Edmonton Real Estate Blog

For those of you looking for this update on my usual Monday morning I apologize as it was a very hectic day yesterday.

Well the market continues to improve.  As of this morning there were 2,458 single family homes on the market in Edmonton proper, while there were 869 sales in the previous 30 days.  That give us a listing to sales ratio of 2.83:1. This ratio is again lower than last week and at this level is a strong indicator that valuations should be rising.

The biggest driver to the market has been the first time buyers as homes have become so affordable since the devaluations that had occured since May 2007.  And these other statistics do support that.  Of the 869 sales that occured in the last 30 days a full 56% of them were for homes under $350,000, 26% were for homes between $350,000 – $450,000, and only 18% were for homes that sold over $450,000.

Based on those kinds of numbers I would expect to see the rebound in valuations in the lower price ranges before we see it trickle up to the higher valued homes.  Again making it all that more important that if you are a first time buyer or a buyer looking to upgrade to a more valuable home to act sooner than later.

According to figures released by the Canadian Mortgage and Housing Corporation (CMHC) in May, housing starts in the Edmonton Census Metropolitan Area (CMA) totalled 355 units in April compared with 683 units in April 2008. After four months of activity so far this year, total housing starts have amounted to 1,116 units across Greater Edmonton, down from 2,998 units recorded during January to April of 2008.

Builders poured foundations for 206 single-detached homes in April, representing an increase of almost 16% from the 178 units started in April 2008. “This represents the first year-over-year improvement in single-detached activity since June 2007,” noted Richard Goatcher, CMHC’s Senior Market Analyst based in Edmonton. To the end of April, 607 single-detached homes began construction across Greater Edmonton, down from 835 units during the first four months of 2008.

Multi-family starts, which consist of semi-detached, row and apartment units, remained on a downtrend in April. A 26% year-over-year gain in row starts was offset by continued weakness in new apartment activity. Semi-detached, row and apartment starts totalled 149 units in April, representing a decrease of about 71% from the 505 multiple unit starts in the same month last year. Multiple starts have amounted to 509 units across Metro Edmonton from January through April, down nearly 77% from 2,163 multiple starts tallied in the first four months of 2008.

Housing starts in Alberta’s seven largest cities totalled 794 units in April, representing a decrease of 61% from 2,034 units in April 2008. All seven cities reported year-over-year declines.

Things keep improving for sellers and there is more bad news for buyers.  As of today on the listed on the Realtors Association of Edmonton there are 2,491 single family homes listed in Edmonton proper.  In the previous 30 days there were also 837 single family homes sold.

That would give us a listings to sales ratio of 2.98:1.  This ratio have been dropping every week since we broke the 4:1 neutral market barrier and is telling us that valuations are rising.

You buyers need to get into the market as soon as possible to get the best deal and possibly save yourself thousands of dollars.  Please feel free to  call me on my cell 780-995-6520 if you would like some help finding that next home.

Sales activity on the Edmonton Multiple Listing Service® increased in April as compared to last month and April 2008. There were 3,019 residential properties listed in April with sales of 1,843 (up 33.6% from last month and 1.1% from April 2008).

The average* price of single family homes in the Edmonton area was up 1% from March but, at $353,386, was still 8.5% below the last April price of $386,033. Condo prices were up 2.4% from last month to $236,020 while duplex/rowhouse prices were up 5.2% at $291,068.

“Increased sales activity is evident in most real estate offices and some REALTORS® are reporting multiple offers on select properties,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “However, inventory is still relatively high and sellers should price their properties aggressively to attract offers.”  

The number of residential properties available through the MLS® System on April 30 was 7,539 – up 1% from last month but well below the glut in April last year when there were 10,606 properties available. The year-to-date sales-to-listing ratio is just 46% but the April S/L ratio of 61% is an indicator of increased activity. Average days-on-market in April was 51 – a number last seen in March 2008.

