Cominghome Real Estate Blog

One Realtor’s thoughts & musings on Edmonton real estate—and other deliberations.

June Numbers - Sales Up, Listings Down (slightly)

Posted by Craig Pilgrim on 4 July 2008

Every month I review, modify/ adapt, and post the MLS® data for Edmonton and area real estate activity. The information is adapted from the REALTORS® Association of Edmonton Monthly MLS® Report and Press Release. You can view the original report in its entirety by visiting the REALTORS® Association of Edmonton website. Click HERE for a graphical representation of Edmonton’s prices over the course of the calendar year.
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The inventory of homes on the Edmonton Multiple Listing Service® (MLS®) is still at near record levels although sales in June were better than the last month and the number of new listings dropped over seven percent. Buyers and sellers seem to be in a standoff with both sides just beginning to accept the reality of the current market. Single family dwelling and condo prices have been stable during the first half of the year yet some people still anticipate dramatic price shifts.

“Although sellers have received higher prices in the past year, about half of them lowered their asking price by seven percent on average to get a sale,” said Marc Perras, president of the REALTORS® Association of Edmonton. “Some buyers seem to think that further discounts are possible and are delaying their buying decision unnecessarily. The market finds its own level and has varied within a three percent range over the last six months. REALTORS® have buyers who are staring down the sellers but sometime soon someone will have to blink.”

The dynamic tension between buyers and sellers has kept prices stable so far this year. Single family dwellings were down a half percent in June, selling for $381,384 on average*** while condos were up a half percent, selling for $262,365on average in the Edmonton market. During the first half of the year prices have only varied slightly from the year end price with SFDs up 0.25% and condos up 3% for the year-to-date. The average days-on-market was up two to 55 days and the average residential price (which includes all types of housing) was also up slightly month-over-month at $341,376 and just 4% lower than the peak price of $354,718 set in July 2007.

“Historically, there has never been a better selection of homes available in this market,” said Perras. “Additional inventory is coming into the market every day but obviously better quality homes sell first. Buyers should be taking advantage of the current conditions and making a buying choice before prices rise or inventory drops. Sellers should be discussing pricing strategies with their REALTOR® to ensure that they have adjusted their asking price to be in the right price range for this market.”

***Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact me directly***
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June 2008 Activity Record for
the Month *
Percent Change from
June 2007
Change From
May
Total MLS® sales this month 2,093 -17.0% á
Value of total MLS® sales - month $738 million -19.1% á
Value of total MLS® sales - year $3.72 billion -28.6% á
Residential¹ sales this month 1,852 -15.9% á
Residential average price $341,376 -3.9% á
SFD² average selling price - month $381,384 -8.6% â
SFD² median³ selling price $365,000 -8.29% E
Condo average selling price $262,365 -1.06% á
1. Residential includes SFD, condos and duplex/row houses.
2. Single Family Dwelling
3. The middle figure in a list of all sales prices

 

 ///…CP

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UPDATE: MLS.ca is Moving

Posted by Craig Pilgrim on 24 June 2008

There has been yet another change to the launch date of the new REALTOR.ca website. The new launch date is Wednesday, July 2, 2008.

This latest revision is due to the Canada Day holiday on Tuesday, July 1. The Canadian Real Estate Association has decided to wait until after the holiday to ensure ample technical support is available to us dummies if needed (REALTORS® and technology – yikes).

///…CP

Posted in Buying, General Real Estate, Selling, Shiny Objects (aka Technology) | No Comments »

Say “Cheese”…And Nothing Else.

Posted by Craig Pilgrim on 20 June 2008

Last week the REALTORS® Association of Edmonton reported to its members that some home sellers are employing nanny-cams, web cams, etcetera to record REALTOR®/ prospective buyer activity in their homes – including during open house visits and scheduled REALTOR® showings.

Why would sellers do this you ask? Giving human nature the benefit of the doubt, likely because they either have genuine security concerns about their home and/ or its contents or they are simply seeking some candid, unfiltered feedback on their home — kind of like you see on those ‘flip’ TV shows. Having given most people the benefit of the doubt, one still can’t help but wonder if a few are doing it simply with the intent of gaining some competitive edge on negotiations when an offer does come in on their home.

When I first heard about this I had to laugh (perhaps a little nervously) because I have often been in homes with Clients and said to myself “what if”. What if people were recording the showing activities and comments of my buyers and I while we were in their homes. Would we seem funny? Would we be considered rude? Would some people find us offensive if they heard what we said? Would we be embarassed if some TV show host popped out of a closet and played the recording back for us? The answer: ’yes’.

To be clear, neither I nor my Clients go out of our way to be rude or disrespectful when we are in other peoples’ homes — but when we are there we believe we can speak freely. In fact, I have always encouraged my Clients to speak freely and say whatever pops into their heads as we proceed through a home. This level of candor and trust allows me to gain insight into my Clients likes and dislikes and allows me to better serve them in all facets of their home purchase going forward. On a more comedic note, who hasn’t gone into a ‘below-average condition’ home and thought “Who lives like this?”, or gone into a ‘unique’ home and thought “What were they thinking?”. Everybody is different.

