If you're in the Edmonton market and feel that it's going to bottom out, the prices will be halved and we've seen it all before then you are not looking at the big picture and you need to stop reading the newspapers.

I've seen so many articles talking about the incredible amount of listings on the mls.ca and private listing services but when you really think about prices didn't plummet as every pundit forecasted. In fact they leveled out a bit and now are holding steady at about 10.98% lower than last year.The prices rose 40% for single family residential homes from 2006 so we are still holding a 25%++ increase in values since 2007.

Take a look at this chart from EREB


 Single Family Condo All Residential
July 2006 Average Price $303,304 $188,831 $256,489
Peak 2007 Average Price $426,028 $271,908 $354,718
Price Increase 40.50% 43.99% 38.30%
July 2008 Average Price $379,224 $253,850 $335,100
Decrease from peak -10.98% -6.64% -5.53%
Increase over 2006 25.03% 34.43% 30.65%


Looks like a healthy market that is just adjusting to keep affordability in line - we used to be the 10th highest priced city in Canada now we are around 5th. Not overpriced and not undervalued as in 2006.

EREB predicts that the market will pick up over autumn and we will see an increase in sales which will cause the inventory to decrease and over time values to increase.

So basically this sale won't last for long! If you think you'll wait until prices "bottom out" to invest then don't hold your breath - who could predict that anyway? There are so good properties on the market with motivated sellers, it's a situation that won't last for much longer.

To see some of the investment deals we've picked up in this market click here.

 
This post has been included in Alberta Real Estate News Edmonton Region, AB Real Estate News
Post is included in group: Investors

2 Comments on Where Does Edmonton Go From Here?

SEP
03
2008
1,261,987 Points 2 Featured Posts Outside Blog Hit Router

Todd

It looks like your area is doing alright. Am I right?

Sincerely

Tom Braatz
9:57pm • #1
SEP
06
2008
241,539 Points Outside Blog

Tom - it's doing very very well. We hit a cooling period over the last year mainly to maintain affordability.  It looks like 2009 we will start to see price gains again.

 
4:38am • #2


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
D30_9068r Rainmaker_large

Todd & Danielle Millar

Edmonton, AB

More about me…

Glenn Simon Inc.

Office Phone: (888) 780-5940 x 251

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog