REALTORS® predict stable housing market in 2010

Edmonton, January 13, 2010: Larry Westergard, President of the REALTORS® Association of Edmonton predicted a stable year ahead for the local housing market. He was addressing 1,000 REALTORS® and their guests at the annual Housing Forecast Seminar at the Shaw Conference Centre .

REALTORS® expect that sales figures, which have drooped in the last two years, will follow the trend established in the last half of 2009 and continue to climb. “Edmonton has a robust economy and consumer confidence is high,” said Westergard. “We anticipate sales of about 21,000 units in 2010 which is up 10.5% from the 19,000 residential properties sold in 2009.”
Prices for single family homes and condominiums will remain stable. Average prices for single family homes will vary through the year within a small range. “Prices in the spring are always higher than January or December,” explained Westergard. “Month-to-month variations, both up and down, can be expected, but overall we expect prices to rise about five percent.” The average price in December 2010 is expected to be $385,000 as compared to $367,000 today.

The resale condo market is feeling pressure from the new condos being built and that will keep prices in check for the next year. Condo prices are expected to remain flat with no significant increase in the year-long average price. Buyers can expect to pay $244,000 (on average) for a condominium next year – about what they would have paid in 2009.

There were just 4,037 residential properties available for sale through the MLS® System at year end and Westergard warned that if inventory figures remain low it could tilt the market in favour of sellers and cause prices to rise higher than expected. On the other hand, if mortgage rates go up it could prevent some potential buyers from entering the market and put downward pressure on prices.

“REALTORS®, homeowners and sailors all want calm seas and smooth sailing,” said Westergard. “It appears to be a stable market ahead with strong sales prospects will make the ride comfortable for everyone.”