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Thursday, April 06, 2006

Edmonton Real Estate News

Released by the Edmonton real estate board this news release reflects the current markets challenge for buyers. With multiple offers at just about every turn it is definitely not a market for the faint of heart. In a market where the most motivated often wins we have picked off some excellent deals especially off of Com Free owners who have clearly underprice and were definitely under represented. In one such case we estimate we obtain the property for our buyers at least $20,000 under market. The buyer feels we saved them much more.

Homeowners challenged by brisk Edmonton housing market

Edmonton, April 5, 2006: Brisk sales continue to topple real estate records. REALTORS® sold over $1 billion in real estate in the first quarter. The benchmark figure was set on March 21 with sales of 4,607 units worth $1.004 billion. The same mark was set on April 19 in 2005.

“The housing market is very challenging right now for both buyers and sellers,” said the EREB President. “REALTORS® are reporting an increasing number of sales with multiple offers and sellers demanding offers with no conditions.” Anxiety is high on both sides of the transaction and REALTORS® have to exert a calming influence to maintain peace of mind for their clients.

The strong demand for housing and low inventory levels has resulted in unprecedented brisk sales with homes being on the market for just 19 days on average. The previous low DOM was set in April 2002 at just 25 days. With 2,333 properties on hand at the end of March, the MLS® has enough inventory to last just 36 days. However, it is replenished with over 70 new properties being added each day.

The average price* for single family dwellings rose 2.49% over February to $256,159. Condo prices were up 6.84% to $156,988. Even lower average prices on duplexes and rowhouses (down 2.5% to $193,378) weren’t enough to influence the average residential price. The average residential price hit a new all time high of $220,124 in March; up 4% from a month ago.

“Establishing a pricing strategy has become very complicated,” said Sarafinchan. “Both buyers and sellers are advised to work closely with their REALTOR® who has access to up-to-the-minute pricing data and experience at working with this competitive market.” She is aware of homes that have sold for amounts well over the asking price and buyers who have upped their offer dramatically after losing out on two or three bidding battles. “Every buyer will eventually find a new home but it takes patience, nerves of steel and an ability to react quickly when the right home comes along.”

March 2006 activity Record * % change from 2005
Total MLS® sales this month 2,282* 20.50%
Value of total MLS® sales - month $519 million* 41.20%
Value of total MLS® sales - year $1.18 billion* 44.40%
Residential¹ sales this month 2,016* 20.00%
Residential average price $220,124* 16.10%
SFD² average selling price - month $256,159* 18.50%
SFD² median³ selling price $246,250* 21.90%
Condo average selling price $156,988* 17.40%

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

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

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