 鲜花( 15)  鸡蛋( 0)
|
August 28, 2007 % M6 l2 ^* f. z1 G2 m& I3 L+ E
5 s' u. |0 C! w( {$ G3 I
Buyer's marketHome sellers forced to slash prices
7 w$ |6 j; M' _# A! T. ABy FRANK LANDRY, CITY HALL BUREAU
$ x: v5 H: s5 R+ a! O7 _; G+ v, x1 v* b
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. ; {5 m* _4 c. Q' o
: }+ u. b% n) K1 R' N. f+ e
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.
: J! g; ^5 l( @0 f! ^* H8 S* \$ x/ l- H! C8 t. ]- t; e
"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.
% E0 U! ^% r" C+ y6 f
8 L; u* O6 Z( y: w B"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced." , B3 c' x: s1 z9 r& }! U! j' h# X
% X( {! H q2 Q& {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 $40,000.
& e; r0 Q3 u( u. E$ Z& N( R; G# c' V4 Q, ?+ y" N5 p
"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 @/ w0 b: x$ \. O0 h; f
: J# I1 v- m+ P# q2 U( dJon 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 $12,000 less than the seller was seeking.
" `" a+ y. u: N" q; G0 Z* H3 t7 E( W; @: p- g8 f k
Condos didn't fair much better, with 79% going for less than the asking price. ) x, F7 V( r4 U* t- G2 V. F
0 c/ }/ m% o& C# ?' N4 T: a"What most realtors seem to be saying is that the sellers haven't adjusted their mindset to the new reality - that we have over 8,000 listings and that buyers have choice," Hall said. * r3 l9 A$ X v
6 q3 ?: R, f% ]7 a
He said many sellers are knowingly asking for more than their home can fetch. 4 Z) ^! _# z. c
- a9 T" @# l' a( A
"And quite frankly, the realtors are getting a bit frustrated," Hall said. 2 E; t/ l; v# x* U, \
3 P( r2 q' h! o: f1 O"The client sets the price. If the seller says, 'I want it listed $20,000 above the market price,' they've got to do it. Ten days or two weeks later, the realtor's coming back and saying, 'I told you so,' and dropping the price." + f2 d1 v* s6 i6 `1 J+ d$ V
. G6 J, b" t7 l! k' c: ~7 QThere are several theories as to why there are so many homes on the market.
. ]+ \! e7 U+ V; r' G" R0 V! ]% |% G
6 {; @3 F! j: p) LCarolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.
, b( \: Y1 U: g- I6 g+ q7 c$ v/ L) ^; ^& X
Other 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. " `' W( t T4 X6 {$ A
6 g1 L; Y1 o6 i7 U) Z6 R7 B
Pratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.
) j6 y7 X' c. Q' q. |
" D* [) \2 X A* c+ Z4 w/ \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. 1 G' x. i( N- o& x$ P2 E" I6 Q
) D4 ]( I: C- P( ~"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number." ( V. w3 D9 ?+ u6 D7 M
4 H, a9 f7 o* T$ a& m+ L4 mHall said many sellers with homes on the market in Edmonton today won't sell. 5 o# E& P& j- V/ F0 R
0 ?# o. a2 ]7 t/ B7 ]"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." - \- q. L2 d( T6 {' ^5 S
# O& M, z( d3 N, F- Y7 l9 Y3 k( P
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. |
|