Home Sales in Edmonton real estate expected to drop in 2009

A drop of 10.5% is expected in Edmonton real estate sales for 2009

A recent article in Edmonton Journal has forecast Edmonton real estate to drop 10.5% in sales for 2009. While the drop in Edmonton home sales is less than ideal news for Edmonton home sellers, this is better than what could be. The slow down in Edmonton real estate sales will bring total forecast Edmonton home sales to 15,500. The number is forecast by the Edmonton Real Estate Board and represents a 1,800 drop in Edmonton real estate sales from the previous year.

Edmonton real estate prices will remain stable in 2009

The article further forecast while Edmonton real estate sales will fall, however the sales price will remain flat. As less units are sold in the Edmonton real estate market the price theoretically should adjust up. However, Edmonton builders have reduced the amount of new housing starts which has reduced the new inventory coming to the market. The Edmonton real estate average price for single family homes was around $351,000 in 2008 and this will continue to be the Edmonton home price in 2009. Edmonton home buyers who are waiting for a lower price may be frustrated in their pursuit of lower Edmonton home prices.

More people looking for Edmonton homes but can they afford them

Another take on 2009 is the ability of Edmonton home buyers to actually take advantage of lower Edmonton real estate prices due to falling values in their stock market related investments. Imagine finding the ideal Edmonton house price and location but not having the financial ability to take advantage of this because your down payment money is insufficient. This double-edged sword will be sharp s the Edmonton house prices start increasing at the same time your market portfolio increases. A good bet for home buyers who have saved their down payment money is to make their purchase this year of the Edmonton home that they find. The best deals may be found this year for Edmonton house prices as the economy slowly improves and allows for the maximum time to shop and choose. A luxury that few Edmontonians could afford to do as Edmonton homes have not been this affordable for quite some time.

Mortgage rates make Edmonton real estate more affordable

There is some great news for those Edmonton home buyers and home sellers in 2009. The Canadian mortgage rates are now at their lowest that anyone can remember. The Canadian prime rate is now at 3.5% which is a great rate for Edmonton home buyers to get a pre-approval and hold their low rate for their potential purchase. Canadian mortgage rates in conjunction with a 35 year amortization has made 2009 an affordable year for a larger percentage of potential home buyers. Even with a higher Edmonton real estate price, the rates and amortization allows Edmonton home buyers the same affordability with their monthly payments. A change in amortization from the traditional 25 year to 35 year amortization can reduce the monthly payment by $200 or more for a typical mortgage. In addition, Canandian banks now offer a lower down payment requirement for conventional mortgages of 20% which further enables Edmonton real estate buyers to take advantage of a home purchase with a lower deposit. This is just in time with the decrease in everyone’s stock market portfolios.