Edmonton Real Estate – What is it worth? Is there a future upside potential? When is good time to buy? These are some of the question we maybe asking ourselves.
Most of the first home buyers ask if they should buy now and if their home will increase in value in a future. To answer this difficult and profound question we should before ask couple important and relevant to the subject questions: Do you mean immediate future and how immediate? What is better renting or owing a home? In order to understand the first question, we should look at the historical data and try to derive to an intelligent conclusion based on the historical facts. As to renting, I don’t think there is a need to discuss this subject any further.
In August of 2010, the cost of an average residential property in Edmonton and area was $325,588. Those who watch the news have heard about current high housing inventory and low number of sales. By comparison, same time last year it would cost you $318,321 to buy real estate in Edmonton. It is still more expensive this year than in 2009. Looking back to 2006, we all have seen a huge jump in prices where Edmonton real estate went up from $199,148 at the beginning of the year to an awesome $303,820 in January of 2007, 52 percent increase just in one year. If you bought a home prior to that date, you have done well for yourselves and your family. On that note, some of the more expensive homes that have been recently sold, are purchased by second home owners due to the equity which they gained from buying a home before 2006 and selling in the last couple of years.
The Edmonton real estate market was at its highest point in July of 2007 during which time residential properties have sold on average for $354,718. It has been down since by 8.9 percent.
Ten year age, in September of 2000, the cost of an average Edmonton residential property was $122,397. What about 20 years back, 30 or even 40? Well, at the beginning of 1990 it would cost you $94,566 to buy real estate in Edmonton and same time in 1980, $78,914. Looking back even further, in January of 1970 the average price of a residence in Edmonton was $21,806. Whoa, just in those ten years the gain alone would be a whooping 362 percent. In fact, just in the past ten years alone, Edmonton real estate was up 257 percent, in 20 years 317 percent and 30 years 382 percent. Since 1962 till now when comparing January numbers, out of 48 years in total only 10 years have seen a decline in price, thus 38 years have seen an increase in an average residential price. So what gives, why do real estate prices increase in along run? We all know our little economic friend constantly at work called inflation.
Conclusion: To all the sceptics out there and “penny pinchers”waiting endlessly for another 2006 to come, It pays off to buy and own a home, not just because we all have to live somewhere but it makes sense from a financial point of view. When should you buy? Does it matter when, today, three, six or twelve months from now. I would say no, it does not. No one has a crystal ball and nobody knows when the next hike or fall down will occur. Instead, we should look at a larger picture when purchasing real estate in Edmonton or anywhere else. Time is a true measure of greatness!
All data provided by The REALTORS® Association of Edmonton
Future Of Edmonton Real Estate Market - Is It Good Time To Buy Now?
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