Edmonton Condo Market: Weekly Update

Those buying a condo in Edmonton this week were frugal with their choices.

The average sales price for condos in Edmonton between November 7 and November 13 was $208,600; down over $21,000 from a week earlier. The average price drop also partly a result of buyers opting for smaller condos as the average square footage was 955 compared to 1016 the week before. The downsizing resulted in a drop to $218/sqft this week, from $226/sqft.

Buyers in surrounding areas (St. Albert, Sherwood Park, Spruce Grove, Stony Plain, Leduc, and Beaumont) were willing to pay more to get the condo they wanted. The average selling price in these areas actually increased from $245k the week before to $259k this past week. The price/sqft for condos surrounding Edmonton this week was $240.

14-Nov-08	New Listings	Sold	Ratio	Price Changes	Active Listings	AVG Sales Price
Edmonton	118	42	35.60%	133	2217	$208,638
High-Rise	22	7	31.80%	24	341	$266,857
Low-Rise	53	25	47.20%	58	1125	$193,956
Townhome	43	10	23.30%	51	751	$204,590
Surrounding Area	26	11	42.30%	22	386	$259,364

With most of the selling activity in the lower end of the condo market lately it was positive to see two highrise condo sales downtown this week over $300k, which helped to keep the avg. prices for highrises up.

14-Nov-08	Sold	AVG Sales Price	Sold: Avg SqFt	Price / SqFt	Avg. days on Market	AVG Sales Price
Edmonton	42	$208,638	955	$218	81	$208,638
High-Rise	7	$266,857	1035	$257	94	$266,857
Low-Rise	25	$193,956	892	$217	74	$193,956
Townhome	10	$204,590	1057	$193	91	$204,590
Surrounding Area	11	$259,364	1080	$240	53	$259,364

While selling price/SqFt has dropped for every type of condominium in Edmonton compared to the avg for the past 60 days, the price/SqFt for condominums in the surrounding areas has held steady.

Sold: Past 60 Days (Sept 15 - Nov 14)	Sold	Avg. Sales Price	Avg. SqFt	Price / SqFt	Avg. Days on Market
Edmonton	625	$249,000	1017	244	63
High-Rise	84	$294,000	943	311	70
Low-Rise	310	$231,000	923	250	63
Townhome	231	$258,000	1171	220	60
Surrounding Area	101	$282,000	1195	235	66

Edmonton Condos Sold Price / ft2 7 days vs. 60 days

What are your thoughts on the stronger prices outside of Edmonton?

Tags: Edmonton Condo Market, Edmonton Condos, Weekly Condo Stats

Current Edmonton Condo Developments Move Forward

November 10, 2008 · Filed Under Edmonton Condo Developments, Edmonton Condo Market, Edmonton Economy, New Edmonton Condos · Comment

It depends on who you ask. First time home buyers have welcomed the drop in Edmonton condo prices we’ve seen over the past year and a half; condo speculators not so much. Then there are others on the sidelines who look to the Edmonton real estate market as a signal of the economic health of the capital region.

Earlier today the Edmonton Journal reported that despite the less than ideal market conditions, Edmonton condo developers are confidently moving forward with projects that are under construction, despite cancelled projects in Calgary, Canmore and Kelowna.

So what does this mean for these three groups of condo-watchers?

First, the potential condo buyer:

Its no secret that tens of thousands of young people have moved to Alberta over the past 3-5 years. Most people who moved to Alberta came here to find better jobs with higher wages. I would argue that in most industries Edmonton has higher wages than even Toronto and Vancouver. While there have been no shortage of good paying jobs the past few years, many first time home buyers who relocated to Alberta several years ago got priced out of the real estate market when prices soared in 2006.

These people have been renting and saving up for a down payment so they can buy their first home. The majority of first time home buyers in Edmonton turn towards condos because of affordability and lifestyle. For these first time home buyers the news that current condominium developments are moving forward is good news; it means condo inventory levels will remain high, giving buyers lots of choice and leverage when negotiating the purchase price, the timing of possession, and other points on the purchase contract that are specific to each transaction.

Second, condo sellers:

The news isn’t so great here. With a large inventory of condos on the market in Edmonton for buyers to choose from it will continue to be difficult for sellers just to get buyers to look at their condo let alone make offers at last years prices (which is where some sellers still have their condos priced). The best strategy is to have your condo marketed effectively and priced competitively so it can stand out from its competition.

Those who are selling to move to a single family home or relocate to another city will able to cancel many or all of the effects of higher inventory and lower condo prices, by benefiting from the same factors when they go to buy since most real estate markets across Canada are facing similar environments. Those who bought a new condo in Edmonton during the price run-up with the intent to “flip it” are in a tougher position. If it is sitting vacant they have the dilemma of whether to rent or sell.

Finally, the Observers:

With condo developments “put on hold” else-ware in Canada, and the constant barrage of doom and gloom in the US and international media, having Edmonton condo developers continue their projects shows that they are confident in the economic stability of Edmonton.

Yes, oil prices are down, but people around the world haven’t hung up the keys to their car yet. Experts continue to say that Canada is in strong position compared to other countries. And Edmonton continues to offer strong job opportunities, in the face of manufacturing lay-offs in Ontario and Quebec.

Relative to the rest of Canada, and the rest of the world - Edmonton is a pretty good place to be.

Article by: Nathan Mol, Coldwell Banker Johnston Real Estate

Tags: Edmonton Condo Developments, Edmonton Condo Market, Edmonton Economy, New Edmonton Condos

Edmonton Condo Market: Weekly Update

November 7, 2008 · Filed Under Edmonton Condo Market, Weekly Condo Stats · 1 Comment

Condo buyers in the surrounding areas of Edmonton are willing to dig a little deeper in their pockets to get the Condominium they want; at least this past week.

Average sales price of condos in surrounding bedroom communities (St. Albert, Sherwood Park, Fort Saskatchewan, Leduc, Beaumont, Spruce Grove, and Stony Plain) was $245,400 whereas Edmonton proper saw average sales price of $229,800.

Here are complete stats for the past 7 days:

7-Nov-08	New Listings	Sold	Ratio	Price Changes	Active Listings	AVG Sales Price
Edmonton	181	44	24.3%	138	2222	$229,745
High-Rise	34	3	8.8%	18	338	$203,500
Low-Rise	83	25	30.1%	59	1140	$223,127
Townhome	64	16	25.0%	60	744	$241,328
Surrounding Area	30	12	40.0%	27	426	$245,350

High-rise condo sales looked dismal, but keep in mind these stats are only for the past week. More background data and charts to come in the days and weeks ahead. Comments?

Tags: Edmonton Condo Market, Weekly Condo Stats

2 Simple Rules to Improve Condo Value

November 5, 2008 · Filed Under Selling a Condo · Comment

Attention condo boards. One of the things that affects your value is how your building is viewed in the market place. Simply put there are two things from my perspective that are very simple to do and can make a big impact.

1. Signs. Have you ever noticed that you can’t even see some condonium complexes through the forest of signs? From my persepctive a for sale sign is a valuable thing but too many signs, some leaning over, here there and every where, give the buyer the impression that maybe they should be looking in a RV park for a nice trailer. Solution: A nice master sign that has a reduced sign size where the REALTOR’s signs can hang one under another.

2. Keyboxes. Now most condo corporations couldn’t give a S–t about keyboxes. Wrong answer though. You may not be selling now, but if you do you want your complex to be as presentable as possible, and have values hold for when you do sell then having keyboxes strung all over the place conveys a message that this complex isn’t very organized. Solution: Bolt a bar in an easy to access location, but not right in the main entrance. That way the keyboxes are easily accessible but not in your face. If your complex is large maybe you need a few of them.