Friday, October 16, 2009 Why have new home prices dropped while resale homes have not?by Ben Officer on Fri, Oct, 16, 2009 06:31 PM
The recent StatsCan report about how New Housing Prices in the markets such as the Edmonton real estate market have dropped by up to 11.4%, which is actually not really surprising given a number of factors. During my reading of various sources, opinions, and from my experience it happens that resale homes are bought and sold faster at this time in large cities like Edmonton (and by association St Albert) by quite a few first-time or move-up buyers purchasing lower priced, older homes. This pushes up the prices. Also, this is coupled with the fact that new home builders have been reducing their prices to get some of their inventory moving. This is normal during the recovery from a recession. Location is a factor too, because buyers like to buy within more of the core (not necessarily downtown) in cities like Edmonton, before looking in the outer areas for the New Homes. Gas for the car or truck is not going to be this cheap for ever, so if you have a long commute you might like to buy closer to work. As the number of resale homes is depleted and builders start to build more new homes again, this segment should begin picking-up. Ben Officer REALTOR® RE/MAX Real Estate (Edmonton) |
| *** The author of this blog, Ben Officer, is a licensed REALTOR® in the province of Alberta. The opinions expressed within this blog are those of the author and are simply that, opinions. The views expressed in this blog are not intended to advise you, as your needs may differ depending on your particular situation. The information provided in this blog is not guaranteed to be accurate and is subject to change at any time. For legal advice/information, please consult a lawyer. For mortgage advice/information, please contact a licensed Mortgage Associate. For tax advice/information, please consult an accountant. For investment advice/information, please contact a financial advisor. *** Blog Disclaimer - The information contained within this blog and posted by the author is believed to be true but cannot be guaranteed to be so. The author of this blog takes absolutely no responsibility for the comments posted by third parties on this blog. |
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