Saturday, September 4, 2010

Market Update for Edmonton

Preliminary sales are closely following the scorched earth benchmark after falling significantly from last year's levels.

Listings are back to normal after spiking this spring.

The seasonally adjusted sales to new listing ratio climbed to 51% from the decrease in new listings. This has not been enough to reverse the current trend of falling prices as inventory remains high, sales remain terrible and sentiment has turned.

1 comment:

Radley77 said...

I think it's an important point, that this is merely a leading edge indicator (sales to new listings ratio). The absorption rate, or current high levels of inventory, is a 'momentum' factor, and I would not consider the market to be balanced until sales to new listings ratio is firmly above 50% AND the absorption rate falls back under 4 months of inventory.

Anecdotally, I have heard two stories lately. That the real estate market also has high inventory levels in places like Kelowna. And that there are a four people I know that are in the situation of having two houses (which they can afford), but are not wanting to be landlords. If this is as common as I have heard from my four anecdotes, there is going to be downward pressure on prices throughout 2011.