It will be a buyer’s market next year in Edmonton.
That’s the word from Royal LePage, which today released its market forecast for nine major Canadian cities.
The realty company said house prices in Edmonton will go up only 1% – from an average of $337,500 to $341,000, a major taming of last year’s almost 35% increase.
House prices were strong during the first half of 2007, but they tumbled on the second half, said Ken Shearer, broker/owner of Royal LePage Noralta Real Estates Inc.
It resulted in a glut of houses for sale which dragged prices down compared from early this year and the previous years.
“So, we’re thinking that the sales are gonna drop in 2008 from a high of about 20,000 to 18,000.” Sales peaked around May and June with an average price of $354,000,
Both sales and prices have been dropping since with an average of $325,000 in November.
“Sellers suffered when prices started to drop.”
However, Edmonton will remain as one of the top four most expensive major Canadian cities to buy a house, just below Toronto.
Vancouver tops the list again as the most expensive market with a forecast of $587, 500 average price, an increase of 4%, followed by Calgary’s price which is predicted to go up also by 4%, from $412, 500 to $429,000.
The most affordable houses in major markets can be found in Regina and Winnipeg. But prices in those cities are expected to climb up 15.4% and 11.4%, respectively.
The average projected price in Regina for this year is $163,500 and it will go up to $188,600. In Winnipeg it will go from $179,500 to $190,000.
“Alberta home price increases will be much more moderate in 2008 as the regional market continues to adjust to the new house value reality,” the survey predicted.
Nationally, house prices are expected to rise by 3.5%, from $306,500 to $317,228, but sales will drop by 4%.
Edmonton Sun - Tuesday, December 18, 2007 - RENATO GANDIA
Tuesday, December 18, 2007
After slump in November, home prices to rise next year
Oversupply expected to tighten in February
EDMONTON - Edmonton home prices will recover in the first half of 2008 from their late-2007 slide, says the Royal LePage Market
Survey Forecast, released Monday.
The average residential sale price is expected to rise only one per cent to $341,000 in 2008 from the projected 2007 average of $337,500. But November prices averaged only $325,060 according to the Realtors Association of Edmonton so the forecast actually is 4.9 per cent above those recent levels.
Ken Shearer, broker/owner of Royal LePage Noralta Real Estate Inc., predicts that the current oversupply of listed homes will start to tighten in February as more properties are sold and others are pulled off the market.
Demand will remain strong with in-migration, low unemployment and low interest rates, Royal LePage predicts.
"The move by the Bank of Canada to reduce its overnight target-lending rate by a quarter of a per cent in 2007 will bode well for first-time buyers," it notes.
Additionally, "the Canadian dollar hovering at parity will continue to bolster the country's high consumer confidence and is anticipated to translate into continued growth in consumer spending," Royal LePage predicts.
"The negative impact of the high dollar on the country's manufacturing sector for export trade will be felt mostly in southern Ontario and Quebec."
The second quarter of 2008 with more balanced supply and demand plus a predictable seasonal surge should bring most of the year's price rise, Shearer says.
Edmonton's one-per-cent price increase from 2007 to 2008 is expected to be the lowest among major Canadian cities, with other Royal LePage forecasts ranging from 3.5 per cent in Toronto and Montreal to 15.4 per cent in Regina.
From 2006 to 2007, Edmonton led the country with a 34.5-per-cent average home price increase.
The number of home sales is expected to fall in 2008 across most of Canada. Royal LePage forecasts a national decline of four per cent, to 500,927 units. Edmonton unit sales are expected to fall 6.5 per cent -- which is more than any other major city -- to 18,950 units.
Edmonton Journal - Tuesday, December 18, 2007 - Ron Chalmers
EDMONTON - Edmonton home prices will recover in the first half of 2008 from their late-2007 slide, says the Royal LePage Market
Survey Forecast, released Monday.
The average residential sale price is expected to rise only one per cent to $341,000 in 2008 from the projected 2007 average of $337,500. But November prices averaged only $325,060 according to the Realtors Association of Edmonton so the forecast actually is 4.9 per cent above those recent levels.
