 鲜花( 15)  鸡蛋( 0)
|
August 28, 2007
+ F7 n. T# l4 P' {7 I% }, P; Q+ b/ n
' U. m; t+ [7 Q2 G; U: W pBuyer's marketHome sellers forced to slash prices
! |* y, S! W l: K( D l( IBy FRANK LANDRY, CITY HALL BUREAU
% o* l. x; D, D+ s4 }! D5 W8 x! n3 K) x) U0 |! i
Home sellers are slashing their asking prices by tens of thousands of dollars as Edmonton's once sizzling housing market continues to cool, says a city real estate agent.
; k; i! [: o, ~+ v6 _% K7 O
8 C% Z4 k8 C: r9 R2 mAnd new figures from the Edmonton Real Estate Board show the vast majority of sellers are now getting less than they're asking for - a stark contrast to the bidding wars of a year ago that routinely forced buyers to pay more than the list price. 9 Y- s1 a1 a3 `% r
' {; {2 n& P, O" B! O2 {% b; Y
"There's tons of stuff on the market. There's twice as much inventory in residential real estate today as there was a year ago at this time," Re/Max agent Abe Hering told Sun Media yesterday. " k5 q6 d4 `- a8 t) h3 W
2 R- s+ v$ N9 H: p: |/ K
"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced." q k$ u- u, k
- C6 G# i8 z+ h& ?" F1 V) w2 b' VAs a result, Hering said he routinely advises clients who've had their homes on the market for awhile to drop their asking price by 10% in order to remain competitive. On an average $417,000 single-detached home, that works out to more than $40,000. " X4 R8 a ^4 ]. } D! Z7 g# H
1 Y3 i) |* y9 N% k, g"There's no sense reducing any product by 5% because it just doesn't work. We're seeing reductions of 10% and more," he said. " |! ~0 R% e' c" ?7 F5 f& k
+ k ?) B8 m! u) n: w* R, P9 K6 \( N5 wJon Hall, with the Edmonton Real Estate Board, said 85% of single family homes that sold over the past 30 days went for less than the asking price. On average, the final figure was nearly $12,000 less than the seller was seeking.
0 u: _) V. _5 w/ C& p, O
: b8 O8 H+ p$ Q9 m5 o% x% xCondos didn't fair much better, with 79% going for less than the asking price. # g1 f- x) d% b( q+ I
( e) X5 t# t+ |4 T0 a"What most realtors seem to be saying is that the sellers haven't adjusted their mindset to the new reality - that we have over 8,000 listings and that buyers have choice," Hall said.
9 B) I' E- r7 X
* [7 l! G. O$ W$ q9 s+ R' O; h5 h- BHe said many sellers are knowingly asking for more than their home can fetch. & P3 G+ Q& X/ f, I& S5 s% u9 c9 n
* G1 z: K' w$ n: Z! {. w"And quite frankly, the realtors are getting a bit frustrated," Hall said. & \, A; k7 L7 W! s
, C/ O7 n7 p0 T1 f"The client sets the price. If the seller says, 'I want it listed $20,000 above the market price,' they've got to do it. Ten days or two weeks later, the realtor's coming back and saying, 'I told you so,' and dropping the price." 6 p; k2 e& j) b( A
- ?/ R7 j; M/ H3 ~There are several theories as to why there are so many homes on the market.
) y/ ^ V& ^1 S3 a0 A2 ~) s# A( w. N# l7 }( L
Carolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property. $ w5 A! P2 ^8 A$ v- X
0 f( L0 y" @1 n+ k" pOther people are moving into larger or smaller homes, while trying to capitalize on the market. Some sellers like to list during the summer months, she said. 1 m' i+ z) u5 I; g* _( n' k
* X9 e! M! w6 L' VPratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper. 9 Q' G( F5 F: X% N5 A- ?, r) N% ]
% \' c0 `% |/ R* a( I
Keith Mackie, fleet director for Budget Rent-a-Car, sees it every day. He said demand for moving trucks going to Saskatchewan from Alberta and B.C. has recently increased three-fold.
% Z5 ^( R& F2 w- R7 \3 e8 u3 U/ f
"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."
* w" Q" [+ Y* l' w- X% i1 z
6 l p+ ~2 P1 E* m4 W4 zHall said many sellers with homes on the market in Edmonton today won't sell.
- n2 c; J# B1 p0 \ H
: \( V7 F+ v6 O' b( z6 n% D"It would be fair to say a lot of listings will melt. They'll just disappear," Hall said. "They'll just be withdrawn after a typical 60- or 90-day listing period." , A- ~) C3 q% P
$ X- u) m' E: Y) r: E
The Edmonton Real Estate Board recently reported there was virtually no increase in the selling price of single family residence in July. That month, condo prices went up 2.5%, while townhomes increased 1%. The figures for August are expected to be released early next month. |
|