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Average price slips as fewer people moving to Alberta, realtors association says
! c4 |1 T. E3 O9 r6 PBill Mah, The Edmonton Journal
! C! }* O+ Y, D2 P! a5 wPublished: 1:31 am
5 u: ?! W6 d' P) _: Q3 \EDMONTON - The buyer still reigns in Edmonton's housing market, where the number of homes for sale has skyrocketed by 268 per cent from a year ago.
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4 S* `& I2 T6 u2 E7 TFigures released Thursday by the Realtors Association of Edmonton show there were 9,464 residential properties available in the city area -- up by a whopping 1,220 homes from February.- X y, @3 i! q$ C- A0 q
& B/ {2 P1 ]; d7 |& q( W7 e0 sThat's the third-largest inventory in Edmonton history. Only last September and October were there more homes for sale at month's end, 9,918 and 9,577 respectively.
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' J3 U+ C9 T( `! h# W. ]8 SAssociation president Marc Perras said the inventory, about six month's worth, stems largely from fewer people moving to Alberta.
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Net migration to Alberta last year was 27,048. That's down significantly from 74,523 who moved here in 2006, according to Statistics Canada data.
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"We had an industry that ramped up, expecting that those numbers would keep up and now, as a result of that drop-off, we've seen inventory numbers come up fairly significantly," Perras said.
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He predicted home prices will increase by the year's end as inventory drops and called the current situation a "stable, normal" market.
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"Our sales volumes are similar to what we saw in 2004 and 2005 and our prices are essentially flat.# i0 B4 {) B4 U, }% q
* s F+ V5 }% b% f& e P) }1 m, E! E"We saw quite a roller-coaster ride last year when prices jumped up significantly in the first six months and fell off significantly in the last six months."9 n N/ d: v% N
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A single-family home sold in March for an average price of $387,632, down 2.7 per cent from March last year.: }. A) i! P4 d# j0 ]; K
: k! X; \( z9 \* W) G. m% j" _But the average residential price -- including single-family homes, condos, duplexes, mobile homes and others -- was $343,760, 5.66 per cent higher than March 2007.
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There were 1,557 residential properties sold in March with new listings of 4,236 for a sales-to-listing ratio of 37 per cent. Homes spent 51 days on the market, down one day from last month.
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Total MLS sales in March dropped 31 per cent from a record-setting pace in March 2007.# f" |0 t( }/ d. D+ `3 B U
3 i+ h6 E* @2 J; }0 G3 i7 O( u( QMeanwhile, a house price survey released Thursday by Royal LePage Real Estate Services says Edmonton-area houses became more affordable in the first three months of 2008.
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The study looked at certain local markets examined and found the average price of a "standard two-storey home" fell 3.7 per cent to $363,707.1 M0 }# ^( T/ @4 y
! v8 \, _1 }" L! ]8 d, `2 O& U0 EThe price of detached bungalows fell 4.9 per cent to $330,000 from the same time last year. Standard condo prices also fell 7.7 per cent year-over-year to $235,000, said the LePage study.8 N0 @) l) c4 H& D: T+ v! q3 x+ ^
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Ken Shearer, a Royal LePage broker and owner, said debate over energy royalties kept house prices lower.
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"As a result of this debate, the market has receded from the wild pace it experienced last year as buyers are simply no longer interested in paying skyrocketing house prices," he said.
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According to the report, prices varied by specific market in the Edmonton region. Here are some highlights:" K/ i0 n4 S( V
3 L0 T7 S5 v% f# {9 h) ] iSherwood Park: Average prices for two-storey homes dropped by 7.1 per cent to $390,000, while detached bungalows and condos were unchanged from last year.
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4 L5 }; H+ _' j1 J% ESpruce Grove: A two-storey home rose 6.9 per cent to $405,000 year-over-year.
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Riverbend/Terwilligar: A two-storey property rose by 12.7 per cent to $410,950 over the same time last year. The average price of a detached bungalow rose by 2.6 per cent to $390,000, while condo prices dropped by 10.6 per cent to $235,000.
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Leduc: Average condo prices rose by 9.1 per cent to $240,000 year-over-year. Two-storey house prices dropped by 7.5 per cent ($310,000.) L7 e5 O# R' i+ |
" o6 v( Z E+ }4 ~4 {2 w/ u$ gSt. Albert: The average price of a two-storey home fell by 12.8 per cent to $340,000 while detached bungalows dropped by 12.3 per cent and condos by 13.3 per cent.6 { X+ {3 V7 j2 W5 L% |% ]
Castle Downs: Average detached bungalows fell by 18.6 per cent to $285,000. Average two-storey homes went down 11.4 per cent to $350,000.9 h' U; O2 i& S5 ^! e$ _
1 T* r: _3 a; A/ D* U) qClareview: Detached bungalows decreased by 8.8 per cent to $310,000, year-over-year. Condo prices fell by 16 per cent to $210,000 from the same time last year. |
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