Here is our update on the Edmonton real estate market. (Previous week’s numbers are in brackets). For the past 7 days: New Listings: 781 (644, 627, 672) # Sales: 296 (278, 294, 248) Ratio: 38% (43%, 47%, 37%) # Price Changes: 399 (455, 349, 386) # Expired/Off Market Listings: 399 (159, 195, 198) Net loss/gain in listings this week: 86 (207, 138, 226) Active single family home listings: 3898 (3815, 3702, 3578) Active condo listings: 2754 (2761, 2682, 2638) Homes 4-week running average: $417k ($426k, $440k, $445k) Condos 4-week running average: $228k ($242k, $231k, $235k) The force is not strong in the Edmonton real estate market, unless you count the force of government regulations and mortgage rates. Sorry... Star Wars day was one of my dad's favourite days, way before anyone had heard of it he'd tell everyone he knew Happy Stars day when May 4th came around. Anyway, this was one of the busiest weeks for listings on record, in 2008 we had over 800 listings for a couple of weeks in April, but we had more new listings this week than in the past 10 years. I can say with certainty, this is not the time to test the market (we call it testing the market when homeowners don't really want to sell, they just want to see if they could get a certain amount for their house and list at an unreasonable price). If you want to sell your house now, your best strategy in most situations is to include your first price reduction in your list price and undercut your competition. If you're already on the market, you need to be quite well priced compared to your competition, if you're going to sell. We're getting to the point where it's a race to the bottom, so you're probably better off getting a bit less than you want now than a lot less than you want in a couple of months. Things are looking worse in Calgary, where sales are 25% lower than the norm for this time of year. On a separate note, I know a lot of our readers only read our weekly report, so I'm including a couple of goodies that were also in our monthly report. The Home Price MLS® Home Price Index (HPI) is now available in Edmonton and gives a better indication of what is happening to home prices than averages and medians (which can fluctuate quite a bit based on the volume of sales in different price ranges). There is a more thorough explanation in our monthly report, which also explains what a "benchmark home" is. I'm looking forward to the additional trends and comparisons we can see through the HPI. There is a national tool that makes it easier to compare Edmonton to other major cities, but they haven't added April's numbers to that tool yet, so I'll include that comparison in next week's update. This chart shows the price fluctuation of a benchmark home, compared to previous points in the past: This chart shows the price of benchmark homes over time: And here are our normal weekly charts: May the fourth be with you! Posted by Liv Real Estate on
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According to the benchmark and seeing that Alberta was in a recession it looks like a bubble specially in the detached market.

Posted by Wally on Thursday, May 3rd, 2018 at 10:14pm

No chance UCP doesn't win

Posted by Karlhungus on Thursday, May 3rd, 2018 at 11:24pm

Tom, if UPC will win expect less gov jobs and recession in Edmonton.... NDP actually supported real estate in Edmonton....

I like Sara's comment about government intervention... Why you didn't complain when BoC lowered artificially the interest rate in the last years and why you don't complain about CMHC keeping interest rates even lower by taking the risk from the banks?

Posted by bubu on Thursday, May 3rd, 2018 at 11:32pm

Well, no sense beating around the bush- prices falling, inventory climbing, sales:listing low, rates increasing and regulations growing. The question now becomes: how low do prices go, how long until we get to the bottom, and what is the best indicator of that bottom? Real estate is an unbeatable investment in rising markets, and the worst in falling. It’s the whole leverage thing- if you’ve got $50k, you can buy $50k in financial assets. That same $50k buys a $1,000,000 house with the right income, and your gains and losses are amplified 20-fold. The trick is to time it- which is impossible but fun to pretend you can :)

Posted by Trev on Friday, May 4th, 2018 at 1:11am

I'd hate to see what would happen to home prices if oil was falling rather than rising in price.

Posted by Tony on Friday, May 4th, 2018 at 7:31am

I would also hate to see how low housing and condos would go if the UCP gets in! I think Edmonton will be solidly NDP for that reason in 11 months.

Posted by Tom on Friday, May 4th, 2018 at 7:50am


Going with your train of thought, that means if the NDP get in again they should hire 500,000 more government employees. That will make things boom in Edmonton.

In fact, they should hire a million more. That will be even better for the economy.
What could possibly go wrong?

Posted by GM on Friday, May 4th, 2018 at 9:59pm

GM, I'm not a NDP fun...My comment is about the stupid level of borrowing to not lay off gov employees... If they would spend what they get in revenue ( only 60% of what they spend), 20% of the gov employees would be unemployed... don't tell me that is not affecting real estate....

Posted by bubu on Saturday, May 5th, 2018 at 12:24am

If people think the UCP will win, you really should save yourself $80,000 over the next few years and sell your house now.

Posted by Tom on Saturday, May 5th, 2018 at 7:22am

You're right that they would need to lay off 20% of the government's workforce to balance the budget, but I'm sure they would just raise taxes instead. They would have to.

Posted by Tom on Sunday, May 6th, 2018 at 6:08am

Trev, leverage isn't limited to real estate. An investor can use leverage to acquire any asset such as shares. The difference between property and shares is the price of the asset is not updated daily and the asset is not liquid. Also you are not forced to sell property in a down turn. Shares you will get a margin call which forces you to crystallize losses.

Posted by Stu on Monday, May 7th, 2018 at 6:12am

It looks like by the end of the year who qualified last year for a mortgage at 2% would need to qualify this year at 5.34% now and maybe 5.8-6% by the end of the year.... that is 35-40% less than a year ago.. ups.... Lower price market will be ok but condos at $400k and skinny houses for $6-800k will suffer...

Posted by bubu on Wednesday, May 9th, 2018 at 1:02am

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