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Old 11-19-2008, 04:45 PM
nhanson nhanson is offline
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Join Date: Mar 2008
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Default Cutting home prices key to sales success in calgary

Why Mario Toneguzzi not realize that many homes sell on kijiji, calgaryfinder.com etc that are not even tied to the MLS


Cutting home prices key to sales success
Buyers waiting for deals in cooling market
Mario Toneguzzi, Calgary Herald
Published: Tuesday, November 04, 2008

MLS sales in Calgary metro for condos and single-family homes plunged in October compared with a year ago -- a trend that has continued throughout this year.

Statistics released Monday by the Calgary Real Estate Board show condo sales were down 20.4 per cent to 399 from October 2007, with 501 sales, while single-family home sales dropped by 26.3 per cent to 820 from last year's 1,113.

In the condo market, the average sale price decreased by 12.8 per cent to $289,148 while the median sale price fell by 7.3 per cent to $268,000. The average days on the market to sell a condo increased by 25 per cent to 50 days in October from 40 days in October 2007.
Realtors Tanya Eklund and Gordon Clark are working in a market that's undergone substantial change in the past year. "There's just a lot of inventory and unless you're priced below market value people aren't even really looking at that," says Eklund.View Larger Image View Larger Image
Realtors Tanya Eklund and Gordon Clark are working in a market that's undergone substantial change in the past year. "There's just a lot of inventory and unless you're priced below market value people aren't even really looking at that," says Eklund.

For the single-family home market, the average sale price dropped by 0.7 per cent to $449,100 and the median sale price fell by 5.5 per cent to $390,000. The average days on the market to sell a single-family home rose by 20 per cent to 48 days in October from 40 days in October 2007.

With general economic woes dominating the U.S. and Canadian news, some people are concerned there is going to be a further decline in the market and for that reason they are holding off on buying residential real estate, said Tanya Eklund with Re/Max Real Estate Central.

"There's just a lot of inventory and unless you're priced below market value people aren't even really looking at that. People are going back sometimes three to four times and still not going with the property.

"So just economics right now isn't a positive in the market and people are really leery. People are concerned. There's so many unknowns in the market that people are just waiting."

The key to selling a home these days is the right pricing, she said.

"Even marketing isn't working. You can market a property until you're blue in the face, but it's going to come down to price. And you need to find a price that blows everybody else out of the water for that same sort of product. So if you have 10 infills and they're all at an average of $700,000, you need to be at $625,000," said Eklund.

New listings added to the condo market during the month decreased by 11 per cent compared with a year ago and the month-end inventory of listings sat at 2,640. The month-end inventory in October last year was 2,329.

New listings added to the single-family market during the month were down by 10.2 per cent compared with a year ago and the month-end inventory of listings was 5,522. The month-end inventory in October last year was 5,517.

The October sales-to-listing ratios are the highest realtor Gary MacLean of Re/Max Real Estate Central has seen in many years.

The ratio, which compares sales to the active inventory at the end of each month, stood at one single-family home selling for every 6.74 on the market in Calgary metro, according to MacLean. In May 2007, the local market was selling one house for every 1.86 homes on the market.

MacLean's research also shows that in October the ratio stood at one condo selling for every 6.62 on the market. In May 2007, that ratio was one condo sale for every 1.3 on the market.

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Last edited by nhanson : 03-01-2012 at 07:10 AM.
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