Pace of real estate sales cools with the weather

Edmonton, November 2, 2006: As usual at this time of year, the pace of real estate sales has cooled according to the Edmonton Real Estate Board. Average prices* for single family dwellings inched up in October while condo prices dropped slightly from the previous month. As a result the average residential price dropped 0.75 percent to $276,641.

More homes were sold in October than September even though listings were down 10%. “It appears that housing prices have stabilized for the time being,” said Madeline Sarafinchan, EREB President. “The inventory remains below historic levels which means that residential pricing is still competitive. Buyers and sellers should work closely with their REALTOR® to establish an effective pricing strategy based on the most recent neighbourhood and market trends.”

The average price for a single family dwelling on the Edmonton MLS® in October was $326,292, up 1.3% from last month. Condo prices were down 1.6% from September and sold on average for $208,962. Duplexes and rowhouses sold on average for $282,551 (up 1.26%).

At the end of October there were 2,555 residential properties available as compared to 3,806 last October. The average days-on-market was 23 days; the same as last month but down from 42 a year ago. There were 1,890 residential sales in October – a slight increase from the one month sales in September (1,844).

Despite the snow, reminders of the scorching summer linger in the total number of sales. Year-to-date residential sales have already exceeded the 2005 year end total sales by 1,333 units with two months still to go this year.

“After the frantic pace of the past year the market is regaining balance,” said Sarafinchan. “Panic buying is reduced and buyers have a little more time to consider a home purchase. At the same time sellers are pleased with the relatively fast turnover of good looking, well-priced property.”
The number of homes selling below their list price is another indicator of the market rebalancing. In October, 65% of single family dwellings sold below their list price. They sold on average in 33 days. Houses which sold over their list price were on the market for just 16 or 17 days on average and represent just 19% of single family dwellings sold. Sarafinchan noted that the number of sales attracting multiple offers seems to be down although no exact figures are available.
The strength of the Alberta economy is also reflected in commercial sales. The number of commercial properties sold through the Board is up 12.5% for the year. Apartment sales are up from 44 to 94 properties (YTD through October) and land sales are up from 90 to 132. Sales of investment property and leases also show growth this year. Total value of commercial property sold to date is up 68% to a total of $247 million.The total value of commercial land sold so far this year is over $50 million as compared to $39 million in 2004.