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Edmonton Real Estate Stats - What to Expect Next Week
7 o$ I9 K+ E3 E4 R. M! G) UWell, next week the much anticipated press release from the Realtor's Association of Edmonton will come out, and along with it our charts and analysis of the real estate market. For the past few months Sheldon and I have been watching the listing inventory rise, and predicting a price correction. We called for it in June and July and it didn't come (statistically) and then received plenty of angry emails and comments that we were fear mongering. ! `& k% |' v$ g2 H+ j0 B6 `$ B% y
' _6 v! A% O$ M, L/ v) i) [ n+ P( VSales were down (5 year low), listings were up (record high) and despite this the average price held very strong, which shows the resiliency of the market. However, this can't continue forever - listing inventory can't keep rising, and sales can't keep dropping (just like we said when the market was red hot). The market is certainly cyclical and is currently correcting in Edmonton.
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Some media outlets reported a prediction of a 10% price drop in August for Edmonton. In my opinion they misinterpreted the statements the Realtor they interviewed made. He was discussing the advice he gives to clients when they need to reduce their asking price:3 T, ]5 R1 ~4 M" t* x: m9 R' ^
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"There’s no sense reducing any product by 5% because it just doesn’t work. We’re seeing reductions of 10% and more.", r$ ?/ t( T0 Q8 }* X
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That does not mean that prices are going to fall 10% in one month. The Realtor's Association has already reported that 85% of homes sold in August sold under list price, averaging at $12,000 below asking price. $12,000 seems like a good chunk of money, but it's only a few per cent off the average home, so when people call for 10% price reductions in one month we're talking about a serious chunk of change.
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u$ K* x( N1 I& G: ZOur predictions for the August stats:- v7 U. F, Z2 g7 G( V
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Listing inventory over 9,000 $ \, w+ V2 _+ y/ ]/ C! }; j( U2 k4 I
Sales below July (1812) which would reflect a more seasonal trend.
0 |4 f" V( M& \1 q! f' JAverage sale price for single family homes will drop, condos/townhomes are a hard call but I don't see the same drop there that we'll see for single family 0 w8 O: W( Z7 y% ?! f) J0 M. o
Obviously we'll see the absorption rates climb for most price ranges. In some areas we're seeing far more inventory then in others for specific types of properties.
$ e: |* w) J. B0 vThe end of the world has been vastly overstated by a some. If you are thinking of selling, there is stiff competition out there which means marketing, service and accessibility are now more important than ever. If you're thinking of buying, there is more to choose from than ever and there are some pretty great deals out there if you know where to look. As a buyer, interest rates are predicted to go up, so get a rate reserved...a 5% price drop can be quickly erased by a .25% increase in interest rates.
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All in all there is still a pretty rosy future for our lovely province, a correction was certainly needed and welcomed by most buyers. We still expect things to pick up again in the not too distant future...The rate of inventory coming on the market appears to be peaking but that may be seasonal as well. 4 c0 y0 w& N8 E! F8 b
Stay tuned we'll have the stats and our graphs up asap. |
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