It’s a Buyer’s Market

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It appears that the Edmonton housing market has become more of a buyer’s market after last year’s insane real estate boom. Not only are home prices leveling out and becoming more affordable, but there is more inventory on the market, as well – which means more choice for buyers. As of May 5, 2008, there were 10,606 properties listed on the Multiple Listing Service.

For the month of April, the average price of a single family dwelling was $386,033, a 0.4% decrease from March. Condo prices are also declining; they saw a drop of 2.3% to an average price of $256,947, which is good news for first-time buyers that are looking to find an affordable first home. Contrary to single family dwelling and condo prices, the average duplex/rowhouse price rose 2.3% in April to $316,065. Overall, residential property prices fell by 2% to an average price of $336,931.

To view the full press release from the Realtors Association of Edmonton (formerly known as the Edmonton Real Estate Board), please continue reading.

MLS® housing sales and prices remain stable in April


Edmonton, May 5, 2008: The REALTORS® Association of Edmonton reported that the average price for single family homes dropped less than half a percent after three months of small increases. April sales of all types of residential property through the Multiple Listing Service® were lower than the two previous years at 1,823 units but higher than the more typical years of 2004 and 2005.

“The Edmonton housing market is stable and buyers and sellers seem to be coming to a realistic view of housing prices,” said Marc Perras, president of the REALTORS® Association of Edmonton. “In this market, with a very high inventory, pricing is a key component of a successful sale.” While the typical sale is completed at 97% of the asking price many sellers have had to reduce their price to find the level that would attract a buyer.

Single family dwellings sold on average* for $386,033 in April just 0.4% down from the previous month. SFD prices are still 6.6% lower than April 2007. Condos sold on average for $256,947, a decrease of 2.3% from last month. On the other hand, duplexes and rowhouses sold during April were priced 2.3% higher at $316,065 on average. Overall, the average price for all types of residential property was down 2% at $336,931 when compared to March and down just 2.1% from a year ago.

There are 10,606 residential properties currently available on the MLS® (up 12% from last month’s record inventory). The average days on market was just 52 days; up one from March. There were 4,471 residential listings during the month and the sales to listing ratio is a low 41%. Total residential sales were $1.99 billion and total MLS® sales were $2.3 billion.

“It is hard to draw comparisons to last year,” said Perras. “Prices were still going up at this time last year and inventories were about one quarter what they are now. It’s a much different market in 2008.” He encouraged all buyers and sellers to consult with their REALTORS® for the best advice on current market trends and conditions.

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Highlights of MLS® activity

April 2008 activity Record for
the month*
% change from
April 2007
Total MLSsales this month 2,047 -25.80%
Value of total MLSsales – month $699 million -28.80%
Value of total MLSsales – year $2.27 billion -27.50%
Residential¹ sales this month 1,823 -25.30%
Residential average price $336,931 -2.10%
SFD² average selling price – month $386,033 -6.60%
SFD median³ selling price $372,500 -6.60%
Condo average selling price $256,947 -1.60%

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

Contact:

Marc Perras REALTOR®, 2008 President Bus: (780) 483-4848
Ron Hutchinson C.A.E., Executive V.P. Bus: (780) 453-9340
Jon Hall C.A.E., Manager Communications Bus: (780) 453-9323

* 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 3,226 Brokers and Associates in the greater Edmonton area. The Association administers the Multiple Listing Service®, provides professional education to its members and enforces a strict Code of Ethics and Standards of Business Practice. The Association 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 Association supports charities involving shelter and the homeless through the REALTORS® Community Foundation (RCF).