Aug newsletter and July stats
| Change from to | May 2011 June 2011 | July | Change from to | June 2011 July 2011 |
New Listings | 3,260 | -266 | -7.5% | 3,038 | -222 | -6.8% |
Active listings | 8,432 | +252 | +2.9% | 8,421 | -11 | -0.1% |
Sales | 1,768 | -89 | -4.7% | 1,441 | -327 | -18% |
Average Sale price *House and Condo sales | $305,631 | -$5,181 | -1.6% | $314,440 | +8,809 | +2.8% |
House | $379,409 | -$1,136 | -0.3% | $384,656 | +$5,247 | +1.3% |
Condo | $231,853 | -$9,227 | -3.8% | $244,225 | +12,372 | 5.0% |
What do these statistics tell us?
Last month the market remained stable in spite of the growing U.S. debt crisis.
In July we saw a decline in the number of new listings as well as the number of sales, but we saw increases in sale price across the board.
July is typically marks the peak sales price for the year, if recent yearly trends continue we can expect the sales prices, sales numbers and listings to decline to the end of the year and pick up again in February.
Mark Carney and the bank of Canada are feeling pressure to start raising interest rates in order to keep inflation under control, but concern over personal debt levels, these increases are more than likely to be in the form of a number of smaller increases rather than one substantial hike, starting possibly as soon as September. Economists are predicting a 0.75% to 1.0% increase within the next year.
How does this potentially affect the housing market in Edmonton? Well I have heard it referred to as the perfect storm. A low mortgage rate, a steady market, economic confidence and the threat of higher borrowing costs. Some are saying that this is the perfect scenario for a market rally, and we all remember too well the consequences of the last one. This is exactly the reason I don’t believe it will happen.
My prediction for the run to the end of the year is of a typical tailing off of the market to 2012. However this does not mean this is not a good time to jump in; on the contrary the next few months may be the best time.
Making your Real Estate needs my priority
Dave Dry
Realtor, Re/Max Real Estate
Office: (780) 457 3777
Cel: (780) 446 3727
Fax: (780) 478 7017