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PRIYA SHARMA
Century 21 Signature Realty
#207, 2920 Calgary Trail NW, Edmonton, Alberta
P: 780-485-2100
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Friday, September 3, 2010 - Average cost of single-family Edmonton home falls to $372,000

 

EDMONTON — Cooling demand knocked prices down for the second straight month for single-family homes while condo prices continued their steady slide for the Edmonton-region resale market in August.

Multiple Listing Service data released Thursday by the Realtors Association of Edmonton showed the average single-detached dwelling sold for $372,253 in August, down 1.96 per cent from July.

Condominium prices dropped 2.99 per cent to $232,230 -- plunging from a high of $253,788 in April.

Duplex/townhouses rose 16.7 per cent to $352,662, but the average is based on only 56 properties sold, so the average may be skewed.

July prices had fallen 3.1 per cent from June for single-family homes, 1.5 per cent for condos and less than one per cent for duplex/row houses.

Residential MLS sales in August fell to 1,195 from 1,294 in July, and new listings fell to 2,700. Compared with a year earlier, residential sales plummeted 29.5 per cent.

But single-family homes are still priced on average 1.23 per cent higher than in August 2009. They hit their sales price peak this year in June at $391,497.

"We are losing a little bit of the ground that we did make up in the first part of the year," said association president Larry Westergard.

"But I guess the good news is (single-family home prices) are still slightly higher than they were at the same point last year, so we haven't lost all of the ground that we made up."

A year earlier, consumers returned to the market after a correction in late 2008 and early 2009. "By this time last year, we saw some record number of sales in June, July, August and September."

This year started strong, but cooled, starting in April and May.

"It appears the market really was accelerated into the first part of the year based on the news that buyers were getting from the banks and the concerns about changes to the rules and the perceived increases on interest rates," Westergard said.

"Now that we've got all this inventory we don't have that same pool of buyers because they've already made that decision."

Inventory at month end continues to be high, at 8,822, little changed from 8,892 at the end of July.

The condo market has seen prices fall on average about $10,000 from a year ago.

"I think what you're seeing is the bulk of that inventory is in the condo market so that's why you see the price being more dramatically impacted," Westergard said.

The rest of 2010 likely won't bring a rebound in residential real estate activity, Westergard said.

"Normally, the last part of August, September and the first part of October, we'd see a mini-bump. I don't think we're going to see that this year. We're going to have a fairly level period right into December."

The slower pace was reflected in the average number of days on the market for August increasing by six to 57 days.

Lai Sing Louie, a Canada Mortgage and Housing Corp. regional economist, also attributed slumping sales to a home-buying rush earlier this year.

"At the beginning of the year, there was quite a sense of urgency for people to buy. There was a fear that the Bank of Canada would be ratcheting up rates quite quickly and mortgage rates would go up. They haven't gone up quite as fast as people expected, but at that time, that got a lot of people to buy.

"We were seeing some price growth too at that time, so that really encouraged people to get in. That sense of urgency appears to have dissipated."

posted in General at Fri, 03 Sep 2010 08:08:29 -0600



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