House prices have rebounded strongly in the last year, according to first quarter figures released by the Realtors Association of Edmonton.
In St. Albert, the average price of a detached home rose 15.6 per cent in the first quarter of 2010 compared to the same period of 2009. The average price of $446,000 is still about $23,000 less than the 2008 first quarter average.
Condominium selling prices are up four per cent to $269,000, remaining $20,000 less than 2008 levels.
It doesn’t feel like prices have increased that much to realtors in the field, said St. Albert realtor-broker James Mabey. But he’s noticed that the quality of listings has increased and the market is busy.
“There are a lot of people that are getting into the market and trading up. That’s definitely because of the interest rates being historically so low but I wouldn’t say with any real confidence that we’re seeing huge price increases,” Mabey said.
Inventory levels are remaining steady.
“We’re predicting that it’s going to be a very stable market, that we’re going to see some upward pressure on prices over the next couple of months while we’re busy and then potentially softening towards the middle and later part of the year with interest rates being higher,” Mabey said.
In Morinville, the average selling price of a single-family home jumped eight per cent in March to $311,000, still about $7,000 less than 2008.
“It’s actually a very brisk market especially in certain price ranges,” said Morinville realtor Glenn Fisher. “Anything around the $300,000 mark is actually selling quite quickly if it shows well.”
The average price is being pushed up because newer homes in the $400,000 range are starting to sell, he said.
Within the overall Edmonton region, the average selling price of a single-family home was $377,000 in the first quarter, up 7.6 per cent from 2009. Condo prices rose 4.8 per cent to $242,000.
“We’re back from where we were in 2008 and into 2009 where the market really corrected based on what was happening globally back to where it should be for what the Alberta and Edmonton economy is demanding for housing,” said Larry Westergard, president of the Realtors Association of Edmonton.
The market is balanced and should be able to deliver steady growth without a return to the crazy boom of 2007, Westergard said.
Some of the brisk activity reported last month is because people with mortgages pre-approved at lower rates are buying before their deadline elapses, he said. Some people are trying to buy before more restrictive borrowing rules take effect April 19 and it’s also the start of the busy season, he said.
table
Average Selling Price, First Quarter
St. Albert
Year Single Family Condo
2010 446,483 268,550
2009 386,080 258,089
2008 469,974 288,038
AVERAGE SELLING PRICE, FIRST QUARTER
see below
