Edmonton Real Estate Blog

Last week I was really excited to see the listing to sales ratio drop below the 4:1 ratio that we need for a neutral or balance market. I guess that was short lived because that ratio did not stay below the 4:1 ratio.

As of today there are 2,174 single family homes listed for sale on the Multiple Listing Service for sale in Edmonton proper. In the last 30 days there were 496 sales a slight drop from the previous week. This will give us a listing to sales ratio of 4.38:1 slightly higher than what we need for a balance or neutral market.

With the ratio bouncing just over and just under the benchmark ratio it is indicating to me that the market is not sure which directions it wants to go so we will probably see a fairly stable valuation of homes for the time being.

Once I see at least 3 consecutive weeks of the ratio being one direction of other we will not really know which way it is going.

Just like I have been telling you would happen the market has changed from a buyer’s market to a seller’s market.

As of today there were 2,126 single family homes listed on the Multiple Listing System (MLS ®) in Edmonton proper. That is an increase of 92 listings from last weeks inventory level of 2,034

More importantly there was 535 homes sold on the Multiple Listing System (MLS ®) in Edmonton proper in the previous 30 days. That is an increase of  106 sales from last week’s number of 429 sales.

This gives us a listing to sales ratio of 3.97:1 which is a significant drop from las weeks and is now marginally below the 4:1 ratio that is the benchmark for a neutral and balanced market.

I say we are swinging over to a seller’s market beause I expect that ratio to continue to drop even lower in the next few weeks and we are going to see upward pressure on home valuations.

If you are thinking of buying then the sooner you make that move the better price that you will get.  With all that is driving the Edmonton economy at this time I continue to expect the Edmonton Real Estate market to continue to grow stronger.

This has been a year of ups and downs as we saw house values increase in value from January until the beginning of June. We did however see valuations drop about 10% since that time giving back any gains that we might have made in the beginning of the New Year.

The good news is that the listing to sales ratio has drastically improved in the last month. As of today December 13th, 2010 there are 2265 single family homes for sale in Edmonton proper. In the past 30 days there have been 525 single family homes sold in Edmonton proper.

This would give us a listings to sales ratio of 4.31:1. That is a significant improvement over the ratio hovering around the 6:1 that we saw last month and is basically at the 4:1 ratio that we need for a balanced or neutral market.

The window of opportunity is closing for people thinking of buying. With the oil and gas industry going so strong right now I am fully expecting this ratio to drop over the next 3 months and we will start seeing valuations increase.

If you don’t buy now you will probably have to pay more money for your next home come the New Year.

That is my last two cents until the New Year. I would like to wish everyone a Happy Holidays and a prosperous New Year.

 Make sure to read our BLOG every week to see how the trend changes.

As we enter our spring marketplace we are seeing the market continue to be strong.  As of this afternoon April 08, 2010 there are 2,348 single family homes listed in Edmonton proper.  That is up slightly from last week’s number of 2,240 available homes for sale.

In the past 30 days we have seen 749 single family homes sold.  That is up from last week’s number of 661 sales in the previous 30 days.  That is a significant increase for a one week period.

What is more important is the listings to sales ratios.  That ratio is now 3.13:1, lower than the 3.31:1 ratio that we had the previous week.  This indicates to me that we are still going to see continue upward pressure on valuations.

If you are thinking about buying this year you might want to consider buying right away.  You have two threats that you have to consider if you have been thinking of buying.  Firstly, we know that there is pressure for prices to continue to go up.  Waiting will mean you will have to pay more for that home you want.  Secondly, there is the expectation that interest rates will go up again this summer.  If this happens it will make your mortgage payments more expensive and will reduce the amount of a mortgage that you will be able to qualify for.  The new mortgage rule changes require that you be approved at the 5 year rate regardless which term you choose.

If you are thinking about moving up to a larger, more expensive home, again you want to make the move as soon as possible.  Yes, your home will go up in value, but your future home will have gone up more significantly that your current home.  The end result is that you will have to carry a larger mortgage by waiting for your home to get to a higher value.

This is my two cents for this month.  

If you have any questions please don’t hesitate to call.  I would love to help you. (780) 634-8151

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.”

