Buying with Caution
It seems Home Buyers in the Edmonton & surrounding areas are continuing to watch the market with caution. The REALTORS® Association of Edmonton has released their numbers for the month of January 2016. 5,751 properties were for sale on the MLS® System for the Edmonton Census Metropolitan Area at the end of the month. 13% increase from December and almost 40% increase from this time last year. (2015) Sales were also down. Typically we see a decline in sales every winter so this should not be taken as a dramatic sign of the market’s reversal, but an early indicator for what this year may bring. 618 properties traded hands in the month of January. 13.32 % decrease from December and 7.7% decrease in sales from this time last year.
“Sales volumes are down, relative to the same time last year,” REALTORS® Association of Edmonton Chair Steve Sedgwick explains. “It is likely that home buyers are responding to current economic uncertainties. Although prices have dropped slightly, they remain stable. Growth in inventory may create more opportunities for potential buyers, and given the low interest rates, we remain optimistic about market growth as we head into the spring buying season.”
Sale Prices Decrease
Single family home prices averaged $418,928, down 1.3% and 1.2% from the previous month and from last year this time. Condo properties sold for an average of $227,052, down 8.8% over last month and 10.3% from last year. And the increasingly popular duplex/rowhouse category, which held steady for much of 2015, took the biggest average selling price decrease, coming in at $326,885, down 12.7% from the previous month and down 13.6% from the same time last year.
Longer Days on the Market
The average days on the market has crept up to 71 days. Just over a week more from last month (62). Buyers have more selection and are taking the opportunity to carefully examine the properties they’re looking at. ( The way it should always be ) Having a great REALTOR® on your team to help navigate a tougher market is a sound plan and could save you a lot of money. On the sale side of things in 2015 only 54% of MLS® listings in the Greater Edmonton Area sold. That’s crazy! 46% of homes did not sell. That is why it is important to interview multiple REALTORS® and see what they’re going to do for you other than take some average photos, stick it on the MLS® and pray for a buyer to show up.
We will continue to monitor the market every day. Report on the facts & give our clients the most up-to-date information on what is happening. Can you time the market? People do make a ton of money in Real Estate in Edmonton. But I am a strong believer in sticking to the fundamentals if you’re an “investor”. And if you’re not trying to make money, buy a nice home in a great location that is well within your budget and I guarantee you won’t lose money! And with that I will leave you with one of my favourite quotes.
“Only when the tide goes out do you discover who’s been swimming naked.”
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