Edmonton Real Estate Board | June 2019 Market Update

Edmonton Real Estate Board | June 2019 Market Update


– Hey everyone, Richard Robbins here. Well, the numbers are in for
the Edmonton Real Estate Board for the month of June. I’m gonna do a couple things different in this particular report. Number one, I’m gonna compare
the first six months of 2018 to the first six months of 2019 as we’re half way through the year. Also, at the very end what I’m gonna do, I’m gonna show you what
percentage of the total sales in 2018 took place in the
first half of the year opposed to the second
half to get you an idea what you can expect moving into
the second half of the year. First, 2019, January to June. What’s going on? Our sales in June were 1811,
they were down slightly from May which was 1981. We were down by 8.6%. Now, this was common in every market that we report in across
Canada which is very normal. May, is quite often the
busiest month of the year. Could be April, but it’s usually May and then June it starts
to slow a little bit as we move into the summer, right? So yes, it was off a little bit here. But here’s the number,
the most important number that I’m always concerned with
which is months of inventory. So you take the active listings
at the end of the month. In January, you had 7100, we
divide the sales into that and that gives us months of inventory, determines the strength or
weakness of a market, right? Four to six, balanced. Above six, is gonna be buyers, below four is gonna be sellers market. Look at, we started 8.9
months of inventory. Obviously buyers market. Went to 7.5 in February, 6.9
happened right here in March. April, 5.4, 4.8 in May and
then back up to 5.2 in June. So, basically we’re stayin’ right around and you can see, right around
that five months of inventory. So, you’re sort of in a very
balanced market right now. Now, probably inexpensive
detach is a little stronger, condominiums probably a little weaker ’cause there would be
more months of inventory in different property types. What’s goin’ on with the prices? We started the year at 339,
we’re now sitting at 366, however, we were down a little bit. We were 369 last month
and we’re 366 this month, so pretty well the same if you look at it. But right here you’re in
a very balanced market. Here you’re in a buyers market, little more difficult to work in, so generally thing are not all bad. What about June last
year to June this year? 1800 sales last year,
1811, okay, so just up. Might as well say the same. What about prices? 378 last year, 366. Why would this be happening? Have a look at this. This here is probably
the most important graph you could use with
buyers and with sellers. Help them understand the
market and it shows the trends. It’s all based on months of inventory, ’cause that determines
the strength of a market. So if we look here, we go back to 2017, you started with seven
months of inventory, okay, down a little
bit, you know, back up. We ended at 6.3. So the end of 2017, we ended at 6.3. What about 2018? We start at 7, right
where we started in 2017. Okay, we went along and we ended
at 8.8 months of inventory. Buyers market, right? Where do we start this year? Nine. So, it went nine and it’s just
constantly been coming down and if you look right here, you can see the last three months, our months of inventory have been below what it was in 2018. So, all good news everybody. We had 5.2 months right here in 2019, we had 5.7 in 2018, so overall, things are going the right way which is all good news. Okay, first six months of the year. Last year we did 8790 sales, 8440. Our sales are off by about 4%. Why? Well, the first three months of the year were pretty weak, right? But here’s what’s interesting. In 2018, if we take all of the sales and we look at it, 54%
of the sales took place in the first half of the year and 46% in the second half of the year. Again, and every market
in Canada’s the same, that more sales will always take place in the first half of the year. Now the reason I bring this up is because I don’t know where you are as a sales professional and your goals. Are you ahead? Are you behind? Are you on track? But understand, you
have lots of opportunity in the second half of the year. So, be careful what you
do in July and August. Here’s my recommendation. Set a summer goal. So, say, how many sales am I
going to do in July and August? And then say, now, what are the
behaviors that are necessary to make those sales come true, right? You know, how many people
do I have to talk to? How many videos do I have to sell? How many texts do I have to, or, videos do I have to make and send? How many texts do I have to send? How many emails do I need to do? How much lead gen? And determine the behaviors. Now, I get we wanna go on holidays. Hey, I’m all for that,
havin’ a really good time, but I think in the summer, what happens is people start to cruise
through the summer. Well, cruising through the summer is gonna make for a very slow fall because it is the work you’re doing now that will determine how busy
you’re gonna be in the fall. So, understand that right
now, reaching out to clients, lead generation, lead
conversion, lead follow up, you’ve gotta be doing
that in July and August and I promise you this, if you set goals for yourself
in terms of the behaviors, right, the things that you
can control every single day, your fall’s gonna be much stronger. Because, look at this, we’ve
got less business available to us in the last half than
we do in the first half. Hope that was helpful, everybody. All the best, enjoy the summer, and remember, it’s a
beautiful life, make it count.

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