Few scenarios keep home owners, or would-be home owners, anxiously
awake at night more these days than the fear of a US-style housing meltdown
making its way up here to Edmonton and the Great White North.
Indeed, we’ve all seen the pictures of American ghost towns full
of foreclosed homes, and anguished home owners who are either barely staying
above water, or who actually can’t afford to sell their homes – because they
owe more than the home’s going market value.
However, as dismal and tragic as that situation is, last week real
estate lawyer Mark Weisleder wrote an interesting article in the Toronto
Star, which attempted to sooth jangled nerves and let Canadians know that they’re
not headed for a US-style housing meltdown anytime soon.
Edmonton real estate buyers and sellers may think that the
only factors affecting their home’s (or future home’s) value is the condition
of the house, the neighbourhood, and even nearby amenities such as schools,
recreational facilities, malls, and so on. And while these are certainly a part
of the story, there’s another key consideration that both buyers and sellers
should be aware of, and prepared for: increasing employment rates.
True, it may seem strange to
think that the health of employment in Edmonton should matter to buyers and sellers –after all,
we’re talking about selling a house, not hiring or firing an employee – but in
the bigger picture, it makes sense. That’s because more employment typically
means the following:
Though it may be freezing cold outside, the real estate market in Edmonton is heating up again!
As reported last Friday by the Edmonton
Journal, Edmonton home buyers are enjoying a happy combination of:
competitive home prices, healthy inventory, strong national sales growth, and
historically low interest rates. All of that led to a boost in November MLS sales – the first such increase in five
According to the Realtors Association of Edmonton:
The average price of a single-detached home
sold for $362,657 -- .5% lower than October 2010, and 2.5% lower than October
Condo prices dipped to an average of
$229,604 – a 2% dip from October 2009, and a 3% drop from November 2009.