Below is an excerpt from the Re/Max 2009 bricks and mortar report on the state of the market.For the full report click here.
I think that it sheds light on, and summarizes, the market behavior of late.
Economic stability, rock-bottom interest rates and greater affordability have contributed to an upswing in homebuying activity in Edmonton this year. After more than a decade of serious upward momentum, home sales softened in the latter half of 2007 and came to a grinding halt in September 2008. The market braced for the impact of a global recession that never really materialized and by February/March 2009, housing began to show signs of recovery. Since that time, sales have slowly trended upward, with the number of homes sold between January and August 2009 hovering at 13,691 units, six per cent higher than levels reported during the same period in 2008. Year-to-date average price at $319,939 has battled back, now just fi ve per cent off last year’s pace. Firsttime buyers were fi rst out of the gate early in the year, taking advantage of low interest rates, softer housing values, and record inventory. At the peak, active listings were at 11,200, almost double the estimated 6,500 homes on the market today. While a good selection of product is still available for sale, multiple offers are occurring on well-priced homes in desirable communities. Purchasers are clearly reaffirming their faith in residential real estate, as more balanced housing market conditions emerge. Net-migration continues to increase and unemployment levels remain amongst the lowest in the country. While the market is still dependent on the oil and gas industry, the economy has diversifi ed in recent years.Consumer confidence levels have improved significantly,with both buyers and sellers adjusting to new market realities. Days on market are slowly declining, now at 48 compared to 63 in August of 2008. The sales-to-listing ratio has also improved at 60 per cent, up from 42 per cent one year earlier. Move-up activity is a factor in the marketplace, with the number of homes sold over the $500,000 price point on the increase. Condominiums are still a force to be reckoned with, representing an evergrowing percentage of total residential sales.
Renovationis breathing new life into some of Edmonton’s older neighbourhoods, as older, tired homes are replaced with brand-new construction. Projects such as the new arena and accompanying commercial development have also brought renewal to the downtown core. Homeownership remains an achievable goal for most living in Edmonton, with levels rising from 57.9 per cent in 1981 to 69.2 per cent in 2006. Continued in-migration, population growth, job security, low interest rates, and asteady increase in consumer confi dence should continue to fuel homebuying activity in the years ahead. If this has you interested click here for the full report.
Making your Real Estate needs my priority.
Dave Dry
www.davedry.ca
Licensed Realtor in the province of Alberta