Home sales are bringing fewer dollars into the real estate coffers of St. Albert.
Single-family home sales were down $8 million in St. Albert in the first three quarters of this year when compared with sales over the same nine months in 2010. When compared with 2009, January to September sales were down $35 million.
“That has a major effect on the cash flow in the community,” said Jon Hall, communications manager of the Realtors Association of Edmonton, who noted that post-sales purchases are considerable.
“We estimate after-purchase multiplier-effect purchases at $42,400. After the house is bought you still have to pay realtor fees, lawyers, moving costs, plus you need curtains, landscaping and so on,” he said.
Hall left condominiums out of the mix when he tallied the value of real estate sales in St. Albert. Nonetheless, the numbers are telling. To date sales of single-family homes totalled $301 million two years ago compared to $274 million in 2010.
So far this year single-family dwelling sales are at $266 million.
The average year-to-date price is down slightly from last year, too. Over the first nine months, the average single-family house sold for $424,441 this year, compared to $438,701 the previous year.
In the month of September alone, the average selling price for a St. Albert single-family dwelling was $415,312.
Pair that with the fact that houses remain listed for 46 days compared to 36 the year previously, and you have a picture of a slower market, Hall said.
“The days on the market figure suggests that the St. Albert market has slowed in 2011 despite lower prices,” he said.
For the most part local realtors agree, but note that 60 St. Albert single-family dwellings sold in September compared to 49 a year ago.
“There was a flurry of activity for the past few weeks. I think buyers were concerned about selection because we shed some inventory,” said James Mabey, broker/owner of Sutton Nor-Vista Realty.
Mabey explained that towards the end of the summer, some sellers took their homes off the market, but there were some price reductions as well.
“There were more than 300 (single-family dwelling) listings for most of the summer. As of Monday there were 246 single-family house listings and 80 condos,” he said.
Royal LePage ArTeam Realty owner Shirley Williams also noticed more sales activity in September, but stressed that there is normally a seasonal drop in sales at this time of the year.
“I would estimate 83 per cent of the buyers who are going to purchase a home this year, have already bought. The serious purchasers want to be in before winter,” she said.
In many instances those more serious buyers are also investors, Williams said.
“Our office has had quite a few investors buying for rental purposes and the rental market in St. Albert is good right now. They are renting them out. No problem,” she said.
Condominiums appear to be holding their own in St. Albert. Although 20 fewer condos sold between January and September this year than in 2010, the average selling price remained constant. Year-to-date the average selling price for a St. Albert condominium was approximately $265,000.