So what’s the problem? Well for starters you have to ask yourself “Could anything I say to my REALTOR® have the potential to come back and bite me in the butt during negotiations if I proceedwith an offer?”. If you find a home you absolutely love and its ‘the one’ then you will probably be excited — and because you believe you are alone in the home with your REALTOR® you will likely be doing a lot of oooing and awwwing. Your level of enthusiasm for the home will be fairly obvious to the proverbial fly on the wall. If there are certain unattached goods (i.e. chattels) you wish to have as part of the deal, if you begin to discuss your negotiating strategy with your REALTOR® in terms of an initital offer, if you tell your REALTOR® how much you would be willing to pay for the home…you get the picture. So much for your negotiating position. Talk about your unfair advantages.

If you are concerned about being recorded or if you suspect you are being recorded then try to remain tight-lipped during your visit. Make comments as you would normally but try to remain emotionally detached and act as though its ‘just a house’ — despite the fact you want it to be your new home. Leave any and all discussions about offers, strategy, negotiations, etcetera for when you have exited the home.  Remember, its up to you and your REALTOR® to make sure your position is protected at all times. Shop safely!

Back to the act of recording. Is it legal? Can they do that? I don’t know – I’m not a lawyer. I do know the REALTORS® Association of Edmonton is seeking a legal opinion on this practice as I sit here writing and I will share it once it becomes available. Is it fair? I don’t think so personally and I don’t think I would work with a home seller that employed those types of tactics.

///…CP

Posted in General Real Estate, Shiny Objects (aka Technology) | No Comments »

May Numbers - Best Time to Buy

Posted by Craig Pilgrim on 11 June 2008

Every month I review, modify/ adapt, and post the MLS® data for Edmonton and area real estate activity. The information is adapted from the REALTORS® Association of Edmonton Monthly MLS® Report and Press Release. You can view the original report in its entirety by visiting the REALTORS® Association of Edmonton website. Click HERE for a graphical representation of Edmonton’s prices over the course of the calendar year.
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Housing prices have been stable for five months, mortgage rates have dropped this year and there is an overwhelming choice of homes currently available in all price ranges. All these factors add up to an ideal market place for first time or move up home buyers.

“Our members report that the market is very active with sales just slightly below the normal level,” said Marc Perras, president of the REALTORS® Association of Edmonton. “Buyers are optimistic about their future and conditions for home buyers have not been better in recent years. I urge everyone to contact their REALTOR® and explore the many housing options available to them.”

The sales-to-listing ratio in May was 42% with 4,294 homes added to inventory on the Edmonton Multiple Listing Service® and 1,821 homes sold. May sales exceeded same month sales in 2003 and 2004 but were below May sales for 2005-2007 when the market was super-heated. At the end of May there were 11,006 residential properties available on the MLS® in the Edmonton area. That is up 400 properties from a month ago and two and a half times the inventory of a year ago. At current sales volumes there is a six month supply; twice the normal supply.

Overall, the average price for all types of residential property was up 1% at $340,499 when compared to April, and down just 4% from a year ago. Single family dwellings sold on average*** for $383,167 in May down 0.75% from the previous month. Condos were up 1.5% on average, selling for $260,837. Duplexes and rowhouses sold during May were priced 4.6% higher at $330,451 on average.

The average days on market was just 53 days; up one from April. Total residential sales were $620 million for the month and total year-to-date MLS® sales were $2.98 billion after five months.

“The year-to-date average residential price is up 1.6% from the same five month period last year. I can see prices continuing to rise,” said Perras. “I am sticking with my forecast for a 4% price increase through the year for both single family and condo residences.” Consumers are encouraged to look up home buying tips and checklists at howrealtorshelp.ca or ereb.com web sites.

***Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area. For information on a specific area, contact me directly***
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May 2008 Activity Record for
the Month *
Percent Change from
May 2007
Change From
April
Total MLS® sales this month 2,052 -36.3% á
Value of total MLS® sales - month $715 million -38.8% á
Value of total MLS® sales - year $2.98 billion -30.6% á
Residential¹ sales this month 1,821 -35.9% â
Residential average price $340,499 -3.9% á
SFD² average selling price - month $383,167 -10.1% â
SFD² median³ selling price $365,000 -8.75% â
Condo average selling price $260,837 -1.98% á
1. Residential includes SFD, condos and duplex/row houses.
2. Single Family Dwelling
3. The middle figure in a list of all sales prices

 

 ///…CP

Posted in Market Statistics | No Comments »

UPDATE: MLS.ca is Moving

Posted by Craig Pilgrim on 29 May 2008

The CREA Technology Council approved a revised launch plan for the new REALTOR.ca website and the interactive mapping feature in response to concerns raised by a number of real estate Boards and Associations.

The new launch date has been set for June 30, 2008. They have also decided that the existing sites - mls.ca and sia.ca - will continue to operate after that date. This means consumers can use either the new site with interactive mapping, or the old site(s) with existing mapping. A message will be added to the front page of the existing sites inviting consumers to try the search features and interactive mapping of the new site. There will be no automatic redirect  of visitors during this “parallel” period.

At some later date, the system will begin automatically redirecting users from the existing sites to the new REALTOR.ca site.

///…CP

Posted in Buying, General Real Estate, Selling, Shiny Objects (aka Technology) | No Comments »