Another good article that was posted by the REALTORS® Association of Edmonton.  You can read the article below, or view it online by Clicking Here.

Will housing prices go up or down: it depends on how you look at it.

They say that figures never lie. Mark Twain also commented that there are lies, damn lies and statistics. Where will housing prices go in the next year. The best indication of future performance is past performance.

As we look at the year end figures it is helpful to plot a trend line over the month to month variations in housing prices. This gives an indication as to whether prices are generally going up or down. Unfortunately, the result changes depending on what set of dates you choose to plot.

In the chart below we have listed the All-residential prices in Edmonton sold through the MLS® for the past four years. It is clear from the straight trend line that prices have gone down during that period and could reasonably be expected to continue falling. Where the fall ends is anyone's guess. Advice would seem to be sell now but delay buying until we reach the bottom.

Now let’s take a look at the same numbers but just for the past two years. Despite the fact that prices have dipped steadily in the second half of 2010, the overall trend over two years is decidedly up. This is a more optimistic look. Based on this chart you should delay selling for awhile but get into the market to buy becasue homes will be more expensive in the foreseeable future.

The question you have to ask is will this trend continue or will it revert to the four year trend? It depends.

The ultimate answer is that real estate investing should be for the long term and if you buy now and hold for at least a couple of years, your real estate value in this market will increase. Call your REALTOR® to help you sort out the market in your situation.

Happy house hunting in 2011.

If you need help with buying or selling a home in Edmonton, Sherwood Park or the surrounding areas, give me a call and I would be happy to help!

Lisa Brown - REALTOR® with RE/MAX Real Estate
Cell: (780) 886-9166 Email: lisa@youredmontonhomes.com