Edmonton Real Estate: Buyer’s Market!

Hello and Happy Fall All!

Ok so Edmonton is a Buyer’s Market – What does that mean exactly?

Definition: A buyer’s market is a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.

Where we are now is at a RECORD LEVEL of INVENTORY in Edmonton. Meaning there has never at any point in time been MORE Properties on the Market than there is at this time – as a result – Buyers have TONS to choose from.

What does this mean for Sellers?

Sellers now more than ever need to price their home very, very competitively or offer significant value.

How Buyers Shop: Buyer’s typically will look in their price range – usually within a range of $25 000 – $50 000 and will compare properties in that range. What I always tell sellers: “We need your house to look like a fruit loop in a bowl full of cheerios” Your house truly does need to stand out in your price range in order to attract any interest at all – let alone an offer!

What does this mean for Buyers?

Buyers now have tons of properties to choose from – as well as some time to make decisions and find the perfect home that will suit their needs. Instead of being rushed into making decisions which sometimes happens in a seller’s market – now the buyer can sometimes negotiate more money off the purchase price as well as have the upper hand when choosing their possession dates or other terms in the contract.

As always in Edmonton – if you have a well maintained property in a good neighbourhood and price is competitively for market conditions there will be a buyer for it – but it may take longer to attract the right buyer!! Another way of looking at the market is the ABSORPTION RATE As of Today there are 4268 SINGLE FAMILY Homes for Sale in Edmonton. In the Past 30 days there have been 688 SINGLE FAMILY Homes SOLD in Edmonton.

This would mean the Absorption Rate for Edmonton is 16% and that there are 6 months of supply on the market.

What this really means: you have a 16% chance your home will sell in any given month.

Average Days on Market for Single Family Homes: 61

**Keep in Mind: This is of PROPERTIES THAT ACTUALLY DO SELL – at this time close to 50% of properties listed on the MLS system do not sell and those statistics are not taken into account!!

For Condominiums in Edmonton

FOR SALE: 2488

SOLD Past 30 Days: 253

This would mean the Absorption Rate is 10% and almost 10 months supply on the market.

What this really means: you have a 10% chance your home will sell in any given month.

-Sellers really need to factor in these statistics when listing their home and determine how motivated they are and how competitive they are willing to be.

-We as realtors can help advise you – of course we can’t control many factors in the market however the two things that we can control is PRICE and PRESENTATION.

PRICE: We work with sellers to position their house competitively on the market and select the price point most attractive for your home

PRESENTATION: How the property is presented to the market. It is IMPERATIVE that your paint colors are neutral, your house is staged properly with tasteful decor and furniture placement, your house is CLEAN – Inside and out – and it appears maintained and beautiful to buyers! We can help put the ball in motion and organize and refer professionals to help with the preparation!

We are experienced working with both buyers and sellers in a BUYER’S MARKET and can help Navigate you through the process and help you effectively – Let me know if you or anyone else you know is thinking of buying and selling – we LOVE your Referrals!