To get a house today at 2006 Single family home average prices, we would have to slip down to average prices of $292,829 - is that possible? In my opinion, NO.
We actually only have 20% increase in housing prices in the past 2 years - 10% a year return - that sounds like a reasonable return and hasn't the land always given reasonable return?
- At December 2008 year end the statistics are in: Condo prices, which had dropped over 8% in October and November, were up 1.2% over the previous month (a good sign). At the beginning of the year an average SFD in Edmonton was priced at $382,022. At the end of December the price is $30,000 less at $351,870. Edmonton Condo prices over the year dropped from $253,270 to $234,286 in December; a 7.5% decline.
- 2008 SFD Average for the year was still $375,952 and the Condo Average for the year was $254,296 - (looking fairly stable wouldn't you say, if you turn off the doom and gloom sayers for a minute)
- Average days-on-market was 65 days in December 2008 (up 2).
- At the end of December there were 6,316 homes in inventory after residential listings of 1,319 and sales of 608 in December.
Today we have great interest rates, the best time of year for sales rapidly approaching and less inventory. If we take history into account, buyers should be shopping like crazy and sellers should be placing the product at a price the REALTOR suggests - it will sell - these next 2-3 months should be very busy!