First quarter housing prices hover around $350,000

Edmonton, April 2, 2009: The average* price of single family homes in the Edmonton area has hovered around the $350,000 mark for the first quarter of this year, reported the REALTORS® Association of Edmonton. At the beginning of January the average price for a SFD was $351,870. The price varied slightly and at the end of March the average SFD price was $349,716, up 0.7% from the previous month. Condo prices were a little more volatile but popped up 1.6% in March to $230,469, after a 5% drop in February. The average price of a duplex/rowhouse was $276,776.

“With price stability, low interest rates, spring weather and pent-up demand; it appears that REALTORS® are starting to get busy again,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Our offices are reporting an increase in buyer interest. Sales in March were up 28% from the previous month.”

Residential sales through the Multiple Listing Service® in March totalled 1,380 units. Total MLS® sales (including commercial and rural sales) were 1,513 units. This is a 30% increase over the previous month. Total residential sales for the first quarter were 3,185 units and total MLS® sales were 3,471 with a YTD value of $1.1 billion.

There were 2,891 residential listings in March (down 31.7% from last March) resulting in a month end inventory of 7,476 residential properties (down from 9,464 in March 2008). The sales-to-listing ratio was 48% and average days-on-market was 56 days (down five from February).

 “The market is once again operating in a normal fashion with typical seasonal fluctuations,” said Ponde. “REALTORS® are prepared with daily statistics and market knowledge to help clients understand the market fluctuations and advise them on pricing and marketing strategies that help buy and sell homes and commercial properties.”

REALTORS® (who are all members of the REALTORS® Association of Edmonton) have just completed their annual membership renewal. Some members choose renewal time to withdraw or retire from the industry so membership numbers dip slightly at the end of March. So far the renewals are typical and the Association expects that the more stable market will encourage most REALTORS® to remain in the industry.  

Highlights of MLS® activity

March 2009 activity	Record for the month*	% change from March 2008
Total MLS® sales this month	1,513	-11.50%
Value of total MLS® sales – month	$480 million	-21.30%
Value of total MLS® sales – year	$1.1 billion	-29.20%
Residential¹ sales this month	1,380	-11.40%
Residential average price	$309,032	-10.10%
SFD² average selling price – month	$349,716	-9.80%
SFD median³ selling price	$334,000	-10.80%
Condo average selling price	$230,469	-12.40%

 

 January 6, 2009: Coming off a peak in May/June 2007, residential prices remained stable for the first part of the year but slowly slipped downward as the year progressed. The average price for all residential property sold through the Edmonton Multiple Listing Service® dropped just 5.7% during 2008, reported the REALTORS® Association of Edmonton. The average* all-residential price (single family, condominiums, rowhouses and duplexes combined) was $329,705 on January 1 and fell to $310,974 by December 31.

“The Edmonton housing market peaked about a year before the rest of the country,” said Marc Perras, president of the REALTORS® Association of Edmonton. “The dramatic price drops happened in the last half of 2007 and this year our market responded in an orderly manner with a slight rebound at the beginning and a slow softening in the second half. We have seen the peak and the market is settling in at this new level although there will be the usual seasonal fluctuations.”

Sales lagged through the first half of the year and the inventory reached record levels of over 11,000 properties in May. Stronger sales in the third and fourth quarters ate into inventory and by year end there were 6,316 homes available on the MLS®. Total residential sales were down 15% in 2008 as a result of the higher prices and economic uncertainly.

“Single family homes suddenly took a price drop in December but condo prices rallied,” said Perras. The average price for a single family dwelling dropped 3% to $351,870 after negligible change for two months. Condo prices, which had dropped over 8% in the two previous months, were up 1.2% over the previous month. At the beginning of the year an average SFD was priced at $382,022. At the end of December the price is just $30,000 less at $351,870. Condo prices over the year dropped from $253,270 to $234,286; a 7.5% decline. “Sellers resisted the market and global forces that dragged prices down but will eventually discover that buyers will not buy at last year’s prices,” said Perras. “Buyers have lots of choice right now and seem willing to wait until their dream house reaches their dream price point.”

At the end of December there were 6,316 homes in inventory after residential listings of 1,319 and sales of 608 in December. The sales-to-listing ratio was 46% and average days-on-market was 65 days in December (up 2). Total residential sales for the month were down at $189 million and total sales for the year were just $5.8 billion; down from $6.9 billion in 2007. Total MLS® sales were $6.6 billion down from $8.2 billion last year.

Threat of global recession to hinder home sales

 in major Canadian housing markets in 2008 and 2009, says RE/MAX

Recovery linked to economic stability next year

Monthly Update From The Realtors Association Of Edmonton

November 2008

Edmonton, December 2, 2008: REALTORS® had lots of time to work with their best clients in November as housing sales slowed. The number of residential sales during the month dipped to levels not seen since 1998. The average price of a single family home in the greater Edmonton area remained stable while condo prices dropped for the second month in a row, reported the REALTORS® Association of Edmonton.

“Our members report that there are a lot of potential buyers in the market but many are not ready to commit,” said Marc Perras, president of the REALTORS® Association of Edmonton. “They are being cautious and hoping for further price drops or lower interest rates that reflect the current global economic situation.”

