The first 10 days of March
By all apearances the Edmonton real Estate market activity is taking off in the first part of 2010.
While I am the first one to be sceptical about statistics early in the month, we have seen an interesting surge in market activity in the first 10 days of March.
Lets first start with February’s numbers: there were: 1,184 total residential sales
1,509 new listings
$ 369,573 average sale price for a single family home.
$ 231,530 average sale price for a condominium
Now to the numbers from the first 10 days of March: 572 total residential sales
1,449 new listings
$ 387,642 average sale price for a single family home.
$ 258,265 average sale price for a condominium.
As we can see from the numbers there has been a huge surge in activity over a short period. There are a few theories as to what is driving this. One is that interest rates are going to rise, thereby knocking some buyers out of the market due to the inability to qualify for a mortgage. Another theory is that the new mortgage rules have spurred the activity, some thinking that the rules may tighten again and eliminate some buyers from the market. The third theory is that this is just a continuation of the rise in activity we saw in the last months 2009.
What is my opinion? I think that we are seeing a combination of all three combined with the normal seasonal rise in activity. Whether this is just a short term blip in the grand scale of things remains to be seen.
Whether you are looking to buy or sell now maybe the time to take a closer look at taking that step.
As a seller you may be able to sell your property quickly with a minimum of inconvenience and get a good price. With competition increasing and the possibility of buyers being eliminated from the market in the near future as a result of the new mortgage rules and possible interest rate increases. Waiting may result in a minimal benefit in price and take longer for your home to sell, increasing carrying costs, minimizing any potential price increase.
From a buyers perspective the search can be shorter and more rewarding when the number of properties on the market is high, a good selection with lots to look at and compare. The same arguments that apply to those looking to sell apply to those who are looking to buy. At the 2010 housing forecast I attended earlier this year there was a consensus that interest rate will rise by the end of the year, by how much would be a guess, some say by as much as 1.5% others say as little as 0.05%. Historically with the exception of the crash in 2007 housing costs do not significantly decrease from year to year, a home that sold for $160,000 in 1997 now would sell for somewhere around the $350,000 mark. The possible combinations of higher interest rates, more stringent mortgage qualification rules and higher prices all indicate that now is the time to take a serious look at the next step.
Making your real estate needs my priority
DaveDry
Licensed Realtor in the province of Alberta
Re/Max Real Estate
www.davedry.ca
info@davedryhomes.com