Edmonton Real Estate Statistics – Feb. 01, 2010
It is interesting what people know – ‘inside people’ that is. This weekend I started working with a buyer that I had not worked with before. During the time we spent together I asked her why she was looking to buy a home at this time. Basically what she said to me was because of working at Alberta Treasury Branch she is aware what is going to be happening to interst rates and their forecast of rising prices this year. She felt that she needs to buy now before prices and interest rates go up.
As of this morning there are 1,419 active single family dwellings for sale in Edmonton proper. In the last 30 days we have had only 380 sales. Again the sales were slow but expected to have a seasonal slow down in January. However that give us a listing to sales ration of 3.73:1, which is a drop from last weeks number of 4:32:1, and below the 4:1 ratio that we need for a neutral market.
This ratio would support the fact that we are going to start seeing upward pressure on valuations as long as that ratio stays below that 4:1 ratio.
So if you are a first time buyer please don’t wait, we know that valuations are going to go up and that interest rates are going to go up. Also, if you are thinking about moving to a larger and more expensive home you want to sell and buy right away before valuations go up. The reason for that can best be explained in this example: Let’s just assume that your current home is worth $300,000 and the next home you will buy will be valued at $500,000. If the market were to rise 10% then your home would go up $30,000, but the home you would be buying will have gone up $50,000. Waiting to get a higher selling price will actually cost you $20,000. So make the move now before valuations go up, and now while there is limited competition to sell your home.
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
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