Single family residences in the Edmonton area sold on average* for $388,473 in March which is up 4.7% from February and 11% from a year ago. Condominium prices rose by 8.4% month-over-month and 10.5% year-over-year. The average condominium sold for $252,416 in March. Duplex and rowhouse prices (at $313,836) dropped a third of a percent in March but were up 10.4% from a year ago. The average residential price was $343,607 (up month-over-month by 8.5%).

Sales also demonstrated the optimism of the marketplace. 3,728 residential listings in March were up over 30% from a year ago and up 246% in the first quarter. Residential sales of 1,571 properties in March were up 15.1% from a year ago and 77.3% in the first quarter. Sales were up from 1,307 in February: a 20.2% increase. The March sales-to-listing ratio was 42%; down from 52% in February.

“Seller activity has boosted the inventory to 6,770 residential properties,” said Westergard. “I am less concerned about available inventory now than I was at the beginning of the year. I think the market has reached a balance between buyers and sellers.”

All major banks raised their fixed mortgage rates in late March and the Bank of Canada has warned that interest rates will rise again after the second quarter. Many buyers are hurrying to lock in rates and find a home before the more stringent qualification requirements for mortgages come into effect on April 19. Alberta will not be influenced by the GST harmonization taking place in Ontario and BC so we may not see the sales slump in the second quarter that is expected in those two provinces.

The average days-on-market in March was 41 as compared to 47 in February.

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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

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

Source: REALTORS® Association of Edmonton

Well it is appearing that the Edmonton real estate market might be stabilizing.  As of this morning there were 2,240 single family homes for sale in Edmonton proper.  That is an increase of 113 homes over last week.

In the past 30 days there were 661 single family homes sold in Edmonton proper.  That is an increase of 42 homes sold over what sold in the previous 30 day period.  That will give us a listing to sales ratio of 3.39:1, which is slightly better than last week, but I would be cautious to think valuations are going to rise again.  I think we are going to see more stabilization at this time unless we start seeing the ratio drop further in the coming weeks.

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

As I anticipated, the trend is continuing.   The number of listings coming on the market is outpacing the number of sales.  As of this morning there were 2,127 single family dwellings in Edmonton proper on the market an increase from last week’s inventory level of 2,003. 

In the last 30 days we had 615 single family dwellings sold in Edmonton proper.  That number is actually down from last week’s number of sales of 619. 

This gives us listings to sales ratio of 3.46:1 up again from last week’s ratio of 3.24:1.  So the pressure for valuations to rise is easing and could very well go the ratio of 4:1 very soon.  If we break that we can start seeing valuations drop. 

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

Well as I expected to see the inventory level is starting to creep up as we get deeper into our spring marketplace.  As of this morning there were 2,003 single family dwellings listed on MLS in Edmonton proper.

In the last 30 days there was 619 single family dwellings sold in Edmonton proper also an increase from last week’s totals.  This however gives us a listing to sales ratio 3.24:1 which is an increase from last week’s ratio of 3.06:1.

This is not a trend that I am liking to see at the moment as that ratio get closer and closer to 4:1 then we wiil see the market become neutral.  If the ratio goes over that number then we might even see valuations drop again.

With the new mortgage rules coming into effect on April 19, 2010, and the potential for an interest rate increase shortly that might negatively affect the market.

If you a buyer you will want to get approved and buy before the April 19, 2010 mortgage rule changes as it will reduce the amount of mortgage you will be able to get.

Well the market is doing exactly what I was expecting it to do as we get further into this spring market place.  As of today there are 1,829 single family dwellings for sale in Edmonton proper which is up from last week.  As we get closer to the spring months we will see the number of listings for sale increase.

In the last 30 days there were 598 single family dwellings sold in Edmonton proper.  That give us a listing to sale ratio of 3.06:1 which is a slight increase from last week.  That is still lower than our neutral point indicating upward pressure on valuations. 

However it might be starting a new trend where we might see a more neutral market if the number of listings coming on the market continues to increases at a faster rate than the number of sales.

Edmonton, March 2, 2010: Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.  

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

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

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

Source: REALTORS® Association of Edmonton