Buyer's marketHome sellers forced to slash prices

Magrath

August 28, 2007

& e8 x/ x4 o* SBuyer's marketHome sellers forced to slash prices
0 E" I" h. W2 N' U2 ^By FRANK LANDRY, CITY HALL BUREAU
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Home 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.

% k, ?. T' v& Q$ iAnd 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.
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0 F6 O2 u4 ~% u- d+ U; ~"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.
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"If your supply mushrooms tremendously, inevitably the only product that will get consumed is the one that's best priced."
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As 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.
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& \3 b) x% c4 H. }8 D"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.
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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.
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8 G; L* |* b" B# PCondos didn't fair much better, with 79% going for less than the asking price.
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"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.
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He said many sellers are knowingly asking for more than their home can fetch.

"And quite frankly, the realtors are getting a bit frustrated," Hall said.

6 h( N7 Y4 s" \9 E"The client sets the price. If the seller says, 'I want it listed $20,000 above the market price,' they've got to do it. Ten days or two weeks later, the realtor's coming back and saying, 'I told you so,' and dropping the price."
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& Z$ W  P: `1 K& W/ A' A  O4 {There are several theories as to why there are so many homes on the market.
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Carolyn Pratt, president of the Realtors Association of Edmonton, said some investors are trying to dump property.
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: S" g3 ^0 \% |! L; Q- Q, N) qOther 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.
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# V( @6 r- g) o( S; ]0 FPratt said she's also heard some homeowners cashing out and moving back to their home provinces, like Saskatchewan, where homes are cheaper.
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9 Z; A" b1 h+ M3 fKeith 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.
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"It seems like a lot of people are going home," said Mackie. "There's no doubt about it, it's a significant number."
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Hall said many sellers with homes on the market in Edmonton today won't sell.
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3 U  z+ _$ C9 \& ]) B4 a6 \"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."
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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
! \5 m. }2 [$ h  O1 V. W: |6 M见好就收，得失不挂心上，才会悠悠然，欣欣然。

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  x* S' o# @) c :zhichi: :zhichi: :zhichi: