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September 2010 Edmonton real estate market update

Real Estate Sales Representative with Royal LePage Summit

Well September wasn't much different then August.  We saw 1187 sales in September (1285 in August) and there were 2668 new listings in September (2708 in August).  So the supply continues to outpace the demand.  Our listing inventory actually did fall in September from 8822 to 8607 properties for sale.  That certainly wasn't due to sales, it was due to sellers taking their homes off the market.  I hear a lot of people saying that they will take their home off now, and then put it back on in the spring of 2011.  The only problem with this theory, is that was what everybody did in the fall/winter of 2007.  Our inventory built up in the spring of 2008 to a peak of 11,006 homes for sale which was a huge oversupply.  It is hard to predict what is going to happen at any time, but I'm pretty confident that prices will continue to soften this fall due to higher inventory levels.  I have to temper this with the increased  job prospects and increased immigration into Alberta that was recently announced.  These are both very positive developments.   So, this increased inventory should be reduced in the coming months and strengthen home prices in the long term.

How about prices?  September saw single family detached homes staying stable at $370,654 versus $370,181 in August.  Condos were up a little from $236684 in August to $238822 in September.  If you look at the price per square foot graph below it paints a different picture.  The price per square foot for single family detached in Edmonton is starting to move down, ie)you are getting more house for your money in the market.  Edmonton sales price per square foot