Fewer homes sold in St. Albert so far in 2011

Fewer homes sold in St. Albert between January and July than in either of the two previous years, but prices remained relatively constant.

A total of 445 single-family dwellings sold this year compared to 514 the year previous. In 2009, a total of 602 homes had sold by the end of July. But throughout all the months, in every year, average prices hovered between $400,000 and $450,000.

“It’s steady as you go. We are marginally down in the number of homes sold but house prices remain steady,” said James Mabey, broker/owner for Sutton Nor-Vista Realty.

Year-to-date condominium sales are also somewhat slower, with 147 units sold this year compared to 183 last year and 157 the year previous. But again, the average selling price was constant at around $260,000.

“It’s an issue of supply in the marketplace,” said senior housing analyst Richard Goatcher of Canada Mortgage and Housing Corporation, confirming that, throughout the Metropolitan Edmonton area, a large number of listings provides home buyers with an advantage.

Currently in St. Albert, there are active listings for 310 single-family dwellings and 94 condos. The average number of days on the market is 53.

St. Albert Royal LePage manager Shirley Williams agreed that sales numbers are down slightly, but stressed that the summer months are always a quiet time for realtors.

“People are away on vacation and it is a buyers’ market with lots of choice. The higher-priced homes are taking longer to sell and people need to be competitive with their pricing,” she said.

The local housing market is poised and ready to improve as big projects such as the proposed Fort Saskatchewan-area upgrader get under way. This week, Edmonton’s unemployment level was posted at just five per cent.

“The unemployment statistics show people are working but there is a lag time between the time they get working and when they purchase a house. It takes a whole year of employment before you qualify for a mortgage, so we expect to see an impact in the rental market before we see it in the home sales market,” Goatcher said.

Mabey also pointed out that he has heard a lot of interest lately in area commercial land sales and he believes that is another marker that shows housing sales will improve.

“There’s a lot of chatter about the industrial and commercial land sector, not necessarily in St. Albert, but for sure in Edmonton. We have to wait now for that to trickle down to the housing market,” he said, adding that the ability of purchasers to get funding for mortgages also influences sales.

“We’ve had some sales this year that didn’t go through because the lenders are a little tougher with their qualifying criteria. For example, self-employed people or people who may be working on contract have a more difficult time qualifying,” he said. “The ability to get financing definitely has an impact.”