Ken Shearer, broker/owner of Royal LePage Noralta Real Estate Inc., predicts that the current oversupply of listed homes will start to tighten in February as more properties are sold and others are pulled off the market.
Demand will remain strong with in-migration, low unemployment and low interest rates, Royal LePage predicts.
"The move by the Bank of Canada to reduce its overnight target-lending rate by a quarter of a per cent in 2007 will bode well for first-time buyers," it notes.
Additionally, "the Canadian dollar hovering at parity will continue to bolster the country's high consumer confidence and is anticipated to translate into continued growth in consumer spending," Royal LePage predicts.
"The negative impact of the high dollar on the country's manufacturing sector for export trade will be felt mostly in southern Ontario and Quebec."
The second quarter of 2008 with more balanced supply and demand plus a predictable seasonal surge should bring most of the year's price rise, Shearer says.
Edmonton's one-per-cent price increase from 2007 to 2008 is expected to be the lowest among major Canadian cities, with other Royal LePage forecasts ranging from 3.5 per cent in Toronto and Montreal to 15.4 per cent in Regina.
From 2006 to 2007, Edmonton led the country with a 34.5-per-cent average home price increase.
The number of home sales is expected to fall in 2008 across most of Canada. Royal LePage forecasts a national decline of four per cent, to 500,927 units. Edmonton unit sales are expected to fall 6.5 per cent -- which is more than any other major city -- to 18,950 units.
Edmonton Journal - Tuesday, December 18, 2007 - Ron Chalmers
Buying a home can be your first step to financial security
Owning beats renting and sooner is better than later
EDMONTON - Back in 1992, I bought my first place for $55,000. It was a two-bedroom townhouse-style condo.
At the time, the average house price in Edmonton was about $100,000 and the government had just introduced the ability to borrow money from your RRSP to buy a home. I borrowed $5,000 from my RRSP and added another $5,000 of cash for the down payment. I remember both the $10,000 down payment and also the $55,000 price tag seemed like a lot of money.
Today, the average house price in Edmonton is about $375,000. In 2004, the average house price was about $175,000.
Many first-time homebuyers in Alberta are finding that the real estate boom has made it more difficult to buy their first home. In other parts of the country like Toronto and Vancouver, this scenario for first time buyers has been a reality for many years.
Regardless of the boom and the city you live in, buying your first home is always tough. Here are some tips for those looking to get into the housing market.
It's better to get into the market: I believe owning over renting is better for your personal finances.
Some people I've talked to delay buying in order to wait to buy the right house. Let's face it, your first place is your starting point.
I say it's better to get into the market because everything moves together. You'll always want to upgrade no matter what kind of house you start with. For me, a townhouse condo in the west end was not the ideal place but it got me into the market. It got me started into a world of ownership.
I have owned a lot of places and upgraded many times. I'm thankful I got in even though it was not the ideal place.
Buy what you can afford: I know you might think this is tough in this market but don't push yourself to the limit.
Too many people are stretching amortization periods and putting down very small down payments.
As far as I am concerned, you are better off buying less house so that you can minimize the debt and minimize the amortization.
Back in 1992, I could have bought a $100,000 house with the same $10,000 down payment, but it would have meant more interest costs. Instead, I chose a smaller mortgage to build more equity, which consequently allowed me to upgrade a year later.
When you go see mortgage professionals, they will always tell you the biggest mortgage you can qualify for based on your income. Don't necessarily buy the biggest house you can afford according to the mortgage brokers.
Use the Home Buyers Plan: The government allows first-time home buyers to borrow up to $20,000 out of their RRSP to buy their home.
Although you don't have to pay interest or tax on that money, you do have to pay that back over a 15-year period. Some critics will argue that you lose the opportunity to make money inside the RRSP, but you will have the opportunity to make money with your property. For me, I had saved some money to buy the home, but borrowing out of the RRSP allowed me to get my down payment up to almost 20 per cent. As we all know, real estate has been a pretty good investment since then.
