Author: Rod Thompson, President and Founder of SellerInvite.com(TM) and a licensed Broker in the Province of Alberta
TORONTO, Aug. 11 /CNW/ - With talk of a nationwide slowdown in real estate and sales representing less than 15% of Edmonton's inventory, it's likely we may see our prices here in the city fall back to pre 2007 levels. Now most will disagree with me on this, and if I ask them why there is often little to support their confidence. I believe we can go in that direction based on the numbers.
You have to first understand what average price represents, which is only those homes that have sold. So if the average price today represents less than 15% of all the homes on the market which tend to be the very best homes, and if you understand that the average price has been inflated due to the high amount of sales over $700,000, then it's only logical that once we begin to absorb the rest of the inventory that we might end up with an average price below $300,000.
You see whenever we have an imbalanced market like we have now, numbers become less accurate simply because they represent a much smaller sample than in balanced market or in a seller's market where almost everything gets sold.
Rod Thompson is the President and Founder of SellerInvite.com(TM) and a licensed Broker in the Province of Alberta and you can follow his blog by visiting www.sellerinvite.com. SellerInvite.com is Canada's first hybrid real estate company giving sellers the freedom of selling by owner with the exposure of the MLS System(R) and the guidance of a licensed REALTOR(R).
For further information: For further information: Deb Kershaw, Associate Broker, SellerInvite.com (Edmonton), 780 994 9998 office, 780 401 3446 fax