Buyer's marketHome sellers forced to slash prices

Magrath

August 28, 2007

Buyer's marketHome sellers forced to slash prices
9 I+ E- j: s# R- ^! X) D3 I2 h; ]By FRANK LANDRY, CITY HALL BUREAU
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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.
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And 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.
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"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.
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' t# T& P2 q3 w/ T0 L4 ~& H2 b"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced."

As 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 $40,000.
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"There's no sense reducing any product by 5% because it just doesn't work. We're seeing reductions of 10% and more," he said.
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4 S$ T% L- }9 A8 MJon 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.
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Condos didn't fair much better, with 79% going for less than the asking price.
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"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.

He said many sellers are knowingly asking for more than their home can fetch.

7 Y( C( v7 h' m1 P% x  g"And quite frankly, the realtors are getting a bit frustrated," Hall said.

"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."

/ w: u  N; g7 V& DThere are several theories as to why there are so many homes on the market.

, Z1 R7 l% e+ ~7 `Carolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.

& G- I" [, V4 m, V+ AOther 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.

. S$ ~$ i+ l- U( x( a6 r2 f& pPratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.
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" c! n' W( P# V1 p) HKeith 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.
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) v' P; t& F( G) |. g"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."
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Hall said many sellers with homes on the market in Edmonton today won't sell.

; e5 F! L/ Y( Z. s8 |9 f"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."
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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.

flagship

Good news, thanks for sharing.

一尘

今天的太阳报上整版报道的文章。几家欢喜几家愁。

今天闲着

把握住市场才能把握住财富，同一年的房地产市场，有人赚大了，有人赔晕了。关键的一点，看得要准，下手稳，出手快。长线有长线的谱，短线有短线的打算。见好就收，得失不挂心上，才会悠悠然，欣欣然。

Magrath

原帖由 今天闲着 于 2007-8-29 00:14 发表
: d1 Z) L, C$ F+ I! t6 r见好就收，得失不挂心上，才会悠悠然，欣欣然。

9 n+ ?# x' C0 D2 P+ D :zhichi: :zhichi: :zhichi: