Edmonton Real Estate Continues to Set Records
Edmonton Real Estate Board spokesman Jon Hall reckons that's because migration is strong. The 20,845 people who came to Alberta in the first four months of this year represent a 138% increase over the same period last year.
We feel it's not just the increase in migration, but also a big increase in investment from outside of Edmonton. We're seeing a lot of investment from Calgary and Vancouver - which is also reported in the Edmonton Sun - as we are working with more and more buyers from these areas. These people have been dealing with this type of market for 2 or more years, and Edmonton is cheap to them! There is still a long way to go before we catch up to their prices, so hold on tight, it's going to be a wild ride.
Consumers struggle with hot housing market
Edmonton, July 6, 2006: The current real estate market is unlike anything that consumers have ever seen in Edmonton. Consumers on both sides of the transaction struggle to understand the new language and market mechanics of escalating prices, multiple offers, unconditional sales and low housing inventory. REALTORS® work closely with clients to educate them about the market. Their objective viewpoint helps both buyers and sellers to minimize the frustration and desperation that results from lost sales or missed buying opportunities.
Property sales through the Edmonton Real Estate Board Multiple Listing Service® (MLS®) in the first six months of the year have soared well above expectations. Total MLS® sales to date are 13,313 up 19% over the same period last year. Escalating prices have further contributed to record-breaking MLS® volumes.
However, higher sales are drawing down the available inventory. At the end of June there were only 1,859 residential properties available for sale on the Edmonton MLS®. Last June there were 4,592 active listings.
The average days-on-market was 19 days (similar to 20 in May and 19 in March). “The official days-on-market figure is extended by unattractive properties or those that are clearly overpriced,” said Madeline Sarafinchan, EREB President. “Liveable, well-priced homes often sell in just four or five days. Buyers have to respond quickly when a property becomes available. They must have their needs and wants clearly identified, have financing in place and be prepared to remove conditions as soon as the offer is accepted.”
Consumer desperation is rising along with prices. Sellers want to ensure they get top dollar for their property without scaring buyers away. Buyers, on the other hand, are aware that they may have to offer more than the list price but don’t want to exceed competing offers by too much. Consumers need the advice of a REALTOR® to set both realistic and attainable asking and bid prices.
The average* price for single family dwellings in June rose 5.8% from May. The average price for a single family dwelling was $298,631 in June.
Average condominium prices went up 8.2% in a month to $186,738 in June. Duplexes and townhouses sold for $227,810 on average – an increase of just 1% from last month.
The average residential price (includes all types of housing) has increased from $197,884 in December to $254,240 in June. This is a 28% increase in the first six months of the year. Real estate sales are typically most active in the second quarter and then slow down for the rest of the year. However, housing prices are expected to rise steadily for the rest of the year in the face of heavy demand and low interest rates.
“Year-to-date MLS® sales topped $3 billion dollars in June,” said Sarafinchan. “That’s over two months earlier than last year. I am readjusting my forecast to say that total MLS® sales for the year will top $5 billion – up from $4.25 billion last year.”
June 2006 activity Record * % change from 2005
Total MLS® sales this month 2,610* 6.6%
Value of total MLS® sales - month $682 million* 34.1%
Value of total MLS® sales - year $3.16 billion* 43.1%
Residential¹ sales this month 2,183* 2.3%
Residential average price $254,240* 27.5%
SFD² average selling price - month 298631 32.7%
SFD² median³ selling price $279,900* 33.6%
Condo average selling price $186,738* 29.4%