Edmonton, April 4, 2007: The Edmonton Real Estate Board announced today that the average* price of a single family dwelling (SFD) in the Edmonton area increased over 6% in March. Single family homes have increased 16.5% this quarter to continue a trend that started in 2006. The average selling price for the 1,263 SFDs sold in March was just under $400,000.
“It is clear that housing prices have not yet peaked in the Edmonton area,” said Carolyn Pratt, president of the EREB. “The spring season is always very active for REALTORS® and we do not anticipate that the pace of price increases will slow until early summer.”
The SFD average price was $398,476 in March, up from $375,412 in February. A slight drop in condominium prices meant that the average price for all types of housing was up just 1.25%. Last March the average residential price was $220,124 and this March it was $325,339: an increase of 47.8% over the past 12 months. Condo prices dropped back slightly (-0.22%) from $247,266 in February to $246,719 in March. Condo prices are much more volatile than single family dwellings; dropping suddenly but rebounding the next month.
“There are lots of stories about the slowdown or reversal of certain American housing markets,” said Pratt. “But all markets are local and Edmonton is unique in that the fundamentals of low interest rates, strong demand, low inventory, steady in-migration and high consumer confidence are still driving our local economy.” The inventory of available housing (2,574 residences at the end of March) has slowly increased from a low point last May (1,857 units) but is just one month supply. There were 2,359 residential sales in March with 3,091 new listings.
The strength of the Edmonton market is also shown by the commercial MLS® sales. The value of apartment buildings sold in March 2007 quadrupled the previous March. The total value of commercial sales in the first quarter was more than double the value at the same point in each of the last three years. Total commercial sales for March were $33.2 million and $101.9 million for the first three months combined.
Prices in four surrounding communities were higher than the market average. Sherwood Park, St. Albert, Fort Saskatchewan and Spruce Grove all had average SFD prices over $400,000. Morinville had an average price of $320,600 down from $338,442 in February.
* Average prices indicate market trends only. They do not reflect actual prices, which vary from house to house and area to area.
Friday, April 20, 2007
Housing Starts Lower in First Quarter
OTTAWA, April 11, 2007 — The seasonally adjusted annual rate1 of housing starts was 210,900 units in March, up from 196,000 units in February, according to Canada Mortgage and Housing Corporation (CMHC).
“Both multiple and single starts regained some ground in March. Nevertheless, housing starts are gradually trending lower and were down more than 10 per cent in the first quarter of 2007 compared to a year ago,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “This downward trend is consistent with our view that housing starts in 2007 will be lower than in 2006.”
March’s seasonally adjusted annual rate of urban starts was 177,900 units, up 9.1 per cent from February. Urban multiple starts rose 12.0 per cent to 92,700 units in March, while single starts increased 6.2 per cent to 85,200 units.
Seasonally adjusted urban starts in March increased in all regions except the Atlantic. The Prairies led the way with a 26.2 per cent increase, followed by British Columbia at 11.3 per cent and Quebec with 10.5 per cent. In Ontario, urban starts remained relatively flat. Urban multiple starts increased in all regions except in the Atlantic and Ontario, while urban single starts were up in all regions.
Rural starts were estimated at a seasonally adjusted annual rate of 33,000 units in March.
Actual starts, in rural and urban areas combined, were down an estimated 8.8 per cent in the first quarter of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 10.3 per cent. Actual single starts in urban areas were 16.3 per cent lower than they were a year earlier, while actual urban multiple starts were down 5.3 per cent.
Canada Mortgage and Housing Corporation (CMHC) www.cmhc.ca
“Both multiple and single starts regained some ground in March. Nevertheless, housing starts are gradually trending lower and were down more than 10 per cent in the first quarter of 2007 compared to a year ago,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “This downward trend is consistent with our view that housing starts in 2007 will be lower than in 2006.”
March’s seasonally adjusted annual rate of urban starts was 177,900 units, up 9.1 per cent from February. Urban multiple starts rose 12.0 per cent to 92,700 units in March, while single starts increased 6.2 per cent to 85,200 units.
Seasonally adjusted urban starts in March increased in all regions except the Atlantic. The Prairies led the way with a 26.2 per cent increase, followed by British Columbia at 11.3 per cent and Quebec with 10.5 per cent. In Ontario, urban starts remained relatively flat. Urban multiple starts increased in all regions except in the Atlantic and Ontario, while urban single starts were up in all regions.
Rural starts were estimated at a seasonally adjusted annual rate of 33,000 units in March.
Actual starts, in rural and urban areas combined, were down an estimated 8.8 per cent in the first quarter of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 10.3 per cent. Actual single starts in urban areas were 16.3 per cent lower than they were a year earlier, while actual urban multiple starts were down 5.3 per cent.
Canada Mortgage and Housing Corporation (CMHC) www.cmhc.ca
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