Blame Alberta! Whether Prices go up or Down it's Our Fault!

When prices were skyrocketing, Alberta was praised for bringing up the national average sale price, and now prices are falling and we are to blame for that too! At least according to the media interpreting stats released by the Canadian Real Estate Association yesterday.

According to the report new listings have reached record levels nationally (up 8% from the same time last year), while sales are decreasing (down 13%).

"New listings reached record or near-record levels in Toronto, Vancouver, Ottawa, Regina, and Saskatoon. This more than offset a decline in new listings in Edmonton and Calgary, which continue retreating from peaks in March."

Has Canada finally caught America's cold?

"The Canadian real estate market, while cooling, is still much different than the U.S. market with its record low number of foreclosures or defaults" says the President of The Canadian Real Estate Association, Calvin Lindberg. In the United States home prices dropped by 14.1 per cent in the first quarter of the year, according to the Case Shiller national home price index."

The stats show prices are up for the first half of the year - 3.2% over last year at the same time and 1.4% from the end of 2007. However, prices for June dropped .4% and this seems to be what the media has grabbed onto.

From the report:

"The slight decline in average price comparison reflects the impact the surge in average price in Calgary and Edmonton had last year. The average price in these markets retreated after rising dramatically last year, but has stabilized since March 2008 in line with a balanced market. "

From the media:

• Housing not so hot, Winnipeg Sun
• Calgary Home Sales Take 32% Slide, Calgary Herald
• First Decline in Nearly a Decade, Metro Canada
• Home Prices Slip for First Time in 9 Years, ReportOnBusiness.com
• HOUSING: Warnings grow of further weakening in Canada, Alberta Index
• Homebuyers get a break as BC house prices flatten, Vancouver Sun
• Housing prices drop across Canada, But Ontario still strong, CityNews
• Home Sweet Home gets Cheaper, The Gazette (Montreal)

Nearly everyone of those articles pegs the price drop on Alberta, when we actually saw average prices increase in June. Oh well, I guess it's nice to get some attention after years of being ignored!

Anyway, there are certainly interesting times ahead for us (Edmontonians, Albertans, Canadians...Earthlings...), lets hope the ride isn't too bumpy.