May 9/14

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: 664 (615, 451, 567)
# Sales: 346 (369, 296, 411)
Ratio: 52% (60%, 65%, 72%)
# Price Changes: 284 (220, 178, 155)
# Expired/Off Market Listings: 90 (207, 67, 84)
Net loss/gain in listings this week: 228 (39, 91, 72)
Active single family home listings: 2532 (2372, 2349, 2274)
Active condo listings: 1607 (1519, 1494, 1462)
Homes 4-week running average: $426k ($426k, $419k, $422k)

Condos 4-week running average: $252k ($251k, $250k, $248k)Well hello new listings! Where have you been all spring? We've missed you!

Seriously though, that's a big jump in listings. I'm seeing little signs here and there that we might have a new trend of rising inventory starting. It's much needed, as there is still quite a lot of demand out there, but if it rises too much or too quickly it could take the wind out of the market. 

ListingsandSales 1
Listings and Sales
EdmontonHomePrices 1
Edmonton Home Prices

We just got access to these cool new "heat maps" that show us a map representation of the market. This one shows the number of new listings in the past 30 days by area with the red areas being hotter and the green ones cooler. Seems to be a lot of new listings in the central area and outer limits - the space between is cooler. 

Screenshot 2014 05 09 12 26 15
Listings Heat Map

Sales show a similar pattern but there are some interesting differences:


Screenshot 2014 05 09 12 28 54
Sales Heat Map

I know buyers looking in Sherwood Park and St. Albert will be relieved to see some listing activity there, but I hear things are pretty crazy out there.

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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42 Responses to “Weekly Market Update, May 9/14”

  1. MTNo Gravatar 09. May, 2014 at 3:48 pm #

    [from last week]“…and tell me 123kid, how does overpriced housing and over-extended home owners help anyone? ”

    Q: It doesn’t. Well, maybe it helps the banks make money, but it sure doesn’t help buyers.

    The fact is, the historically low mortgage rates are allowing buyers to get financing, but pushing them higher and higher into what is considered unaffordable.

    Is there a silver lining to housing prices continually going up? I guess the home owners can use their line of credit as an ATM and keep borrowing more as valuations go up too. They could also sell to the next bag holder and get out before the music stops. Or buy an extra house or two and sell for more. After all, we are in Alberta, our memories are short and we love our booms.

  2. JoeNo Gravatar 09. May, 2014 at 5:41 pm #

    For me it is obvious that market is cooling off….There is nothing crazy as Sara is saying ….and market going down….

    It is getting cheaper ….People are in debt up for their neck…..
    that what`s going on….

    don`t twist the obvious true…

  3. JohnNo Gravatar 09. May, 2014 at 5:56 pm #

    I’m not sure why people even want to time the market and not buy. Long term everyone needs a house to live in, raise their family. I lived in BC for most of my life, but after living here, almost impossible to leave here. Edmonton real estate compared to other parts in Canada is still affordable with all the jobs this place has to offer.

    The biggest mistake, I see people make is selling their properties to do something else. Houses in Westmount 12 years ago were $100,000-$130,000, what are they worth now? People have asked me, how can you be so sure that 10-15 years from now prices will go higher. The reason is that labour, materials, popluation growth, land prices closer to downtown will generally be higher.

    My top pick 2.5 years ago was Inglewood. The last 3 months gone on a tear (RF3 zoning), not much listings. With billions of dollars worth of projects in downtown, still think undervalued. Just 6 months ago lots were selling for around $260,000, and you can build 2 side by side duplexes. The site when finished is worth over $800,000+ (builders making lots). Even if you could find a decent home there for $350,000, 1,200 sqft home, think it’s pretty good. You can live in it and your land will appreciate because eventually you can build 2 dwellings.

    • JoeNo Gravatar 09. May, 2014 at 7:59 pm #

      Please John unless you are real estate lying agent……how many good jobs Edmonton created…..don’t make me laugh….
      There is no boom in drilling anymore….like in 2005…..
      Right now you have stagnant economy….and already housing price have tendency to go down…
      It is only CMHC scam driving people towards buying…..and rising price…..
      get a fresh water to drink and think about it…
      don’t tell me that 500000 house is worth it to buy……
      and be a slave to your end of life…..

      So buy house yourself with CHMC help please and don not annoy me ….and invest….

    • FeatNo Gravatar 09. May, 2014 at 11:26 pm #

      Even if we are enjoying the lowest interest nowadays, house price is still so weak. So just assume what is gonna happen after the interest raises up. Does everyone believe the interest is gonna be remained as it is for coming 20 years?

