I recently met a nice young couple from Edmonton, Alberta that were vacationing in the Naples area, and in other places in south Florida. The were hanging out in a coffee shop and struck up a conversation with me. Their names were Robert and Shawna and they just happened to be realtors in Edmonton. In fact they told me they were the number one real estate team in their office last year. Pretty impressive, so I thought I would pick their brain on what is happening back in Alberta with regards to home sales.
They told me that the market was very good and prices had rebounded to their record levels that were last seen in 2006 and the beginning of 2007.Of course we all know what happened in 2008 with the great recession. Even booming Alberta saw home prices decline significantly and foreclosures go up. Now Alberta price declines and foreclosures were a far cry from the kind of thing we saw in south Florida where things were down right catastrophic, but still the recession had a big impact there too.
Robert told me that there is not a lot of inventory in Edmonton right now, and not a lot of homes for sale in central Alberta with either single family homes or condos. Good homes that are priced right will sell quickly, sometimes with multiple offers. However he cautioned that there is none of the unchecked optimism that gave rise to the prices of homes doubling almost overnight in 2006 and 2007. People are more cautious and remember that things can change quickly. So, the market is very good and prices are rising in relation to the demand, and not speculation. The average price for a single family home is $405,826 and for a condo is $240,000.
Here in Naples things are also very good with a record number of sales last year. Prices increased by 16% in 2013 and there is a 7 year low in inventory. Builders are busy trying to tap into the demand with new homes becoming available as soon as they can. However unlike Edmonton, Naples has a long way to go to catch up to the record selling price of $717,534 in 2006. In fact prices would have to rise by over 60% to get to the same levels, so homes are affordable, at least when compared to historic prices. I do however expect prices to continue rising moderately for the next few years because this is such a great place to live. Who wouldn’t want this fantastic weather, ocean, and lifestyle?
Indeed, Robert and Shawna said they would consider moving here for six months of the year so that they can miss winter, which can be pretty harsh in Edmonton compared to the weather here.
If you need any more information contact REMAX Edmonton Real estate 102 12650 – 151 Avenue NW, Edmonton, AB T5X 0A1