Edmonton Housing Market Stabilizes

Edmonton’s housing market didn’t change drastically through October, but rather remained stable. Inventory dropped slightly throughout the month, with a total of 9,577 residential properties available on the Multiple Listing Service as of October 31st. October started out slow, but sales picked up towards the end of the month.

Single family dwellings sold for an average price of $397,198, just 0.6% lower than September. The average price of condominiums dropped by 2.9% to $262,875 and the average price of duplexes and rowhouses rose by 18.7% to $367,964. Overall, the average price of all residential sales rose 1% to $347,668.

October saw fewer new listings (down by 5.45%). Twenty-six percent of single family homes that were listed for sale were vacant, and an additional 9.3% had never been lived in. Similarly, 30% of condominiums listed for sale were vacant and 5.7% had never been lived in.

On an average, listings remained on the market for 44 days in October, up one day from September.

Please continue reading to see the whole Edmonton Real Estate Board press release.

 



















For release: November 5, 2007  
Contact: Carolyn Pratt, REALTOR®, 2007 President Bus: (780) 455-4181
  Ron Hutchinson, C.A.E., Executive V.P. Bus: (780) 453-9340
  Jon Hall, C.A.E., Manager Communications Bus: (780) 453-9323

14220 – 112 Avenue
Edmonton, Alberta
Canada  T5M 2T8

Bus: (780) 451-6666
Fax: (780) 452-1135

Resale housing market maintains stability

Edmonton, November 5, 2007: Edmonton’s housing market maintained stable through October with small changes in average prices for most types of residential property. Multiple Listing Service® inventory dropped slightly to 9,577 residential properties available on October 31.

“REALTORS® report that sales activity was very slow at the beginning of October,” said Carolyn Pratt, President of the REALTORS® Association. “But activity picked up as the month progressed and the current market reality came clear to both buyers and sellers.” After single family dwelling prices peaked in May, many consumers waited for the direction of the market to become clear before committing to a home purchase. “Sellers, eager to market their house before prices dropped too far, listed their homes with high expectation,” said Pratt. “Buyers, on the other hand, took their time selecting a property to purchase in the hopes that prices would drop further.”

Single family dwellings listed on the Multiple Listing Service® sold on average* for $397,198 in the Edmonton area in October. This is down just 0.6% from last month. Condominiums on MLS® sold on average for $262,875 (down 2.9%) and duplex/rowhouses were up 18.7% and sold for $367,964 on average (just 55 units sold). Increased duplex/rowhouse sales drove the average residential sales price (which includes all types of residential property) up 1% from last month at $347,668.

Buyers had plenty of choice in October. New listings were down 5.25% from last month with 3,745 residential properties, and higher residential sales of 1,276 (up 22.5% from September), lowered the MLS® inventory slightly to 9,577 in the Edmonton area. Twenty-six (26) percent of the available single family homes were vacant and an additional 9.3 percent were new homes which have never been occupied. There were 970 vacant condominiums (30% of total condos available) plus 185 (5.7%) new condos being offered by REALTOR® clients.

“An empty property often indicates that the seller is motivated to sell,” said Pratt. “The owner may have moved into a newer home and is carrying two mortgages or may not be able to find a tenant at rental rates required to cover the higher purchase price.” She also advised that an owner may not be in a rush to sell a second, vacant home if it was mortgage free.

The average days on market was up one to 44 days. Sales-to-listing ratio was higher than September at 34% and total residential volume for October was $443 million; down 15.2% from the same month last year. Total MLS® sales for the year to date was still at a record level of $7.4 billion because of strong sales in the first half of the year.

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* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact your local REALTOR®.

The REALTORS® Association of Edmonton (Edmonton Real Estate Board), founded in 1927, is a professional association of 3,221 Brokers and Associates in the greater Edmonton area. The Board administers the Multiple Listing Service®, provides professional education to its members and enforces a strict Code of Ethics and Standards of Business Practice. The EREB also advertises property listings and publishes consumer information on the Internet at www.mls.ca and www.ereb.com, as well as in the Real Estate Weekly and on their web site at www.rewedmonton.ca. The EREB supports charities involving shelter and homeless through the Edmonton Realtors’ Charitable Foundation (ERCF).

Highlights of MLS® activity

 

October 2007 activity  Record for
the month*
% change from
October 2006
Total MLS® sales this month 1,451 -32.30%
Value of total MLS® sales – month $534 million -13.40%
Value of total MLS® sales – year $7.4 billion* 30.80%
Residential¹ sales this month 1,276 -32.50%
Residential average price $347,668* 25.70%
SFD² average selling price – month $397,189* 21.70%
SFD median³ selling price $377,500* 19.80%
Condo average selling price $262,875* 25.80%

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

For more information contact:
Jon Hall, Marketing and Communications Manager
Bus: (780) 453-9323
Fax: (780) 452-1135
E-mail: query@ereb.com