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Average price slips as fewer people moving to Alberta, realtors association says
t( s( f) }# z* j4 Z' _* YBill Mah, The Edmonton Journal
, \2 T1 Z( I: b, zPublished: 1:31 am
( S0 R* f5 R0 L8 Y6 d1 EEDMONTON - 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.. v( Z5 {) u; q9 i
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Figures 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.
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$ R$ U( V. e3 ]- w; I+ v2 QThat'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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/ s, ^6 l3 k8 v( r8 nAssociation 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.2 x& N. i8 ~1 W5 v
9 V# P) ~8 j( p- D6 i. y. Y7 c, z"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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: K& x8 r# ?2 R1 O2 BHe 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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9 U# t8 s J% c$ _"Our sales volumes are similar to what we saw in 2004 and 2005 and our prices are essentially flat.
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"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."0 d. Z$ J* S; I- m
* |9 z/ D8 {/ R: U6 |A single-family home sold in March for an average price of $387,632, down 2.7 per cent from March last year.
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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 2007.3 P/ B: t% `' I
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Meanwhile, 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. ?- C% ~, h, D/ B3 A3 c
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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 $363,707.% T2 F5 T; L0 T# `5 g3 p
6 i6 Y; w, O8 C$ IThe 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 $235,000, said the LePage study.
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Ken Shearer, a Royal LePage broker and owner, said debate over energy royalties kept house prices lower.* z6 s- p/ v4 a g& M
, D5 u s- O, Z. ^/ i"As a result of this debate, the market has receded from the wild pace it experienced last year as buyers are simply no longer interested in paying skyrocketing house prices," he said.
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$ V& b8 A9 i. J% o1 W( N7 DAccording to the report, prices varied by specific market in the Edmonton region. Here are some highlights:
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Sherwood 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.! s6 `5 q! P4 r! }
" _% X8 b# A F2 Y7 O) n: z& |Spruce Grove: A two-storey home rose 6.9 per cent to $405,000 year-over-year.
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" N- _; U* I' {4 tRiverbend/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 $235,000.6 g2 i1 B3 @/ E
8 h( T- f$ l( W9 e2 x* P" I! h, yLeduc: 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 ($310,000.)' ]- Z$ ^7 t2 @+ w# x5 n
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St. 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.
" M6 J5 x+ ^& s* E6 q' \6 {3 SCastle 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.
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5 Z- ~2 h2 D: Q7 }Clareview: 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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