February house prices defy forecast of slowdown

February house prices defy forecast of slowdown

Ron Chalmers
The Edmonton Journal
Tuesday, March 06, 2007
EDMONTON - Edmonton home prices still are soaring -- despite forecasts that they would slow in the new year.
Single-family homes sold at an average price of $375,412 in February, up 5.1 per cent from January -- which was up 4.5 per cent from December.
Carolyn Pratt, president of the Edmonton Real Estate Board, had expected prices to rise 15 per cent in the entire year. But with 10 months to go, "they're catching up very quickly to my 15 per cent," she said Monday.
"People are buying because they see the prices increase and they want to buy before there are further increases," Pratt said.
On the supply side, "we're getting listings, but as soon as they come in, they sell."
The number of new listings through the Multiple Listing Service was 2,224 in February -- up 21 per cent from February 2006.
Meanwhile, Com-Free, which helps people sell their own homes, reported listing 915 homes in the first two months of 2007 -- up 52 per cent from the first two months of 2006.
During February, MLS homes sold after an average of 27 days on the market, compared to 35 days in February 2006, and 45 days in February 2005.
Many potential sellers are ignoring today's excellent opportunity, Pratt said "A lot of people hold off because they feel that their home will show at its best in the spring and summer."
In other years, a seller might do best by waiting until the snow is gone and flowers are blooming.
"This year, it wouldn't matter," Pratt said.
"People could put their homes on the market any time and they would be well received." With the arrival of spring, however, "I think there should be more supply," she said.
Condominiums continue to gain market share. In the first two months of 2007, condos captured 27 per cent of sales compared to 21 per cent in the first two months of 2006.
"For most first-time buyers, condos are what they can afford," Pratt said.
Condo prices averaged $247,266 in February -- up from $146,933 a year earlier.
rchalmers@thejournal.canwest.com
© The Edmonton Journal 2007