Don't speculate: Real estate prices go up and down.
Fortunately, they tend to go up more than they go down and that's why, long term, it is better to own than rent. There's always someone quick to predict what house prices will be in the next months or years, but the fact is nobody knows. Anyone predicting is guessing. Buy because long-term owning is better than renting. Buy within your means so that you can weather through some of the tougher times.
Edmonton Journal - Saturday, December 15, 2007 - Jim Yih
EDMONTON - Back in 1992, I bought my first place for $55,000. It was a two-bedroom townhouse-style condo.
At the time, the average house price in Edmonton was about $100,000 and the government had just introduced the ability to borrow money from your RRSP to buy a home. I borrowed $5,000 from my RRSP and added another $5,000 of cash for the down payment. I remember both the $10,000 down payment and also the $55,000 price tag seemed like a lot of money.
Today, the average house price in Edmonton is about $375,000. In 2004, the average house price was about $175,000.
Many first-time homebuyers in Alberta are finding that the real estate boom has made it more difficult to buy their first home. In other parts of the country like Toronto and Vancouver, this scenario for first time buyers has been a reality for many years.
Regardless of the boom and the city you live in, buying your first home is always tough. Here are some tips for those looking to get into the housing market.
It's better to get into the market: I believe owning over renting is better for your personal finances.
Some people I've talked to delay buying in order to wait to buy the right house. Let's face it, your first place is your starting point.
I say it's better to get into the market because everything moves together. You'll always want to upgrade no matter what kind of house you start with. For me, a townhouse condo in the west end was not the ideal place but it got me into the market. It got me started into a world of ownership.
I have owned a lot of places and upgraded many times. I'm thankful I got in even though it was not the ideal place.
Buy what you can afford: I know you might think this is tough in this market but don't push yourself to the limit.
Too many people are stretching amortization periods and putting down very small down payments.
As far as I am concerned, you are better off buying less house so that you can minimize the debt and minimize the amortization.
Back in 1992, I could have bought a $100,000 house with the same $10,000 down payment, but it would have meant more interest costs. Instead, I chose a smaller mortgage to build more equity, which consequently allowed me to upgrade a year later.
When you go see mortgage professionals, they will always tell you the biggest mortgage you can qualify for based on your income. Don't necessarily buy the biggest house you can afford according to the mortgage brokers.
Use the Home Buyers Plan: The government allows first-time home buyers to borrow up to $20,000 out of their RRSP to buy their home.
Although you don't have to pay interest or tax on that money, you do have to pay that back over a 15-year period. Some critics will argue that you lose the opportunity to make money inside the RRSP, but you will have the opportunity to make money with your property. For me, I had saved some money to buy the home, but borrowing out of the RRSP allowed me to get my down payment up to almost 20 per cent. As we all know, real estate has been a pretty good investment since then.
Don't speculate: Real estate prices go up and down.
Fortunately, they tend to go up more than they go down and that's why, long term, it is better to own than rent. There's always someone quick to predict what house prices will be in the next months or years, but the fact is nobody knows. Anyone predicting is guessing. Buy because long-term owning is better than renting. Buy within your means so that you can weather through some of the tougher times.
Edmonton Journal - Saturday, December 15, 2007 - Jim Yih
Tuesday, December 11, 2007
Wednesday, December 5, 2007
Housing prices tumble even as inventory decreases
Edmonton, December 4, 2007: The REALTORS® Association of Edmonton reports that housing prices in Edmonton suddenly dropped in November. The largest monthly drop in single family prices so far this year was 3.2% in August. The drop in November was 5.3%. The residential inventory is still high as compared to historical levels but has dropped throughout November. There were 8,667 residential properties available on the Multiple Listing Service® at the end of the month
“Home sellers have come to realize that the current market is very price sensitive. If a property is not priced right for this market it may languish in the listings,” said Carolyn Pratt, President of the REALTORS® Association. “Buyers currently have lots of options available and are being selective about homes they consider.” She stressed that REALTORS® using the MLS® can provide the most comprehensive and accurate market prices and current neighbourhood pricing trends.
Single family dwellings listed on the Multiple Listing Service® sold on average for $376,267 in the Edmonton area in November. Condominiums on MLS® sold on average for $252,277 (down 4.0%) and the more volatile duplex/rowhouse prices were down 15.4% and sold for $311,193 on average. The average residential sales price (which includes all types of residential property) was down 6.5% from last month at $325,060.
“As the current listings become sold or are withdrawn the current inventory will drop. As we move into the spring with a more normal inventory, we expect that prices will again begin to rise slowly," said Pratt.
Typically, homes sold more slowly with the average days-on-market up a week to 51 days. The sales-to-listing ratio was higher than October at 45% and total residential volume for November was $397 million; down 10.6% from the same month last year. The total MLS® sales figure for the year to date was $7.9 billion and will be a record setting $8 billion by the end of the year.
Realtors Association of Edmonton
“Home sellers have come to realize that the current market is very price sensitive. If a property is not priced right for this market it may languish in the listings,” said Carolyn Pratt, President of the REALTORS® Association. “Buyers currently have lots of options available and are being selective about homes they consider.” She stressed that REALTORS® using the MLS® can provide the most comprehensive and accurate market prices and current neighbourhood pricing trends.
Single family dwellings listed on the Multiple Listing Service® sold on average for $376,267 in the Edmonton area in November. Condominiums on MLS® sold on average for $252,277 (down 4.0%) and the more volatile duplex/rowhouse prices were down 15.4% and sold for $311,193 on average. The average residential sales price (which includes all types of residential property) was down 6.5% from last month at $325,060.
“As the current listings become sold or are withdrawn the current inventory will drop. As we move into the spring with a more normal inventory, we expect that prices will again begin to rise slowly," said Pratt.
Typically, homes sold more slowly with the average days-on-market up a week to 51 days. The sales-to-listing ratio was higher than October at 45% and total residential volume for November was $397 million; down 10.6% from the same month last year. The total MLS® sales figure for the year to date was $7.9 billion and will be a record setting $8 billion by the end of the year.
Realtors Association of Edmonton
Tuesday, December 4, 2007
Home prices down in November
6.5-per-cent drop from October, but average price still higher than a year ago
Tuesday, December 04, 2007
EDMONTON - Edmonton home prices dropped an average of 6.5 per cent in November from October.
Single-family houses fell 5.3 per cent to $376,267 while condos were down four per cent to $252,277.
Edmonton house prices now are down $50,000 from their May peak of $426,028.
The volatile mixed category of duplexes and rowhouses plummeted 15.4 per cent to $311,193.
The average for all housing forms, $325,060, is still up 15.1 per cent from November 2006.
"The current market is very price-sensitive," Carolyn Pratt, president of the Realtors Association of Edmonton, said today. "If property is not priced right for this market, it may languish in the listings."
During November, residential inventory dropped to 8,667 properties from 9,577 a month earlier.
Pratt predicted that inventory will continue to fall and that prices will rise slowly in the spring.
Edmonton Journal - Tuesday, November 4, 2007
Tuesday, December 04, 2007
EDMONTON - Edmonton home prices dropped an average of 6.5 per cent in November from October.
Single-family houses fell 5.3 per cent to $376,267 while condos were down four per cent to $252,277.
Edmonton house prices now are down $50,000 from their May peak of $426,028.
The volatile mixed category of duplexes and rowhouses plummeted 15.4 per cent to $311,193.
The average for all housing forms, $325,060, is still up 15.1 per cent from November 2006.
"The current market is very price-sensitive," Carolyn Pratt, president of the Realtors Association of Edmonton, said today. "If property is not priced right for this market, it may languish in the listings."
During November, residential inventory dropped to 8,667 properties from 9,577 a month earlier.
Pratt predicted that inventory will continue to fall and that prices will rise slowly in the spring.
Edmonton Journal - Tuesday, November 4, 2007
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