Buyer's marketHome sellers forced to slash prices

Magrath

August 28, 2007

! ?" u$ j; r% D4 F% O3 P$ oBuyer's marketHome sellers forced to slash prices
By FRANK LANDRY, CITY HALL BUREAU

, `6 V: b6 r4 bHome sellers are slashing their asking prices by tens of thousands of dollars as Edmonton's once sizzling housing market continues to cool, says a city real estate agent.
* P% @* \9 o% W- |8 q/ f* Q
4 s# }4 z  a5 i: k+ nAnd new figures from the Edmonton Real Estate Board show the vast majority of sellers are now getting less than they're asking for - a stark contrast to the bidding wars of a year ago that routinely forced buyers to pay more than the list price.
5 t) y: C# [) T/ N6 `/ S. {
% Q+ s+ }( F/ D. T3 I- U4 }/ @"There's tons of stuff on the market. There's twice as much inventory in residential real estate today as there was a year ago at this time," Re/Max agent Abe Hering told Sun Media yesterday.

"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced."

5 n9 M  y9 i& t1 b9 rAs a result, Hering said he routinely advises clients who've had their homes on the market for awhile to drop their asking price by 10% in order to remain competitive. On an average $417,000 single-detached home, that works out to more than $40,000.
8 `4 L$ X5 I$ p  W
% f: k) |/ F$ P: q"There's no sense reducing any product by 5% because it just doesn't work. We're seeing reductions of 10% and more," he said.

Jon Hall, with the Edmonton Real Estate Board, said 85% of single family homes that sold over the past 30 days went for less than the asking price. On average, the final figure was nearly $12,000 less than the seller was seeking.

Condos didn't fair much better, with 79% going for less than the asking price.

"What most realtors seem to be saying is that the sellers haven't adjusted their mindset to the new reality - that we have over 8,000 listings and that buyers have choice," Hall said.
8 {9 k. L2 |0 x8 x& j
He said many sellers are knowingly asking for more than their home can fetch.
( |- @7 r* w. z7 ~; A* r" V" v
"And quite frankly, the realtors are getting a bit frustrated," Hall said.

1 w, K' v% l% e/ H; g8 _% X"The client sets the price. If the seller says, 'I want it listed $20,000 above the market price,' they've got to do it. Ten days or two weeks later, the realtor's coming back and saying, 'I told you so,' and dropping the price."

, y' V1 Z' z5 T' J5 S8 ~There are several theories as to why there are so many homes on the market.
  u" \& n  |3 [( {
# L" d3 W- \, O4 lCarolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.

& {& h( I7 U# m  J% `Other people are moving into larger or smaller homes, while trying to capitalize on the market. Some sellers like to list during the summer months, she said.
7 U& V3 ]0 q# U& i$ N
Pratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.

Keith Mackie, fleet director for Budget Rent-a-Car, sees it every day. He said demand for moving trucks going to Saskatchewan from Alberta and B.C. has recently increased three-fold.

2 R/ c6 m" T4 H* ~"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."
+ C$ `- L- K, m5 H2 T# v: s: o
Hall said many sellers with homes on the market in Edmonton today won't sell.

0 [: m# M( }* X"It would be fair to say a lot of listings will melt. They'll just disappear," Hall said. "They'll just be withdrawn after a typical 60- or 90-day listing period."
) {. K* Z2 i' `1 C
The Edmonton Real Estate Board recently reported there was virtually no increase in the selling price of single family residence in July. That month, condo prices went up 2.5%, while townhomes increased 1%. The figures for August are expected to be released early next month.

flagship

Good news, thanks for sharing.

一尘

今天的太阳报上整版报道的文章。几家欢喜几家愁。

今天闲着

把握住市场才能把握住财富，同一年的房地产市场，有人赚大了，有人赔晕了。关键的一点，看得要准，下手稳，出手快。长线有长线的谱，短线有短线的打算。见好就收，得失不挂心上，才会悠悠然，欣欣然。

Magrath

原帖由 今天闲着 于 2007-8-29 00:14 发表
见好就收，得失不挂心上，才会悠悠然，欣欣然。

9 E- ^3 s# k  H* i
) S6 Z2 `' p8 S  E: G5 L6 R1 u
:zhichi: :zhichi: :zhichi: