The split-level home in Forest Lawn is not the easiest sale in the neighbourhood.
With almost 2,000 square feet and a large garden in the back, it’s more expensive than many of the bungalows in the area. Three of those recently sold. But Emmett and Nicole Conway, the owners of the home, aren’t worried.
Their house has been on the market for just over a month. And despite the economic downturn, and the higher cost at which they are selling – more than $350,000, – the buyers are looking, they said.
“If you had talked to us last week, we may have been a little more frustrated,” said Nicole. “It got quiet for a while but now it picked up again and we are hopeful to sell the home soon.”
There’s been much talk about the state of the Edmonton housing market. Falling oil prices, fewer jobs and a slowing migration brought sales numbers down across the region since early this year.
Single-family home sales in St. Albert were down to 68 last month, compared to 87 in April 2014. Residents also sold only 19 condos, compared to 27 a year ago. Still, realtors in the city remain positive.
Cheryl Rolfe with Re/Max said sales at her office increased steadily since January. She does not expect sales numbers will top last year’s. But she also doesn’t worry about a large downturn.
Compared to other markets in the region, most buyers in St. Albert already live in the city, she said. That means realtors often sell to people who downsize or upgrade, and need to attract fewer people from other markets.
Also, many residents don’t work in the oil industry, she said. They can still afford to move.
“Yes, we are hearing lots of bad things but you have to look at the local market,” she said. “I haven’t heard of many people in St. Albert that have lost their jobs.”
Rolfe added that realtors noticed an uptake of sales early this year, with multiple offers on homes under $400,000. She thinks sales will continue to increase as more homes come on the market in the summer.
But she also said many people bought early this year, after Stephen Khan, St. Albert’s former MLA and minister of Service Alberta, motioned an increase to registration fees for new property owners.
Had that come into effect by July 1, the flat-fee portion for land title and mortgage registration fees would have gone from $50 to $75. But on the variable, or per-dollar fee, the increase would have been dramatic, said Rolfe.
For a purchase of a $500,000 home with a $400,000 mortgage, the fees would have gone from $290 to $1,230, she said. The new NDP government rescinded that motion.
“But I think there was a little bit of a blip because people were trying to make their purchase and have their possession before that was coming into effect,” she said.
Rolfe added that homes under $400,000 are selling quickly, while more expensive homes take some time. Of the 321 single family homes now on the market, 164 are listed for over $500,000 (the average price is $741,963).
Not everyone can afford the utilities and down payments on expensive homes, she said. She thinks prices for expensive homes will drop as more come on the market.
For people like the Conways, that means being competitive, said Guy HĂ©bert with Bermont Realty.
He also isn’t worried about the downturn in the economy. There are still buyers in the market, and people are optimistic, he said. But he advises those selling more expensive homes better consider their competitors.
Buyers want homes that don’t need much work..
“A lot of buyers are simply looking for a home they can move into,” he said. “Because at that point they sold their property and they need a home to move into that doesn’t need any work.”
