Posted on: 06-09-07 10:31:01
Hi OneIsACrowd,
The original thread of "average joe" scenario was long lost and diluted by stats & stats & stats to prove that market was crashing. So rather than starting another thread for this stats report, I thought it to be appropriate to add to existing one.
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
House prices plunge $20,000
Red-hot market chills in August
Mario Toneguzzi, Calgary Herald; with files from the Edmonton Journal.
Published: Thursday, September 06, 2007
Calgary's resale housing market, which has set a scorching pace for the past two years, has dramatically cooled, with the average price for single-family homes plunging by about $20,000 in August, according to a local realtor.
The average sale price dropped primarily because of a decline in the sales of luxury homes, those over a million dollars.
According to preliminary figures from Calgary realtor Bob Truman, of First Place Realty, the average sale price of a single-family home in August was $485,566 -- down from the record high of $505,920 set in July.
The median price dropped in August to $430,000 from $435,000 in July. It was $439,000 in June.
Truman said Wednesday that the average sale price in August was affected by the number of sales in the million-dollar-plus category.
In August, he said, 38 homes sold for more than $1 million at an average sale price of $1.5 million.
This compares with 61 sales in the upper-end market in July with an average sale price of $1.7 million.
Official Multiple Listing Service data for the month of August is expected to be released today by the Calgary Real Estate Board.
"If you get rid of the million-dollar sales . . . and compare them month to month, well August was down $2,000 compared to July," Truman said of the average sale prices for single-family homes.
There were fewer million-dollar sales in August and that skewed the average price, he said.
"But if you look at the median price, it was only down by $5,000 and that means the same thing: there were fewer million-dollar sales."
For August, there were 1,318 sales in the single-family home category while there were 598 sales of condominiums. In August, the average sale price of condos was $320,790 -- a slight increase from the $318,582 in July.
"My guess is that when people see the average price go down so much, they're going to hold off probably on buying until they see it stop, right, and then the floodgates will open again when they see it turn around," said Truman.
According to Truman's website, the average sale price of a single-family home in the past seven days, as of Tuesday, was $480,766 and the average sale price on Sept. 30, 2006, was $426,690.
In Edmonton, where real estate had also been climbing fast, the same sag in the market is being seen.
Edmonton-area home prices fell almost $10,000 in August -- the deepest drop in the city's history.
The $344,792 average, for all forms of housing, was down 2.8 per cent from July.
Rahul,
So are you trying to copy and paste some real estate info (for what purpose), or inform (what though - your comments are missing in most of the posts) or something else?
Are you buying (or waiting for comments that could help you buy), or sell (since prices may go down), or enter into options?
chandresh
Quote:
Originally posted by rahul_singh23
House prices plunge $20,000
Red-hot market chills in August
Mario Toneguzzi, Calgary Herald; with files from the Edmonton Journal.
Published: Thursday, September 06, 2007
Calgary's resale housing market, which has set a scorching pace for the past two years, has dramatically cooled, with the average price for single-family homes plunging by about $20,000 in August, according to a local realtor.
The average sale price dropped primarily because of a decline in the sales of luxury homes, those over a million dollars.
According to preliminary figures from Calgary realtor Bob Truman, of First Place Realty, the average sale price of a single-family home in August was $485,566 -- down from the record high of $505,920 set in July.
The median price dropped in August to $430,000 from $435,000 in July. It was $439,000 in June.
Truman said Wednesday that the average sale price in August was affected by the number of sales in the million-dollar-plus category.
In August, he said, 38 homes sold for more than $1 million at an average sale price of $1.5 million.
This compares with 61 sales in the upper-end market in July with an average sale price of $1.7 million.
Official Multiple Listing Service data for the month of August is expected to be released today by the Calgary Real Estate Board.
"If you get rid of the million-dollar sales . . . and compare them month to month, well August was down $2,000 compared to July," Truman said of the average sale prices for single-family homes.
There were fewer million-dollar sales in August and that skewed the average price, he said.
"But if you look at the median price, it was only down by $5,000 and that means the same thing: there were fewer million-dollar sales."
For August, there were 1,318 sales in the single-family home category while there were 598 sales of condominiums. In August, the average sale price of condos was $320,790 -- a slight increase from the $318,582 in July.
"My guess is that when people see the average price go down so much, they're going to hold off probably on buying until they see it stop, right, and then the floodgates will open again when they see it turn around," said Truman.
According to Truman's website, the average sale price of a single-family home in the past seven days, as of Tuesday, was $480,766 and the average sale price on Sept. 30, 2006, was $426,690.
In Edmonton, where real estate had also been climbing fast, the same sag in the market is being seen.
Edmonton-area home prices fell almost $10,000 in August -- the deepest drop in the city's history.
The $344,792 average, for all forms of housing, was down 2.8 per cent from July.
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Chandresh
Advice is free – lessons I charge for!!
I would like to buy when price make sense.
I am not convinced why I should buy a $400K+ cardboard and plastic shoe box size condo here in Calgary or Edmonton.
Some people called it pessimistic view. It’s all depending upon which side of fence you are standing. But market will take own norms and we have to watch. There is no business/market in world which can go up all the time.
Quote:I understand your point of view.
Originally posted by rahul_singh23
I would like to buy when price make sense.
I am not convinced why I should buy a $400K+ cardboard and plastic shoe box size condo here in Calgary or Edmonton.
However, you have to understand that the market price of any commodity in a free market economy reflects what consumers are willing to pay for that product, unlike a communistic economy where the price is set by the Govt. and [is supposed to] represent the labour value of the product.
You are right that it may be a cardboard and plastic shoe box - that is the materials and labour value of the item.
Market price is quite different.
Why are people willing to pay thousands of dollars for diamonds, which are nothing more than pieces of rock created under the surface of the earth?
Quote:Some do.
There is no business/market in world which can go up all the time.
Consider precious metals and labour.
Inflation adjusted, these commodities have been steadily increasing in price during the last several decades, although very slowly.
The price of labour has increases significantly since the post war era - too bad we can't "invest" in labour
Precious metal also increases, although at a very slow rate, adjusted for inflation.
I am sure there are others.
How and when will you decide that the price is appropriate for a "cardboard and plastic shoe box"?
And on what basis will you decide?
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Reasons why prices will go up (from investors, or real estate agents, or real estate associations) and why prices are going down:
Prices are falling this Summer: People are on vacation, things will pick up in the fall. Once people are back to work and school, things will pick up.
Price drops in the fall: People are busy getting back to work and school and things will pick up by the winter.
Prices drop in the winter: It's too cold to show houses and people are in holiday mode. THings will pick up the spring. Prices always "spring" up in the spring!
Prices drop in the spring: Due to weather conditions in the spring (rain/lack of rain/too much snow/not enough snow) prices are temp. down, but will pick up in the summer. Summer is the best time to show.
Nice cycle eh? I didn't make these up, these are actual excuses i've read from various Real estate associations in the u.s./canada.
Go read the NAR website in the u.s.. Read the excuses by the EREB and CREB.
http://www.ft.com/cms/s/0/31207860-647f-11dc-90ea-0000779fd2ac.html
oh yes I forget that link talks about US housing which effect US,UK and all Europe housing and banking system. Canada is different so there will be no price down here. Infect Calgary and Edmonton is the biggest hit in last 2 months.
I was on vacation in Okanagan Valley so called retired paradise. There are tons of house sale board all over Kelowna and other cities. People are talking hold for next few months or a year these price will go down bottom.
Do you like to work whole life for bank:
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2007/03/reliant_sees_ca.html
