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EDMONTON REAL ESTATE BOARD MARKET UPDATE | OCTOBER 2019 SUMMARY


Hey everyone! Welcome to another episode
of Edmonton Real Estate Today! I am your host LeRoy Warden and today I have with
me two very special guests, Sheryl Stephens of RE/MAX Real Rstate and Jodi Dahl of YEGPro Realty. Good morning! Good to see you guys! So
we’re here to discuss the market for October. The Real Estate Association
reported 2,400 new listings coming on the market and sales around 1,334. For
the inventory was around 8,000. If I’m a home buyer out there in today’s market
what would those numbers mean to me?Well number one it gives them a sense of
again the stuff is selling. So it tells them that okay there was almost
8,000 listings and there was 1,300 sales obviously if you’ve still got lots to
choose from on the market, right? The main thing for them to know is that again
with 1,334 homes that sold last month we know
that’s really relative to what sold a month before so you know what the sales
trend as you would say is obviously pretty balanced for the last couple
months yes so it’s just important that they know that there’s options out there
they definitely have some great quality homes out there but the key is just that
they get out there and they actually you know chat with their realtor, be educated
by the ones that meet their criteria. So they don’t need to see all 8,000, they really just need to see those the ones that check off all those
boxes instead of it well maybe I if I move this wall right we really just want
to get them into the style of home they want the area they want and have the
amenities. Jodi what do you think about the buyers out there? I think
buyers need to be really educated, work with their realtor. We really need to
concentrate on market evaluations. Before you write any offers sit down
with your buyers educate them, go over the stats and you really you need to
compare apples to apples. So if you’re looking at half duplexes, only look at
comparable half duplex sales in that neighborhood. We don’t need to be so
broad and crunch those numbers get them down and your buyers will see that there
are deals to be had and there’s good things to buy out there. I think
that’s a really valid point. I know I was chatting about that one of my buyers
recently and they were really surprised that the list price that this house came
on the market it was probably about $50,000 over what the other ones
were doing in the area. So I know it was a tricky situation because
they right away feel like they want to get it at market value but I know the
seller when we wrote at market value the seller was sort of offended because they
felt like, well no why are you you know they felt we were coming in $50,000 too low but again when you look at the comparables that house should
have been on $50,000 lower, right? And I think if you and that’s what I tell my
buyers all the time like, listen let’s look at these comparables. If we’re gonna
write this low we need to show why. We can’t just say, because that’s our number.
You need to have a reason. So you pull your comparables you see this house is
$50,000 too high your buyers still want to go after it.
It’s our job to make sure they don’t overpay and it’s the seller’s
realtors job to make sure that they get fair market value. A good point and that
just makes me think of you know sometimes the buyers feel like bothered
if they are only getting $5,000 off the asking price because they
really feel like everyone think you know we were chatting the other day about how
everyone hears from their co-workers and their friends and their family that they
should get a bigger deal because on the news and everywhere it’s all about being
a buyers market so they feel to some degree when they don’t get a huge
discount off that that list price. Yeah I agree I have a lot of buyers that are
like that too. I’ve also found that some of those buyers have missed out on
houses because we’ve come in too low the house really is priced well and it sells
to someone else who’s willing to pay it. Right and I think that’s just it it’s
reconfirming that education that even if you’re only getting $5,000 off, if it’s at market value you’re doing great because you’re still getting it
at $5,000 off market value. And really really, that’s our job!
Like my job is to make sure my buyers pay
market value or maybe a little bit better depending on this seller’s
circumstances and who’s willing to go lower. But that’s also my job. To make
sure my sellers get market value too. Not that the buyers steal something from the
sellers or not about the buyers right? But that’s not what we’re here for.
How is the weather, heading into Winter, affecting all of these numbers because
is there a seasonal effect now? For sure even just over the last two months our
sales have been really comparable like just let’s say roughly 50,000
different. So far the Fall hasn’t really adjusted things much. Obviously, I think the Winter will change things a little bit more but you’re right. Like if
somebody’s got a job transfer. I know I’ve had lots of people moving into the
city this year. So we’ve got job transfers, we’ve got divorce. As much as we hate to say it. But those people are gonna be motivated and so the thing is
if your listing in the Winter, we know you’re serious. And if a buyer is out
there willing to look in -20 then again this seller should know that when
they’re getting those showings. Showings maybe a little bit less often then let’s
say in the Summer or whatever but again you’re dealing with you know serious
buyers because otherwise they wouldn’t be out in -20.
