So where is the market going? Is this a typical year ?
Firstly the economic crisis that has gripped the globe has undoubtedly had an effect on Edmonton, a city that is largely dependent on the oil sector. Layoffs due to expansion projects put on hold by the large oil companies primarily in the oil sands, and related industries where the first indicators of local trouble. As in any business there needs to be a margin of profit in order to make expansion viable. The numbers I have heard bandied around are between $40 to $60 dollars a barrel depending on a variety of factors.
Even before the economic crisis hit the Edmonton market was entering a period of correction, which was expected, but may have been exacerbated by the global financial woes. After prices climbed through 2006 and 2007 the market started to correct in fall of 2007.
Now for current events. Spring brings a surge in activity with buyers coming out of hibernation. The basic laws of supply and demand apply here. If you have children and want or need to move…. summer is the logical choice to get them in to their new home, and settled before the new school and school year. Buyers that have been cooped up all winter waiting for nice days to look at properties come out every chance they get. And really who wants to move in the winter.
The federal government has added incentives in the form of a number tax credits and increasing the amount a first time home buyer can withdraw from there RRSP's in order to purchase their first home.
On the oil front the price has now been on a steady but constant climb up the price charts from a high of $126.33 US a barrel in July 2008 to a low of $32.94 US a barrel in December 2008 to a march 29 closing price of $52.34. The other big news is the merger of petro Canada and suncor.
On top of this the S&P/TSX composite index finished up 314.71 points for the week of March 27 after an up and down week starting with a rally on Monday March 23..The rise in the TSX is an indicator of financial confidence, even in the face of news, over weekend, that the U.S. government has rejected restructuring plan for both G.M. and Chrysler continues to gain as of this writing on March 31 . For more financial news follow this link.
O.K. so this is all very nice but what does it mean to Edmonton Real Estate. As mentioned before we are a city and province whose economic fortunes rises and falls with the price of oil. If the price of oil continues to rise sidelined projects may be restarted, jobs will comeback and so will stability to our economy.
The bottom line is that the early early numbers for the month of March show an increase in market activity right across the board from number of listings and solds to average price of property sold.
| | Change From February | |
| Listings | 2779 | 112 | 4.0% | |
| Sales | 1300 | 225 | 17.3% | |
| Sale price | $291,372 | $4,289 | 1.5% | |
| House | $350,957 | $3,648 | 1.0% | |
| Condo | $231,786 | $4,929 | 2.1% | |
The lowest interest rates in memory also add to the incentive to buy, possibly cutting hundreds off your mortgage payments or raising the amount for which you qualify. This combined with the reasons and economic indicators I have cited above lead me to believe, in my humble opinion, we have, or will very shortly reach the bottom of the market
Now is the time to buy!
Making your Real Estate needs my priority.
Dave Dry
Licensed Realtor in the province of Alberta
www.davedry.ca
Info@davedryhomes.com
780 446 3727