Here’s an interesting article from this weekend’s St. Albert Gazette. It’s a nice reflection of the changes going on in the market, specific to the St. Albert real estate market. Things are certainly looking up! There were 99 homes sold in the city in April, a 39 per cent increase over the same month last year. The increased activity pushed the average price to $405,000. The average sale price was $393,000 in the first quarter of 2009 and $377,000 in March. “People have realized now that we have adjusted our prices and the trend is showing that the prices are not going any lower,” said Charlie Ponde, president of the Realtors Association of Edmonton. The volume increase comes after a poor March, when sales were 20 per cent less than the same month last year. “The realtors are busy. Some of the properties are getting multiple offers,” Ponde said. Much of the increased market activity is coming from homeowners who bought before 2006 who are now looking to move up the “property ladder,” said James Mabey of Sutton–Nor-Vista Realty. Prices are slightly up and many homes are selling within $10,000 of their list price, he said. “Several months ago I would have said it was totally normal for every buyer out there to be lowballing you by 20 or 30 thousand bucks,” Mabey said. “Right now it is a little bit tighter especially if you are a good and unique property.” Inventory levels in St. Albert sit at about 234 single-family homes and 111 multi-family, a little more than half the peak numbers reached last year. April and May are typically the busiest months of the year in real estate, Mabey said. Sales volumes are up 1.1 per cent in the Edmonton area, compared to April 2008. Here’s the link to the original article on the St. Albert Gazette’s website: http://stalbertgazette.com/news/2009/0509/top4.htm
By Cory Hare
Staff Writer St. Albert Gazette
The average home price in St. Albert is back above $400,000 as April home sales eclipsed the volume posted in the same month last year and even bested the levels seen in super-heated 2007.
Here's the Edmonton Real Estate Board's review of the April stats for real estate sales. It gives an indication of the changed marketplace, but I don't think it tells the whole story. There's a lot of carry over into May, so watch for that market update to see a bigger sign of the change. - John Carle Edmonton, May 4, 2009: 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%. -30- Highlights of MLS® activity ¹. Residential includes SFD, condos and duplex/row houses. Contact
April 2009 activity
Record for the month*
% change from
April 2008
Total MLS® System sales this month
2,008
-1.90%
Value of total MLS® System sales - month
$635 million
-9.00%
Value of total MLS® System sales - year
$1.7 billion
-23.00%
Residential¹ sales this month
1,843
1.10%
Residential average price
$312,127
-7.40%
SFD² average selling price - month
$353,386
-8.50%
SFD median³ selling price
$337,000
-1.00%
Condo average selling price
$236,020
-8.10%
². Single Family Dwelling
³. The middle figure in a list of all sales prices
Charlie Ponde
REALTOR®, 2009 President
Bus: 780-460-8558
Ron Hutchinson
C.A.E., Executive V.P.
Bus: 780-453-9340
Jon Hall
C.A.E., Manager Communications
Bus: 780-453-9323
Hi Mr. Carle.
I have a question for you. I stumbled upon a Edmonton Real Estate blog where you were giving advice to someone, and it sounded pretty reasonable, so I thought I would seek your advice also.
Currently I own a house in Spruce Grove. It is occupied by renters, and has been since I bought it in 2005. My question is whether or not it would be beneficial to purchase a second house at this time?
Mortgage rates are great apparently right now and as first time home owners there is apparently no better time. I say 1st time homeowner because my last house was purchased without a mortgage, so I think I still qualify for a first time homeowners plan.
Having said that however, it seems probable that the prices on houses will likely drop a bit further, and perhaps waiting is the ideal plan.
Well, that is my dilemma, if you can offer any advice, I would appreciate your opinion. Please email me at ……… if you find it convenient to reply.
Sincerely,
Kristy
Hi Kristy;
Thank you for your email! I’m glad to hear that you’re enjoying my blog at www.knock-knock.ca
Deciding if it’s time to buy a 2nd house is a personal decision, and heavily influenced by your own circumstances. So please keep that in mind when making a buying decision.
But in terms of the current Edmonton real estate market; I think it’s an excellent time to buy. Let’s face it, interest rates are ridiculous! That makes for some serious housing affordability. Likewise, prices are the lowest they’ve been in several years.
Ideally, people want to buy at the bottom of the market, when prices are the lowest. Well I think we’re darned close to the bottom. Sellers who have been trying to sell for 12+ months are very wiling to negotiate with you, there’s no doubt about it. Combine that with the current interest rates… well, you get the picture. The Edmonton real estate market is ripe for the pickings.
I hope this helps. Let me know if there’s anything I can do to be of help.
Last night I had a call from an Edmonton real estate agent, asking me if a condo in south Edmonton that I’m currently marketing is still for sale. I told her that it had an offer pending on it, but that she was welcome to show it.
Her response was shocking. “Do you have anything else in South Edmonton? I can’t find them anything! It’s all pending or sold.”
I haven’t had a Realtor in Edmonton tell me that in a long, long time. More than 2 years, to be sure.
That’s a good sign for the Edmonton real estate market. Obviously inventory is being gobbled up, buyers are getting back a sense of urgency, and the market is recovering.
WOO HOO!
Hi John;
We were in touch today with the banker today on the house we bought in Edmonton, and they want to know if we want a variable rate or fixed rate mortgage? What do you think?
- Steve & Kristy
Hi Guys!
Well, that’s a tough question. It really depends on your own comfort level. I think rates will stay low for a while, so you’re probably safe to stay variable. But keep a close eye on the rates… when they start to climb, lock that mortgage into place.
I have another client who gave me a brilliant idea. Tell your banker to base your payments on a fixed rate of 6.0%. Any extra payment will go against your principle, and you’ll pay it down faster. This way you can really take advantage of the current low rates. When rates start to climb, you can still lock in below that 6% level… and thus not face increased payments. Just a thought for you.
Have a great day, and I’ll see you next month with your keys!
- John Carle
Edmonton ReMax Real Estate Agent
www.knock-knock.ca
(780) 231-7534
John Carle is a top Realtor in Edmonton, servicing the entire area. He can be reached at www.knock-knock.ca His motto is "a Nice Realtor for Nice People"; which sets the tone for everything he does.
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