“REALTORS® are optimistic about the Edmonton market,” said Ponde. “In-migration figures are positive, retail sales in Alberta are still higher than the rest of the country and unemployment figures are lower than other parts of Canada. First-time buyers are entering the market because of historically low interest rates and renovation incentives are encouraging move-up buyers to consider relocation.”

Total sales through the MLS® System for the month were valued at $635 million with a year-to-date total of $1.75 billion. Total YTD sales value is down 23% from the same time last year but sales are off by just 16%

Source: Realtors Association of Edmonton

Weekly rate minder provided by: Narish Maharaj Dominion Lending Centres Optimum (780) 238 – 7038 Apply online : www.dlconline.com

Buyer should beware… prices are going to rise!!!

As of today there are 2,435 single family homes for sale in Edmonton proper.  That is a slight drop from last week, so inventory is shrinking.  In the past 30 days there were 798 homes sold in Edmonton proper.  Now that is an increase from previous weeks.

That gives us a listings to sales ratio of 3.05:1 well below the 4:1 we need for a balance or neutral market.  It is also the 4th consecutive week that we have been below that 4:1 ratio.  As a result I am convinced that we are going to see valuations rising if they are not already.

Buy now if you are going to buy because you will pay more later.

For all of you that were looking for the statistics yesterday I apologize for being a day late.  I will continue to try and post them on monday morning.

As of today there were 2,529 residential listings in Edmonton proper. A number that seems to be holding fairly stable at the moment.  However the number of sales are on the rise.  In the past 30 days there were 778 single family homes sold in Edmonton proper.

That would give us a listings to sales ratio of 3.25:1.  That is the third straight week in a row that the ratio has been below that crucial 4:1 level.  This is an indicator that valuations are going to be rising.

So if you are thinking of buying do it now and potentially save yourself thousands of dollars.

Existing MLS® home sales activity increased for the second month in a row in March 2009, according to statistics released by CREA. The number of new listings also continued trending lower in March, which firmed up the balance of supply to demand.

A seasonally adjusted total of 31,135 homes traded hands nationally via the MLS® in March 2009. This is an increase of 7% from the previous month, and builds on the 10.3% activity gain in February. The number of transactions in March 2009 stands 18% above levels reported in January 2009, when activity sank to the lowest level in a decade.

The monthly increase in activity was largest in BC (13.6%), and Ontario (10.5%). Sales were also up from February levels in Manitoba, Quebec, and Newfoundland & Labrador.

Actual (not seasonally adjusted) transactions numbered 35,225 units in March 2009. While this remains 13.7% below levels reported in March 2008, it is the smallest year-over-year decline in six months.

The national average price for home sales via the MLS® remains below levels reached one year earlier, but year-over-year declines are shrinking. The MLS® average residential price for homes sold in March 2009 was $288,641, down 7.7% from March 2008. This is the smallest year-over-year decline in six months.

The average price for homes sold via the MLS® set a new record in March 2009 in Manitoba, and remained above year-ago levels in Saskatchewan, Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador.

The national average price continues to be skewed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions at the higher end of the price spectrum. British Columbia, Alberta and Ontario, where homes are more expensive, are significant contributors to the current downward trend in national average price. MLS® home sales activity in these provinces accounted for 69% of national activity in March 2008, compared to 67% in March 2009.

The price trend is less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was down 4.7% year-over-year in March, compared to a 5.1% decline in February.

“Housing markets are starting to show signs of buyer interest because of lower prices and interest rates,” says Dale Ripplinger, President of CREA. “We expect April sales activity will feel some effects from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan, and the First Time Buyer Tax Credit.”

More information on the national market can be found on www.crea.ca under Media Centre.

Local information including the latest press release and statistics can be found on www.ereb.com for the public or on the intranet for REALTORS®.

Weekly rate minder provided by:

Narish Maharaj

Dominion Lending Centres Optimum
(780) 238 – 7038
Apply online :
www.dlconline.com