Edmonton Real Estate Blog

The REALTORS® Association of Edmonton reports that the number of residential properties sold through the Multiple Listing Service® in Edmonton in May was up over 17% as compared to the previous month and up 18.7% over the same month last year. There were 3,180 residential properties listed with sales of 2,161. The sales-to-listing ratio was 68% as compared to 42% in May 2008.

“Sales continue to rise month-by-month,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Listing activity, while not as frantic as last year, is still active so there continues to be a good supply and variety of homes available.”  

Prices in the local market also continued their slow, steady climb. Single family homes sold on average* for $367,672 in May; up 4% from last month but still 4% lower than a year ago. Condominiums sold for $244,734 on average which was 3.7% higher than April prices. Condos are still priced 6% lower than last year at this time. The average residential price was $326,332 up 4.6% from last month but down 4.2% from a year ago.

“Prices are still lower than last year but rising steadily,” said Ponde. “So house hunters should be making their buying decisions sooner rather than later to ensure that their buying power is not eroded by the rising prices.” He noted that some REALTORS® have been able to present multiple offers to their sellers.

At the end of May there were 7,435 homes available in the MLS® System inventory and homes sold, on average, in 52 days (as compared to 51 last month and 53 last May). At 3.4 months, there is a typical amount of inventory available at current sales volumes. Total MLS® System sales in May were 2,395 properties valued at $787 million. Year to date sales are valued at $2.5 billion. 

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

I am amazed to see the listing to sales ratio continue to drop each week like we have seen in recent weeks.  There is no doubt in my mind that valuations specially in the under $350,000 is rising.  That is mainly due to the fact that the affordability and low interest rates has allowed the first time buyer to come back into the market.

As of this morning there were 2,289 single family homes listed for sale in Edmonton proper.  In the last 30 days 904 single family homes were sold.  That gives us a listing to sales ratio of 2.53:1 again a further drop from last week, and dropping us below the 4:1 benchmark needed for a balance market.

Eventually we should see the increased sales volume and valuation increases in the upper price ranges as the market continues to improve and we see the individuals who have sold their homes in  the lower prices purchase their new homes in the upper price ranges.

Let’s see what next weeks brings us…

MLS® Activity for April 2009

Source: Realtors Association of Edmonton

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.

Well I have to say that I am impress with the numbers that I am currently seeing.  As of today there are 2,510 single family homes listed in Edmonton proper.  That number has been holding pretty steady over the last little while which is good to see.

Also the sales in the past 30 days have increased to 811.  This is definitely a trend that most people want to see with the exceptions of buyers.  With those numbers that give us a listings to sales ration od 3.09:1 again much lower than the 4:1  that is needed for a neutral or balanced market.

So look out boys and girls valuations are rising whether we like it or not.

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

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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.