I agree! Or even -10 ! If I’m a home seller trying to sell my home in
today’s market what guidance would you give me looking at what’s happening
right now in terms of inventory and sales? I would say number one stay on the
market because I’ve been hearing more and more when I’ll call to book a
showing and the seller’s agent is telling you oh no what they’re thinking of
taking it off the market and I just think you know what again I
would recommend to all my sellers stay on the market because you are gonna have
less competition. And the idea is that again when those buyers are out there
gonna be motivated so again for the sellers I think it’s really really
important that they just dress up their house really really well. Which meaning
it doesn’t take a lot. It’s decluttering, it’s cleaning and it’s doing that little
bit extra that maybe our parents used to do weekly that we now do monthly. It’s wiping down the baseboards, the windows sills all those things. Because
if a buyer comes in and sees that all those little things
are done, they really get that satisfaction feeling that this person
maintains their home. And just that feeling will push them over to the edge
to write that offer. Because you could have two comparable properties but you
know what if your’s shines just that a little bit more you they’re gonna write. And I’m
sure you’ve had that. I know I agree a %100. If you’re on the
market. So right now about 30% of houses are selling and 70%
are not. So that’s a big number. So you have a 30% chance of selling. Well you better look good! So you need to be clean,
you need to smell good and you need to be uncluttered. None of these things cost
money. Everybody should be able to do this if your listing your
house. Yeah good point and I think there are those vacant homes. When
people can take the time to stage. It was funny I was in a house the other day and
it was staged but, really minimally. It was like a plant in the corner it was
just a little spruce of color over here. They didn’t bring in a whole whack of
furniture but you know what even my buyer comments oh they did a really good
job make me feel homey and that’s the stuff that will put people over the edge
to buy that one instead of the other 7 right. Absolutely and if you have a
vacant home like make sure someone’s checking on it make sure the heat is on
like there’s nothing like going into a vacant house of the buyer and you’re so
cold you can’t even stay to look at the house. Or even having a mat at the front
door. Mat at the front door. Really small things make they make a big difference. And I would agree with that. The other stats that were released by The
Association was the average price of a single-family home was $421,000. For a
condo it was $228,000 and for a duplex it was $329,000. Now the days on market for
each of these a single-family was 60 days, condos were 76 and duplexes was 63
days. As a home buyer and home seller out
there right now, what do these numbers mean to them? You want to take that. So to
talk about days on market. So days on market is is really it means how many
days on the market your home has been until it’s sold. For buyers it means you
have a little bit more time to look. Maybe when you’re looking at something
it’s not selling immediately so you have a little you have a little bit more time
to go in for a second showings and for sellers, it means you need to have your
house ready and marketable for a little bit longer. So now we’re talking 60 days
of keeping your house ready to be shown. I would just take that
as reminding my sellers that it may take around that 60 days but again if their
house pops, right, because the thing is, if like you said,
earlier there was roughly a 30% that are selling there’s a good chance that some
of those are selling right away which again changes the averages because some
of them that have sat and they’re kind of chasing the market right. I think which
is important for us when we’re actually working with that buyers is knowing how
long has that house really sat. Because I know I was looking up acreages yesterday
and there’s some houses that have been on the market over 300 days. Well we want
to know that when we’re actually going in to write an offer because it may look
like it’s only been on for 12, right. Yeah because when you relist you’re
coming up at 0 days on market which is great for your seller because you’re
coming up fresh and shiny and new but a little deceiving for buyers. I think that’s where our job comes in right to give education. I think we could
also maybe use that with our sellers as okay 60 days on the market we don’t have
an offer, something needs to change. Whether that’s price, whether that’s the
condition of the house, whether that’s marketing on our part. Like something has
to give because we should have been sold so why aren’t we. So now we want to go
from the 70% to the 30% and be sold. Exactly, no good point. With everything
you’ve already said, what do you guys see that will be happening for the remainder of
this year? From what we’ve seen the last few months, they’ve been quite comparable
for the number of sales. So I see something similar. Of course with Winter
coming, things usually drop off a little bit more but I don’t see any big
huge changes over the next few months. The thing to keep in mind is the buyers
have more options. The ones that maybe didn’t qualify before or found that they
qualified but their monthly payment was just a little more than they could
handle. They now have the option because the government put in that program into
effect in September that now those home buyers that maybe found
things a little tight have another option where the government will
actually if you have 5% to put down the government will match your 5% if you’re
actually a first-time homebuyer and/or recently divorced. So the key is looking
into that first-time homebuyers program that the government’s put into place to
find out if you qualify. With the Winter season I think it’s just going to
continue our norm of what we’ve established the last month or so but
again there’s gonna be still those qualified buyers out there as well as
those sellers that are motivated. So I see us just going into you know a good
Winter season with consistency. That’s awesome! All right ladies, well again, we
appreciate you guys coming out to update us on what is happening in the market
and I’m sure our listeners would be very pleased to know that things are going to
stay consistent heading through. So good seeing you. Thank you. Thank you for having me. Alright Jodi. No problem!

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