RAE releases October sales stats ... what does it mean?

On November 4th the Realtors Association of Edmonton released their sales statistics for October.

RAE President Darrell Cook says "Total annual sales are the highest they have been for five years and we had the best October in five years as well."  Mr. Cook reports a 15.6% increase in October's sales when compared to October 2012, and a 2.5% increase in price ($337,599 vs $332,232).  You can find the press release here.  He also notes that Sellers can expect quicker sales expectations based on a 74% sales to listing ratio meaning that a lower than normal inventory level coupled with Buyer demand should make it easier to sell your home.

Looking at the whole RAE statistical packet, it is important to realize that Mr. Cook is quoting the numbers for the Edmonton Census Metropolitan Area which includes the City of Edmonton PLUS the municipalities surrounding it (Parkland County, Strathcona, Leduc, Sturgeon and the cities and towns therein).  If you are concerned about just Edmonton you have to delve into the report and look at how the City did on its own - it is true that most of the activity is bound to the city, but it still makes a bit of a difference by taking out the surrounding area.  For example, the month to month comparison for the City of Edmonton shows a slightly lower sale to listing ratio (72%) but a higher price increase (2.5% vs 1.6%) than the overall regional numbers.  So, October 2013 has to be considered a good month for real estate, how is the year doing?

By this time last year for the City of Edmonton there were 18,438 properties listed and 10,584 sales.  The average price was $337,595 and it took 51 days for properties to sell on average.  This year, listings are at 17,586 (down 4.7%), there have been 11,310 sales (up 6.9%), the average sale price is $347,887 (up 3%) and it is taking a day less to sell (50 days).  These increases are pretty much mirrored for the region on the whole - listings down 5.1%, sales up 6.8%, prices up 3% and days on market flat; so overall a very rosy picture, and as President Cook says numbers that, on the whole, are the best they have been in five years.

While this is good news, remember that we have reached the traditional end of the real estate cycle for the year.  The snow has hit the ground and we normally see a bit of a levelling off of the market November thru January with reduced numbers of sales and a lowering of prices. Also, remember the old real estate maxim "location, location, location"  all real estate is local by nature and that the numbers above may not be the full picture of what is happening in your market area, we will need to take a closer, more in-depth look at what is happening in your neighbourhood.  Call me and we can schedule an appointment to do just that!

Regards,


Larry
lwestergard@remax.net
780-919-7653