      • CastledownsNo Gravatar 10. May, 2014 at 11:47 am #

        You’ve been wrong and he’s been right for the past 6 years.

        Fed Funds Rate: Turning Japanese, I Really Think So

        Nov. 17, 2008 3:11 AM ET |

        As most of you probably already know, with the “effective” Fed funds rate much closer to zero percent than to the one percent prescribed by the “target” short-term rate , the Federal Reserve has already edged closer than ever before to a dreaded ZIRP (zero interest rate policy).

        A ZIRP really isn’t that bad, unless of course you’re a saver, in which case the disparity between “real-world” inflation and the numbers concocted by governments in their “official” version of the same will end up eating you alive over time.

        For banks and hedge funds, ZIRPs are great because they’re a cheap source of funding for all kinds of wild speculative bets that are bound to inflate another asset class eventually.

        As discussed in this report in The Economist, we are turning Japanese:

        REMEMBER Japan’s zero interest rates? America is almost there too. Since October 29th, the target for the federal funds rate has been at 1%, but the rate at which funds actually change hands, known as the “effective rate”, has averaged around 0.25% (see chart).

        The Federal Reserve does not always hit its target on the nose but the size of the gap is extraordinary. If it persists, any decision to lower the target further would be meaningless since it would not affect the rate banks actually pay.

        link to seekingalpha.com

      • JonNo Gravatar 10. May, 2014 at 12:00 pm #

        Keep in mind that interest rates only go up as inflation goes up, and real estate performs very well during inflation. An example – prices tripled in the late 70s as interest rates went from 5 to 15%.

      • TonyNo Gravatar 12. May, 2014 at 7:45 am #

        I’m quite sure rates will actually go lower during the next 20 years. America is toast, their economy is already back in recession and the dead cat bounce in their housing market is over. Housing is once again falling in America. The spillover effect from America will hit this country hard especially commodity prices. Even with oil prices manipulated at some point in time they’ll make new lows below 35 dollars U.S. a barrel.

  4. RippedNo Gravatar 09. May, 2014 at 6:57 pm #

    Chirp Chirp

    I’m in my new digs and did I ever score!

    I got myself a fully furnished large 1 bdr basement suite in Twin Brooks. It’s a two year old suite built to code, my own private entrance, all my appliances including washer and dryer, all the utilities including Telus Optik and Wi-Fi, the flat screen has 900 friggen channels.

    The place has big windows, lot’s of light, curved corners, hardwood floors, I can run around in the shower or sit down, modern furniture… it’s f $$ king nice…lol

    All this for $895 a month!

    I looked at some trash suites before this and I looked downtown at 1 bdr and bachelor high rise apartments so small you couldn’t bend over inside them, I also felt like a minority being white there. You would have to pay one of your utilities and your cable and wi-fi, unfurnished, coin washer and dryer down the hall. It was depressing.

    Cheers,
    Ripped

  5. JOeNo Gravatar 10. May, 2014 at 10:32 am #

    Sara doesn`t like the idea that people in debt up to their hair…….and who cares about houses anymore….
    they try to make a monthly payments…..
    the Statistics say in Edmonton
    1.5 % below the price from march 2014.. and they will go down..

    Look at the spec homes …just sitting on the lots….and waiting for the suckers….to buy…
    Even CMHC doesn`t help anymore……

    • GMNo Gravatar 10. May, 2014 at 5:47 pm #

      If housing started to go down CMHC will ease its restrictions again and go back to allowing 10% down. And the government will ease up on buyers too, allowing 30 or even 40 year mortgages again.

      ESPECIALLY if an election is on the horizon.

      • TonyNo Gravatar 12. May, 2014 at 7:50 am #

        The opposite will happen and credit will dry up as was seen after the real estate crash in America. You may see grants of 5 to 10 thousand dollars given to first time buyers in the future like the 3 thousand dollar grant and 5 thousand dollar interest free loan back in the early 1980′s.

  6. JohnNo Gravatar 10. May, 2014 at 8:30 pm #

    It seems like some people feel investing in a property is a really bad thing. Stats don’t lie, see what houses cost 2.5 years ago compared to now, especially the mature neighbourhoods.

  7. EdNo Gravatar 11. May, 2014 at 8:47 am #

    You can almost smell the fear in some of the comments above.

  8. JOeNo Gravatar 11. May, 2014 at 3:28 pm #

    Hi John,

    YOu are saying that starting from 1970 prices tripled ….but your short memory doesn’t remember that people were living houses in 80thies because houses crashed….
    Why don’t you buy something right now….just buy it…I will sell you my house..

    common JOhn….gave a guts….and buy it….buy it and flip…..
    buy the golden ring for wife and golden plate for your dog….
    buy it…take a loan….help the Canadian Economy…..be a patriot JOhn…

    • ItchyNo Gravatar 11. May, 2014 at 4:10 pm #

      For God’s sake people, stop feeding the trolls.

    • GMNo Gravatar 11. May, 2014 at 5:23 pm #

      Joe… Joe… Calm down.
      Here. Take a pill.

  9. JohnNo Gravatar 11. May, 2014 at 7:41 pm #

    Joe,

    When did I say anything about the 70′s, I just mentioned about 2.5 years ago. I was buying th top areas for my family 12 years ago in south Glenora for over $200,000 and now in the $600,000+. I just started on my own 2.5 years ago and built over $200,000 equity.

    I invest for the long term like 10 years+, not a flipper. There is so much you can do with a house compared to renting. You can rent out the basement and build equity. On average a house will make $15,000+ a year, with $6,000 knock down every year and historically a house will go up 2-3 percent. If you do a 5 percent down mortgage with $16,000 down, you practically have made your money back.

    Now especially with the city giving mature neigh ourhoods RF3 zoning, your land has gone up even more.

    I’m not here to fight with anyone, but have you seen anybody that has built wealth as renters.

  10. JohnNo Gravatar 11. May, 2014 at 7:48 pm #

    Just 3 years ago you could buy some houses in Westmount for under $300,000, good luck doing that now. If you can always buy the best areas if it makes sense.

  11. JohnNo Gravatar 12. May, 2014 at 9:33 am #

    Not sure why people are so upset here. Anybody who has invested in the market, especailly older homes has done pretty well in the last couple of years. Too bad we can’t setup something like the REiN group and we aren’t payiing $180 a month. This is a forum to discuss about real estate and how we can alll make money. There is just too much negative energy here.

  12. JimNo Gravatar 12. May, 2014 at 9:36 am #

    new homes are priced crazy. unless you make >=150k in the wild north or lucky enough in the City, you don’t want go 600k and above. for most new “job” takers, cheaper townhouse shall be the go. will see. best time to sell larger homes for sure.
    Sara may have some numbers for different price range and property type. that will be helpful.

  13. dwayNo Gravatar 12. May, 2014 at 9:59 am #

    Jim New homes are not priced crazy …. I sell New Homes & did 9 sales last month. The biggest factor to my large amount of sales is the Resale stuff out there does not show well for the price. And many buyers can get in to a new home for less. My Prices start at 350,000 for a detached garage Homes & sell a beautiful Double front attached Garage with den and bonus room for $435,000 “in the south west.” If you look at com parables you will see nothing but Duplexes. Also Renters are getting squeezed with Annual increases, If it continues a lot of Renters will opt to build.

    • JimNo Gravatar 12. May, 2014 at 4:31 pm #

      i looked at Griesbach. 450,000 for a detached garage Homes 600k for double front attached Garage. which community you are selling? Im very interested.

  14. Karl HungusNo Gravatar 12. May, 2014 at 11:00 am #

    I too find new houses fairly cheap. When lots in the city go for $300,000 but new builds on the outskirts go for $350,000, seems cheap.

  15. LesNo Gravatar 12. May, 2014 at 2:34 pm #

    John Thanks for your post it is actually good information.

    I have decided to buy a house as well, renting a house will probably cost $2000 right now.

    Not sure why Joe is so upset, Edmonton and surrounding areas are doing well, Lots of money invested in Downtown and surrounding areas…Let’s just keep building this City.

  16. JohnNo Gravatar 12. May, 2014 at 4:35 pm #

    I don’t want to knock new home buyers, but I think it is the biggest mistake to buy a new home for appreciation. Historically, you can take anywhere around the world and you can see places in decent neighbourhoods near downtown have risen the most.

    What people don’t realize is the commute time, wear and tear on your car and convenience of all the shops around you without having a car. Also, mature neighbourhoods like Westmount have so many trees, larger lots and the old style charm.

    The reason I like real estate so much is because you can see all the stats and predict what will happen in the future.

    • CastledownsNo Gravatar 12. May, 2014 at 6:02 pm #

      100% agree with you John.

      You simply don’t have a life when you have to spend an hour to go to work, then an hour to come back from work. The closest public school is full, your kids are forced to believe Jesus for a Catholic spot. The closest library is probably in Leduc but you are not eligible for a membership. The entire life feels like stuck in a vehicle than in your own house.

      Thanks but no thanks to no life.

      • yeglandNo Gravatar 13. May, 2014 at 8:55 am #

        Not everyone works downtown. There are lots of businesses (Industrial, Commercial….) in the suburbs. This isn’t Vancouver or Toronto, where commutes can be over an hour one way.

        Even from the far SE there is a direct bus route and a person can be downtown in 20 mins if they want to be. There are lots of new City facilities being and have been built in new neighbourhoods including libraries, rec centers….

        There are lots of new lots that back on to well established green spaces with large mature trees too. I live in the SE and a 5 min walk to the East and I am on walking trails around Fulton Marsh (Trees and trails), a 5 min walk to the West and I can do all of my shopping, and a 5 min walk to the south brings me to a brand new City facility with a new library, Rec center and more. The kids have a one block walk on a nice green belt to a new school, its pretty good.

        I think we have it pretty good here in Edmonton, no matter where you choose to live.

        • gregNo Gravatar 13. May, 2014 at 1:51 pm #

          clearly you don’t ride edmonton transit very regularily

    • wsnNo Gravatar 13. May, 2014 at 8:51 am #

      Please compare apples to apples. You just can’t compare a 1950 shack to a brand new 2014 house, because the living standard is as different as day and night.

      It would be a fair comparison if you compare new construction infills to new houses. Let’s just compare Westmount to Griesbach:

      1) A typical lot in Westmount is at least $350k. If you build a suitable (i.e. not a match box on an expensive lot) house, the total cost would be $1M.

      2) For that cost, you will have a 4000~5000sf narrow lot with a 2800 sf house with back lane garage in Westmount.

      3) For the same cost, you will have a 5000~7000sf medium lot with a 3000 sf house, that’s walking out to a pond. Front double garages, or triple tandem garage. New street infrastructures, no visible power lines. Reasonable amount of trees and green space.

      4) The commute time is about the same to downtown.

  17. 123kidNo Gravatar 13. May, 2014 at 10:48 am #

    What John is getting at is called the YVR (Vancouver) effect. (I assume there is also a HKong, London, New York, effect. Basic notion is location location location; closer to the Central Business District tends to get you better returns than those living in the ‘urbs.)

    Simple really.

    • wsnNo Gravatar 13. May, 2014 at 10:01 pm #

      LOL.
      McCauley.

  18. 123kidNo Gravatar 13. May, 2014 at 10:52 am #

    Joe is choked. He may have purchased a new glitter home in the outer lying areas of YEG (vinyl sided, crappy concrete, fly by night contractors, etc….)

    (wsn… not saying that Windermere is in the boonies, but it still is the sticks).

    • JoeNo Gravatar 13. May, 2014 at 4:54 pm #

      yeah…..choked by real estate propaganda…..

      enjoy your assets for below 2% new affordable mortgage rates from Investors Group……..

      just buy it….right now they are just pushing you to buy…..how you can refuse it……
      Just work and slave to pay your mortgage…..EHHHHHH Canada!! :)))
      don’t forget to by that diamond ring and golden platter for your dog…
      Mercedes Benz has 1% below official rates…..

      ;;;;;;;;;;;;PARADISE…………………………………..

      • GMNo Gravatar 13. May, 2014 at 8:15 pm #

        I’m sensing a note of bitterness… perhaps regret that you didn’t buy earlier and are perhaps now priced out of the market?

        Just a guess…

      • gregNo Gravatar 13. May, 2014 at 9:20 pm #

        just work and pay your rent to a landlord then. Simple

    • AndriiNo Gravatar 14. May, 2014 at 7:42 pm #

      Every Canadian home is crappy . If you don’t believe me , ask any builder from Europa .

  19. SpudNo Gravatar 13. May, 2014 at 8:58 pm #

    Joe just curious why you come to a real estate blog if you are so negative to real estate. Seems an odd use of time.

    • wsnNo Gravatar 14. May, 2014 at 8:48 am #

      He is not confident about his choice. He needs to voice his concern to other people, as a form of justification for himself.

      • JoeNo Gravatar 14. May, 2014 at 4:11 pm #

        Everyone here is praising what? CMHC scam with low interest rate…
        Inflated Canadian particle boards……?
        Wait a little ( together with me) and the particle shacks with Canadian finished cellar will be worth what should be……50% down…
        in Edmonton prices just flat…very flat…just beginning…

  20. AndriiNo Gravatar 14. May, 2014 at 7:32 pm #

    Well done Joe . It is not time to buy now , it is time to sell for those who is smart. But you know , it is different in Canada and everyone will find his grater fool . Price like stupidity has no limit , debt and income have it .