Watch the latest video featuring a dynamic and insightful discussion between Josh Tagg of Mortgages for Less at Axiom and Jay Lewis from REMAX. In this video, they delve into the intricacies of the Edmonton real estate market, offering a detailed analysis of current trends, challenges, and opportunities for both buyers and sellers.
From exploring the significance of new listings and properties returning to the market, to debunking common misconceptions about listing prices, this conversation sheds light on the real dynamics shaping Edmonton’s property landscape. Whether you’re planning to buy, sell, or simply stay informed about the local real estate scene, this video provides valuable perspectives and data-driven insights.
Don’t miss out on their expert analysis and stay tuned for more insightful discussions in our upcoming posts. Now, let’s dive into the conversation.
Josh Tagg: Well, hello everybody and thanks for being here again for our weekly chit-chat. I’m Josh Tagg, Mortgages for Less at Axiom and Jay Lewis at REMAX.
We were talking about some of the stats in the Edmonton market. You shared with me a couple images or a couple stats here and I wanted to ask you about that. It does show on here that there’s a lot of new listings, there’s a lot of sold all in the last 30 days, but there’s that number there at the bottom called back on market. I feel like there’s some sort of story there. Could you tell us more about that?
Jay Lewis: Yeah, absolutely. So this does tell a story, but we just got to be careful how we interpret the data, right? So here, this is like for the last 30 days, this is in Edmonton, you know, 1,530 new listings have come on the market. Right now, I think we’re sitting just north of 3,800 listings. So of the 3,800, 1,600 have sold, which means that there is still some inventory, but it’s kind of a tough buyer market right now.
But that doesn’t mean that sellers aren’t suffering a bit too, and that’s where this back on market number is something that we need to talk about. So in the last 30 days, this back on market number, that’s what it’s talking about. So it says that these are houses that have gone pending, so they’ve received an offer. Buyer and seller have agreed on the price, maybe on the conditions, right? But for whatever reason, the buyer couldn’t buy the home. And so it went back on the market. It is a little bit, doesn’t tell the whole story though, because of the 409 that are back on the market, 189 of those homes are back pending. So there’s, you know, back on market, I would say if we’re gonna say about, you know, just talk about the 3,800 on the, that are actively listed, 220 of them are back on the market after being pending.
So, this property here listed for $335,000 and then it went pending not too long after being listed, right? So, it was in November 2nd, it went pending after being listed October 24th. It went pending for the typical time and it went back on the market on the 17th of November and on November 28th, it went back pending again. So basically, probably the first buyer wasn’t able to satisfy, went back on the market, got shown again, new buyer stepped in. Okay, that’s really cool.
Josh Tagg: I see the price stays the same, but that’s because for pending, we don’t actually see what the accepted price is, right? So if this pending works out, we’ll see eventually the final price of that home, but that data is not yet available. Okay, is there anything else that is interesting going on in the market that we should talk about? I think there is something about the listing prices.
Jay Lewis: Yeah, so that’s another big common misconception that I have dealing with my buyers really. It’s like, well, you know, the media would have us believe that, you know, it’s kind of like a feeding frenzy out there and you can kind of just offer with, you know, desperate sellers, high interest rates. We’re not seeing that at all. We’re seeing actually Edmonton real estate agents are actually quite responsible. I think we have a good grasp on what the values are and we’re selling really close to the list price or the asking price. So we’re trying to educate our sellers, this is what your home is worth in the current market. As you can see here, this kind of tells us some numbers.
So in the last 30 days, I pulled some data, three bed, two bathroom homes from 350 to 500 price point range. That’s a very common sort of demand of our market right now. And you can see 97% of the list price is what it ends up selling for. What does that mean? Well, you know, on an average, you know, sellers are saying we want, you know, almost $430,000 for our home. And the buyers are saying, well, we’ll agree to pay about 419 in this case, right round up a little bit. So very, very close. You’re not seeing huge, massive, you know, 30, 50, $100,000 drops like the media might get us to believe.
Josh Tagg: I guess, you know, they do talk about there being the market decreasing in some of the parts of the country. I think that is, again, those big markets that the media likes to talk about. Edmonton seems like it’s been pretty steady over the last couple of years in a way that other parts of our country haven’t been so this is actually pretty great 97% average sale price or median sale price compared to the listing or asking prices I
Jay Lewis: Guess if you something’s listed well, then it will sell well Well, you can I mean you yeah, that’s exactly it But you can also like you get I guess we can pick and choose what data we want to talk about if we wanted to look at the two extremes. It says the highest sort of difference here was there was a home listed for $545,000 and it did sell for $500,000. So we can say we found houses that have had a $50,000 reduction almost, right? But then there’s another one that was listed at $347,000, sold for $350,000. Well, we could also say, well, homes are selling for over asking price, right? So it depends how we want to paint the data. I would just say, this tells us the truth that if a house is priced correctly, buyers are educated, they’ll pay what it’s worth. So as long as as realtors, we, you know, price the home correctly, it’s going to sell. And that’s what the majority of the market is doing right now.
Josh Tagg: Okay. And that days on market, like I think selling quickly, it says average is 37 days, but some of them are as high as 150 days.
Jay Lewis: Yeah. Again, high and low, right? So that low number, that number one is probably that $347 for $350. Little underlisted, try to get some data, right? $156, very well, could have been that high, right? Way overpriced.
Josh Tagg: So taking about a month, is that pretty typical here in Edmonton or is it slower, fast?
Jay Lewis: It’s pretty average right now. So I definitely say like, you know, 30 to 40 days is pretty comfortable for the most part to sell your home.
Josh Tagg: Awesome, man. Well, you know what, Jay, I really appreciate that quick update. Hopefully, that’s useful to our friends in Edmonton who are looking at selling as well as those who are looking at buying here in the coming months. So I guess we’ll do more of this same time next week.
Jay Lewis: Yeah, I think next week we’ll talk about sort of finding common ground and what does that look like for buyers and sellers and we will try and tell a story of you know maybe a couple case points that we can find in our market.
Josh Tagg: Okay awesome looking forward to having that chat with you again next our market.