Growing inventory reintroduces spring housing prices - Aug. 2007

Edmonton, September 5, 2007: Single family homes in the Edmonton area are selling, on average, for just slightly more than last March. There were 747 SFDs sold through the Multiple Listing Service® in August at an average price of $403,757. This is down 3.2% from the average price of $417,150 in July 2007. The average price in March was $398,476.

For the second month in a row, the inventory of available homes on the MLS® set a new record for the Edmonton market. There were 9,185 homes of all types available as of August 31, 2007. Residential sales (1,299) were below the 2,079 figure for August 2006 and the five year average of 1,657 units. The unusually high inventory has accumulated because of higher than average property listings since May. There were 4,331 residential properties listed in August which is up 63% from the previous August (2,657). The sales-to-listing ratio was just 30% down from 35% last month.

“Eventually, every house will find a buyer,” said Carolyn Pratt, President of the REALTORS® Association. “In this market, buyers have a lot of choice. Sellers must be creative in their marketing and ensure that their home is shown in the best light to capture the attention of potential buyers.” She advised sellers to ask their REALTOR® for advice on home staging or small renovations that might improve the appeal of their home. “Often a few hundred dollars to fix some minor imperfections can result in a faster sale,” she said. “People buy with their hearts as well as their wallets and sometimes the price is irrelevant when someone falls in love with a property.”

Condominium average prices fell by just 1% to $269,139 from $271,908 last month. Duplex and rowhouses dipped 2.8% to $329,764. After rising 2% in July, the average residential price dipped 2.84% in August to $344,792 and the median price was $380,000 in the greater Edmonton area.

“Every homeowner or potential home buyer is keeping their eye on the housing market right now,” said Pratt. “REALTORS® are optimistic and see any price dips as temporary and within the normal range for this market.” She urged buyers and sellers to explore all their options with their REALTOR® and heed their advice which is based on daily contact with the marketplace. “This market changes rapidly and two years or two weeks could require a different marketing approach. Even a homeowner with prior experience of buying or selling a home needs professional representation to understand the new (and changing) forces that drive this market.”

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