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September 05, 2006

Edmonton Housing Prices Continue Upward Climb

View The Edmonton Real Estate board has just released the market stats for August, 2006. I must say I'm surprised; I thought the increases would not be as big as they are - August set all new records. The average condo now costs over $200,000, and duplex and condo prices are up almost 15% in one month. Single family homes have taken a bit of a breather, up only 4.34% over July (in perspective, some Canadian markets haven't increased that much all year).

The good news if you're a buyer, is that the number of listings has increased from 1,856 in July to 2,138 in August, so there is definitely more to choose from. The average number of days on market is up slightly over July from 18 days to 20. Our experience tells us that homes are lasting a little longer on the market, and many more buyers (especially those looking at single family homes) are getting inspection and financing conditions accepted by sellers.

Here is the complete news release from the board:

      Edmonton housing prices continue upward climb       

Edmonton, September 5, 2006: Prices of Edmonton real estate continued their steady climb after a brief respite in July. The average residential selling price rose 5.56 percent in August after a less than one percent increase in July. The average* price for a single family dwelling climbed 4.34 percent last month and condos breached the $200,000 barrier for the first time in Edmonton.

According to the Multiple Listing Service®, the average price for  single family dwellings in August was $316,480. Average condominium prices went up 6.3% in a month to $200,644 in August. Duplexes and townhouses sold for $262,327 on average – an increase of 14.7% from last month.

“Despite price increases, we have experienced a record number of sales each month this year,”  said Madeline Sarafinchan, EREB President. “This proves that homes in Edmonton are still affordable and available for most buyers.” Along with a record number of residential sales in August, listings on the MLS® were up 19% from last month and the inventory of available properties on MLS® rose from 1,856 in July to 2,138 (up 15%) in August. “Indications are that the market is cooling slightly         and sales will not be as torrid as they have been so far this year,” she said.

      

August sales have increased each year and this year’s sales of 2,079 residential properties in August set a new record for the month. The sales numbers for categories of single family dwellings, condos and duplexes also broke existing records. Record sales combined with record prices have driven total MLS® volumes to new heights. Total MLS® volume so far this year is $4.43 billion which exceeds the 2005 year-end volume of $4.25 billion. Total residential unit sales are at 83% of last year’s sales even before the end of the third quarter.

“Edmonton is unique in North America right now,” says Sarafinchan. “Housing has been undervalued and we are catching up to prices in other major centres. We seem to have broken through a psychological barrier and buyers are beginning to accept the pricing realities that we have witnessed in other centres.”

                                                                                                                                                                       
August 2006 activityRecord *% change from 2005
Total MLS® sales this month2,448*10.10%
Value of total MLS® sales - month$675 million*55.10%
Value of total MLS® sales - year$4.43 billion*47.20%
Residential¹  sales this month2,079*7.50%
Residential average price$270,746*38.10%
SFD2 average selling price - month$316,480*41.90%
SFD2 median3 selling price$303,000*44.30%
Condo average selling price$200,644*34.20%

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Well, with all this chat about house prices and why they are where they are, lets examine the developers and builders. I have spent a great deal of time lately looking at the new housing markets. You get less quality for more money than ever before. I also believe that the developers are a huge reason prices are where they are. They hold on to land to falsely indicate a demand or shortage or land. I mean the builders play the game as well, blaming the developer, and smiling all the way to the bamk as there homes increase in cost by the hour. All this time, the increase in cost is not directlt represenative of the cost of building. Sure, labour and materials cost more, but they haven't increased 65 - 70 % percent in the last yr. You walk into a show home now, ask how much it is, and they wont tell you. "We dont have or numbers in yet on the cost" they say. Really? Tell me then how you build a house and not know what it cost you, do they really think that we consumers are that stupid? Why not just say, " We are waiting to see how much we can squeeze out of you". I know there is plenty of land. But developers and builders can make far more money and substain the rediculous prices if they drag there feet on building more. I mean 12 - 13 mths to build a none custom home. Give me a break.

If anyone is interested in really getting their money's worth and wants to buy a condo I have a beautiful 3 Bdrm, 1.5 bath, in suite laundry, finished basement and fenced backyard for sale....

[Editor's note....sorry guys, we don't even advertise our own listings here...I've taken out "Meg's" contact info.]

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