More Buyer-Friendly Market for Edmonton House Hunters

The Edmonton housing market seems to be shifting slightly from the previous “seller’s market” to a more buyer friendly market. On September 5th, the Edmonton Real Estate Board released their August market activity statistics, which indicated that as of August 31st, 4,331 residential units were listed – 1,674 more units than were listed in August of 2006.

Not only is there more inventory available for house hunters, but property prices have also dropped slightly. Average prices for condominiums have declined by 1%, duplexes and rowhouses dropped 2.8% and average residential prices have declined 2.84%. While this is not a significant decrease, it is still a welcome change in the hot Edmonton housing market, especially for first time home buyers, who often suffer from sticker shock.

To read the full Edmonton Real Estate Board press release, please follow the “read more” link.

Growing inventory reintroduces spring housing prices

Edmonton, September 5, 2007: Single family homes in the Edmonton area are selling, on average, for just slightly more than last March. There were 747 SFDs sold through the Multiple Listing Service® in August at an average price of $403,757. This is down 3.2% from the average price of $417,150 in July 2007. The average price in March was $398,476.

For the second month in a row, the inventory of available homes on the MLS® set a new record for the Edmonton market. There were 9,185 homes of all types available as of August 31, 2007. Residential sales (1,299) were below the 2,079 figure for August 2006 and the five year average of 1,657 units. The unusually high inventory has accumulated because of higher than average property listings since May. There were 4,331 residential properties listed in August which is up 63% from the previous August (2,657). The sales-to-listing ratio was just 30% down from 35% last month.

“Eventually, every house will find a buyer,” said Carolyn Pratt, President of the REALTORS® Association. “In this market, buyers have a lot of choice. Sellers must be creative in their marketing and ensure that their home is shown in the best light to capture the attention of potential buyers.” She advised sellers to ask their REALTOR® for advice on home staging or small renovations that might improve the appeal of their home. “Often a few hundred dollars to fix some minor imperfections can result in a faster sale,” she said. “People buy with their hearts as well as their wallets and sometimes the price is irrelevant when someone falls in love with a property.”

Condominium average prices fell by just 1% to $269,139 from $271,908 last month. Duplex and rowhouses dipped 2.8% to $329,764. After rising 2% in July, the average residential price dipped 2.84% in August to $344,792 and the median price was $380,000 in the greater Edmonton area.

“Every homeowner or potential home buyer is keeping their eye on the housing market right now,” said Pratt. “REALTORS® are optimistic and see any price dips as temporary and within the normal range for this market.” She urged buyers and sellers to explore all their options with their REALTOR® and heed their advice which is based on daily contact with the marketplace. “This market changes rapidly and two years or two weeks could require a different marketing approach. Even a homeowner with prior experience of buying or selling a home needs professional representation to understand the new (and changing) forces that drive this market.”

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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 3,273 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 mls.ca and ereb.com, as well as in the Real Estate Weekly and on their web site. The EREB supports charities involving shelter and homeless through the Edmonton Realtors’ Charitable Foundation (ERCF).

Highlights of MLS® activity

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(at)ereb.com