Buyer's marketHome sellers forced to slash prices

Magrath

August 28, 2007

Buyer's marketHome sellers forced to slash prices
7 c" S. ~, w4 sBy FRANK LANDRY, CITY HALL BUREAU

' s4 c) B% T# ZHome 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.
1 w9 T$ g' t0 W1 ^, w. t5 Y% ~; ^
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.
( g5 n+ \2 l6 j0 d5 _' h' V
"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.
) |8 z- S9 M- B$ E
"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.

( Y6 T8 U7 \' E$ }1 B* Q2 K3 _0 ["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.

Jon 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 $12,000 less than the seller was seeking.
) W( ~. K/ T9 S/ G# i
4 k, a# w! c/ ^5 ]Condos didn't fair much better, with 79% going for less than the asking price.
1 G- _' |, [+ o+ Z( P1 N% @% x
"What most realtors seem to be saying is that the sellers haven't adjusted their mindset to the new reality - that we have over 8,000 listings and that buyers have choice," Hall said.
9 e" D$ s  T& u0 E0 B$ l5 ~/ g
He said many sellers are knowingly asking for more than their home can fetch.
+ K- ~6 ?; v- \3 a" K/ S
. i+ L" ~# o2 ^& C& C' y2 L5 x"And quite frankly, the realtors are getting a bit frustrated," Hall said.
- S0 [$ [, u% G8 l
"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."

8 k( q+ s8 E) M( y; Q+ {, wThere are several theories as to why there are so many homes on the market.
: X$ O3 {3 v; F% a1 b' m
Carolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.

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.
( ]( w1 A  U3 k6 a" c: x
) s2 _5 J" \1 j0 K4 {/ RPratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.
+ T2 X. a, y  f
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.

"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."
  K$ T- i: G0 a% j4 G0 }
Hall said many sellers with homes on the market in Edmonton today won't sell.
$ m0 P. J7 k1 f: q, C
2 Z) P* n, C7 t9 J- X2 l"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."
* h3 H# C, A4 s0 c4 d: i
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
- P! @; m/ z6 L2 O. |9 @! k0 @, K见好就收，得失不挂心上，才会悠悠然，欣欣然。

. W9 f0 N* o4 Q! {  P; K

0 @) T9 e5 O- R* H; r9 }, r :zhichi: :zhichi: :zhichi: