Thursday, January 3, 2008

Edmonton numbers for December 2007

are out...and as mentioned earlier, don't look too bad.
But, when combined with over 20 per cent decline in sales volume (and a change in the product mix), the price increases are not unexpected.
Since we don't have the 'representative property' available for Edmonton, we have to rely on the less accurate numbers such as overall median and average for different property classes.
This release from EREB didn't have a whole lot of spin and they compared the December 2007 values with the peak values. Even after the December increases, we are closer to December 2006 prices than to the peak prices.
And while the sales are falling in Edmonton, competition amongst realtors is likely to get more intense as a lot of people (including truck drivers) are joining their ranks. Perhaps, this should be shown to all prospective realtors before they think of switching careers.

On a different note, If you are a new reader, please make sure that you read this post, in which I mention the raison'd etre for this blog.
I do not offer any investment advice on this blog. What you read here is merely my opinion and you should take it with a grain of salt, just as you should take the opinion of anyone out there who claims to have a crystal ball (bank economists, real estate agents, real estate association economists, bulls and bears). What this blog offers is a different perspective- a break away from the monotonous tunes of Alberta shining, real estate always goes up etc-and offers opinions that you would generally not find in mainstream media.
If you are a prospective home buyer, you are your best ally. You have to watch for your self interest inasmuch as everyone who is a 'professional' in this trade (realtor, broker, banker, media) is working to promote their own interest, and rightly so. A sales person cannot say that a particular time(or any time?) is not a good time to buy. It's always a good time to buy from the perspective of commissioned agents who make money only when a sale is closed.
Read my earlier post on the real estate food chain for further details on my perspective on this. So treat everyone's opinion with skepticism and do your own research by establishing your goals, priorities, financing and budget before you jump in and make what is likely to be the biggest investment of your lifetime.
Finally, once again, just discuss issues related to real estate only. Write a comment only if it offers something informative or if it furthers discussion.
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