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City home sales skyrocket in September
6 l+ x% t3 e' A3 \8 }( I/ wLocal near-record bucks national trend+ i, ^, G% P) J2 U$ s
' E1 [ }* H- U) s- L& vBill Mah
# t! [1 o+ I+ i5 H; V$ i0 _/ s# G RThe Edmonton Journal G0 F5 p# F3 X8 E
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Friday, October 03, 2008
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CREDIT: Larry Wong, The Journal
) Z2 S: B; _) A J) _) AREAL ESTATE'S SURPRISE 'RECOVERY': Marc Perras, president of the Realtors Association of Edmonton, talks to reporters on Thursday after announcing that third-quarter sales in the city's housing market neared record levels. 7 s% x8 N! i* c3 f
4 G+ B$ P+ o6 `" r `4 \8 bEDMONTON - While real estate in the rest of Canada sags, Edmonton's market shows signs of rebounding as demand increases and supply shrinks.! i# |" v. N) L
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The number of Edmonton-area homes sold in September nearly broke a record, leading a third-quarter upswing in sales activity from the same time last year, show figures released Thursday by the Realtors Association of Edmonton.
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There were 65.9 per cent more September residential Multiple Listing Service sales than in September 2007.7 K: k9 L: |6 Q& ]0 _
+ X. ]7 z# E2 l- S2 Y) z! o+ q) l# sJuly and August also saw 14- and 18-per-cent increases, respectively.& h0 o; _+ w2 w* t
1 d. _ j) @# L- r% L0 k"The buyers in our market have got a lot of confidence in our local economy and real estate market, and are jumping into the market in almost record numbers," said Marc Perras, association president.
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Edmonton bucks national figures released Tuesday by the Canadian Real Estate Association, which showed sales in August fell 21 per cent from a year ago.- O0 K+ i8 c8 M
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Edmonton's market began cooling in the middle of last year and appears to be warming up again, Perras said.3 Q9 W/ k" p# S0 x
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"We led correction in this country," Perras said.3 z3 @( J9 K2 ]0 D) K
6 G, u4 i0 w# J! v9 C! N' S: m) y4 l"Our correction came in 2007, and not a lot of other Canadian markets were correcting at that time. Calgary might have been the other one that corrected, but a lot of the other Canadian markets were into a growth phase.
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"Now we've really experienced most of our correction, and it seems like we're headed into recovery at this point."7 _! Y5 A6 I2 J0 q2 w& K
% ] |1 s- l: ~Perras forecasted sales volume for 2008 would reach "reasonably strong" volumes similar to 2005, before the market spiked in 2006.+ {) @) t3 C% P9 Z- q q' R1 S
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"After peaking at record sales numbers in early 2007, the market slowed through the first half of this year. But sales have certainly picked up to the normal range and surpassed same-month sales from last year.") e" o% y' z+ t; S# K6 W ?
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More encouraging news for home-sellers is that the supply has dropped to about 8,808 listings currently on the market, from a high earlier in the year around 11,000.6 p ]; c# z+ e( Z$ R
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Perras stopped short of saying the market is balanced, calling it still a buyer's market.
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Softer prices for all homes helped boost sales, but a strong regional economy was also a factor, he said.
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From September 2007 to September 2008, the average residential price dropped about 9.5 per cent, with most of the drop coming in the last half of 2007, Perras said.. w2 t6 G1 M1 K5 V+ ]! t* }
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The average sale price of a single-family dwelling was $362,097 in September 2008 -- down 1.9 per cent from last month. At the same time last year, it was $399,555.4 n" h4 H: f8 u; ]$ p# Z
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But Perras noted that prices are still well above 2006 and 2005 levels, $322,077 and $216,490, respectively. f, A/ o5 B; G) ~: O
7 B" M+ l) Z+ H* Y7 e) x9 Q0 ZCondo sales rose from the previous month by 11.7 per cent with an average price of $252,234 in September. Duplex and row houses sold on average for $315,690, up 0.1 per cent from August.
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Homes on the region's resale market were listed for an average of 61 days -- down two days from August. That compares to around 43 days in 2007 and 23 days in 2006.
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"I've been busy," said Charlie Ponde, a St. Albert-based Realty Executives realtor.
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"Prices have softened so buyers are taking advantage of the market. They were on the fence but now the message is getting through that this might come to an end because the inventory is coming down.". W. E x$ O$ G/ a4 X4 n5 z2 D
; f" f2 E' [& ^! E5 B# O J! Fbmah@thejournal.canwest.com |
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