The average* price of a single family residence was down slightly (-0.14%) in November offsetting a slight rise in October. The average price of a single family home was $362,757. Condominium sales took another drop in November (down 2.55%) with an average price of $231,531. Duplex and rowhouses sold on average for $315,813 which was up 2.8% from October. The average residential sales price (including all types of residential property) was $318,588; up by a quarter of a percent.

“Sellers may be losing heart but even in this slow market there were still about 30 housing deals made every day and every home that is priced appropriately will eventually find a new owner,” said Perras. There were 8,015 homes in the local MLS® inventory at the beginning of this month (down 510). 2,036 homes were listed during November and 891 were sold resulting in a sales-to-listing ratio of 44% as compared to 40% last month. Average days-on-market was up five days to 63 and total MLS® sales (including commercial, industrial and residential) was $319 million in November, a drop of $144 million from last year’s November.

CREA Forcast for 2009

MLS® home sales activity will continue cooling trend

In line with the recent downward revisions of Canadian economic and job growth forecasts, CREA is updating its MLS® housing market forecast for the balance of 2008, and 2009. National home sales activity is now forecast to decrease by 12% to 461,200 units in 2008, and decrease by 3% in 2009. The number of new listings is forecast to decline further from the peak reached in the second quarter of 2008, with levels in 2009 on par with levels in 2007. Fewer new listings will stabilize the resale housing market in 2009. Average home prices will reach new heights in nearly all provinces in 2008, but declining activity in higher priced markets will hold the national average price stable this year compared to 2007. The national average price is forecast to ease by 2.1 per cent in 2009.

MLS® residential average price forecast	2007	2007 annual % change	2008 forecast	2008 annual % change	2009 forecast	2009 annual % change
Canada	$305,822	10.80%	$303,900	-0.60%	$297,600	-2.10%
British Columbia	$439,119	12.30%	$451,100	2.70%	$416,100	-7.80%
Alberta	$356,235	24.80%	$353,200	-0.90%	$349,200	-1.10%
Saskatchewan	$174,405	32.00%	$221,100	26.80%	$218,000	-1.40%
Ontario	$299,544	7.60%	$303,600	1.40%	$302,600	-0.30%

Canadian economic growth is forecast to start improving in the second half of 2009 before accelerating in 2010. Re-aligning housing market balance and improving home affordability will set the stage for an improving housing market in 2010.

“Canadians are definitely concerned by the economic news out of the US, and much of that news stems from distress in the US housing market. Canadians should realize that Canada’s economy and housing market are both in better shape. This means the downturn in Canadian consumer confidence will pass and when it does, housing demand will rebound, especially when they realize the window of opportunity to buy at reduced prices and at low interest rates will begin to narrow once economic growth shows signs of rebounding next year.”

A brief video broadcast about this housing market information featuring CREA President Calvin Lindberg and CREA Chief Economist Gregory Klump are available on www.crea.ca.

Monthly Update From the Realtors Association of Edmonton

October 2008

Despite global economic unrest and uncertainty in other North American housing markets, Edmonton seems to be maintaining an even keel according to figures released by the REALTORS® Association of Edmonton. October residential resale figures were lower than last October but within the normal range for this time of year. Overall prices were down but single family residences gained slightly in price.

“Sales typically slow in the fourth quarter and this year is no exception,” said Marc Perras, president of the REALTORS® Association of Edmonton. “Stronger sales in the third quarter may have reduced demand in October but REALTORS® are still busy assisting buyers and sellers with their transactions.”

The average* price of a single family residence was up one third of a percent (0.33%) over September at $363,274. Condominium sales took the biggest single month drop this year resulting in condo prices down by 5.8% with an average price of $237,590 during October. Duplex and rowhouses sold on average for $307,178, which was down 2.7% from September. The average residential sales price (including all types of residential property) was $317,784; dragged down by the lower condo prices.

“Listings were still strong in October although the inventory of homes available on the MLS® continued to reduce toward the normal levels,” said Perras. There were 3,116 homes listed during the month with 1,251 sold for a sales-to-listing ratio of 40% (55% in September). At the end of the month there were 8,525 homes available – down from 8,808 last month. The average days on market also dropped from 61 to 58 days in October.

Total residential sales for the year are now $5.3 billion with total MLS® sales (including commercial and rural sales) over $6 billion. The business community remains confident in the Edmonton market as demonstrated by 150 industrial, commercial and investment sales and agribusiness sales during October.

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Highlights of MLS® activity

October 2008 activity	Record for the month*	% change from October 2007
Total MLS® sales this month	1,409	-2.89%
Value of total MLS® sales – month	$456 million	-14.60%
Value of total MLS® sales – year	$6.08 billion	-17.90%
Residential¹ sales this month	1,251	-1.90%
Residential average price	$317,784	-8.60%
SFD² average selling price – month	$363,274	-8.54%
SFD median³ selling price	$342,750	-9.08%
Condo average selling price	$237,590	-9.62%

Kelowna, BC (December 3, 2008) -- Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns to the financial sector, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

“Canada’s real estate environment is considerably more complex than it has been in recent years,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The landscape is definitely changing - with most markets shifting into either balanced or buyer’s territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.”

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

“Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored.   That said, we could see a bounce back as early as spring – if inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity.”

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

“While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec. “In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.”

RE/MAX is Canada's leading real estate organization with over 18,000 sales associates situated throughout its more than 670 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 35th year, is a global real estate system operating in close to 70 countries.  More than 7,000 independently owned offices engage more than 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management. For more information, visit: www.remax.ca.