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Saturday, May 06, 2006

Edmonton Real Estate Market Report

Here is the monthly news release produced by the Edmonton real estate board. Being out in the market everyday, I can say there is a very high demand for housing. We've recently sold 3 homes for $10,000-$15,000 over list price, with multiple offers, the first day on MLS. Here are the stats...

Edmonton, May 2, 2006: The Edmonton Real Estate Board reports that the resale housing market remains animated. The booming economy and high demand are causing housing prices to rise beyond forecast expectations. In January EREB forecast that residential sales would remain at last years record levels but that prices would rise 8%. So far this year sales have risen 12.4% and prices are 18% ahead of the same time last year.

“This market is nothing like the 80’s boom,” said Madeline Sarafinchan, EREB President. “Prices are increasing steadily but housing is not overpriced. Mortgage rates remain low and consumer confidence is high.” She added that there is no increase in foreclosures and resale property retains its value because it is priced well below new construction.

Inventory levels for resale housing are lower than typical. The MLS® residential inventory at the end of April was 2,219 as compared to 4,810 last year. As a result sales are animated and buyers are forced to make decisions quickly when they see an attractive property.

Average days on market in April was just 23 days. Slightly slower than March (19 days) but still half of last year’s April figure of 46 days.

The average price* for single family dwellings rose 3.7% over March to $265,557. Condo prices were up 3.6% to $162,565. Average prices on duplexes and rowhouses finally topped $200,000 at $221,941 up from $193,000 last month.

The average residential price hit a new all time high of $226,846 in April (up 3.0% from the previous month).

Over 40% of single family homes on MLS® sold at or over the list price in April. “In the market today you need to have a sophisticated pricing and negotiation strategy,” said Sarafinchan. Last April less than 15% of sales met or exceeded the list price. “Solid, reliable information about recent sales and neighbourhood trends can only be obtained from your REALTOR® who has records of 91% of the residential sales in Edmonton.”

Highlights of MLS® activity
April 2006 activity Record * % change from 2005
Total MLS® sales this month 2,300* 12.9%
Value of total MLS® sales -
month $532 million* 33.9%
Value of total MLS® sales -
year $1.72 billion* 45.0%
Residential¹ sales this month 2,026* 12.4%
Residential average price $226,846* 18.2%
SFD² average selling price -
month $265,557* 21.3%
SFD² median³ selling price $254,900* 21.9%
Condo average selling price $162,566* 20.9%

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.

If you're thinking of buying or selling, contact us for information and advice on dealing in this incredible active market.

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