The situation has left brokers like Ken Shearer, of Edmonton-based Royal LePage Noralta, trying to explain the market to upset customers. "People who bought in the last 12 to 15 months are angry. I'm telling them we have an oversupply of listings inventory, the largest in history.
Why would people be angry?! What type of advice was the Edmonton Real Estate Association giving out last year?
In only the first three months of this year, average home prices have climbed 12.4 per cent, so Pratt has abandoned her earlier forecast of a 15 per cent increase for the full year.
"We're predicting that prices will continue to rise until August, at four to five per cent per month, then at two per cent per month," she said today.
April 4, 2007
“Price increases may moderate slightly as the market returns to pre-boom levels but I do not anticipate that actual prices will decrease.”May 2, 2007
“Rising prices are forcing buyers to explore their housing options. People are being priced into the condo market,” said Pratt. “May figures demonstrate that the trend has not yet abated.” She urged both buyers and sellers to consult a REALTOR® before venturing into the market. “With the average price of a single family dwelling rising by over $400 a day, you need the latest market figures that only a REALTOR® can provide.”June 4, 2007
I wasn't going to bring those quotes up again but decided to after hearing this ad from Marc Perras of the EREB.
It's sort of like driving around on fumes with your gas guage on empty just waiting for fuel prices to go down....
Marc Perras of the REALTORS Association of Edmonton
There are homebuyers waiting on the sidelines of the market anxiously waiting for housing prices to drop.
But there is nothing to suggest that a big drop is coming?
There is still a lot of inventory on the market but sellers have adjusted already. The near record number of sales in July suggests the market has really stabilized.
So there is not much ground to be gained by waiting?
The average price of a single family home fell 0.5% in July. If you consider that amount to an average month's rent...
..Then your sitting there paying rent waiting for prices to drop...
Then you are not gaining any ground. You are just missing out on all that selection.
First, if I was living under a bridge and had the cash available to buy a house then the gas analogy might make sense. But I'm not, so it's stupid.
If your rent is cheaper than the mortgage then you gain that difference plus the depreciation each month. I'm not even including if the furnace breaks down or city taxes.