Saturday, February 24, 2007

Housing Market Booms – Up 4.3%

Much to many people’s surprise, the Edmonton Real Estate Market increased dollar-wise by 4.3% by February 1 of this year. Yet inventory is half of what is was this time last year. In January 2006 there were approximately four-thousand listings available, this year there are about two-thousand. This is partly due to the speed of information transfer and the fact that properties are not on the market very long. To date we are not having problems meeting the needs of our buyers.

The average price of a single family dwelling in the Edmonton area this January was up 48.66% from last year and the average price was $357,325. Condos went for an average price of $233,175, and the average price of a duplex/row house was $294,148.

Across Alberta most averages were up, although there are a few spots that didn’t increase as dramatically as expected. For instance, Fort McMurray was only up 16.45%, with the average house priced at $487,000. And Lloydminster actually decreased by 12.11%, with homes coming down to $198,200 from $203,300. However, Red Deer increased a whopping 48.77% with the average single family home priced at $242,200, and Calgary was up 32.12% with the average house selling for $361,600.

Trends to Watch

Many trends are being driven by the huge buying power of the “grey crowd”. The most specific of these are:

1. The growing market for upscale condos as they seek an end to exterior maintenance.
2. The popularity of smaller, more elaborate bungalows. This is resulting from empty nesters no longer needing the large family home. It is the real estate equivalent of trading the mini-van in on a convertible.
3. The taking of equity from existing Edmonton properties to purchase retirement or recreation properties. So much money is flowing from Alberta into British Columbia that it’s become very obvious we’re the marketing targets of new B.C. projects.

Did You Know…
- 90% of the business that we do is repeat business or referrals – we’d like to take this opportunity to thank you.

If you’re thinking of buying or selling, please contact us at:
1-877-438-3336 toll free
780-438-3336 direct line

**this newsletter is not intended to solicit any properties currently for sale with another real estate brokerage.**