Thursday, August 09, 2007

Edmonton A Buyer's Market - For Now

A plateau in house prices and the increase in inventory of unsold homes is shifting Edmonton's hot real estate market from the selling frenzy of 3 months ago to a buyer's market.

"The advantage has definitely moved from the seller to the buyer," Richard Goatcher, senior analyst at Canada Mortgage and Housing Corp.

Many people are worried because house prices dropped $9000 last month and $115 this month. I have even heard the price drop referred to as "a falling knife".

Then on the other hand we had $38B invested into Alberta last week. So, yeah, there is NO reason that the housing prices will increase again.

Especially when the President of Shell Canada says that the Oil Sands are just beginning are they will require a huge injection of qualified labour - people who will need a place to live that is an easy commute to the big refineries.

Realtors association president Carolyn Pratt said that buyers have a larger selection of homes to choose from and they are taking more time to decide.

"Sellers cannot just throw their property on the market and wait for a sale; they now have to develop a strong marketing plan," Pratt said.

This is how a regular real estate market works it goes up and then plateaus adjusts itself and then increases again.

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