Edmonton Real Estate Blog

This has been a year of ups and downs as we saw house values increase in value from January until the beginning of June. We did however see valuations drop about 10% since that time giving back any gains that we might have made in the beginning of the New Year.

The good news is that the listing to sales ratio has drastically improved in the last month. As of today December 13th, 2010 there are 2265 single family homes for sale in Edmonton proper. In the past 30 days there have been 525 single family homes sold in Edmonton proper.

This would give us a listings to sales ratio of 4.31:1. That is a significant improvement over the ratio hovering around the 6:1 that we saw last month and is basically at the 4:1 ratio that we need for a balanced or neutral market.

The window of opportunity is closing for people thinking of buying. With the oil and gas industry going so strong right now I am fully expecting this ratio to drop over the next 3 months and we will start seeing valuations increase.

If you don’t buy now you will probably have to pay more money for your next home come the New Year.

That is my last two cents until the New Year. I would like to wish everyone a Happy Holidays and a prosperous New Year.

 Make sure to read our BLOG every week to see how the trend changes.

As we enter our spring marketplace we are seeing the market continue to be strong.  As of this afternoon April 08, 2010 there are 2,348 single family homes listed in Edmonton proper.  That is up slightly from last week’s number of 2,240 available homes for sale.

In the past 30 days we have seen 749 single family homes sold.  That is up from last week’s number of 661 sales in the previous 30 days.  That is a significant increase for a one week period.

What is more important is the listings to sales ratios.  That ratio is now 3.13:1, lower than the 3.31:1 ratio that we had the previous week.  This indicates to me that we are still going to see continue upward pressure on valuations.

If you are thinking about buying this year you might want to consider buying right away.  You have two threats that you have to consider if you have been thinking of buying.  Firstly, we know that there is pressure for prices to continue to go up.  Waiting will mean you will have to pay more for that home you want.  Secondly, there is the expectation that interest rates will go up again this summer.  If this happens it will make your mortgage payments more expensive and will reduce the amount of a mortgage that you will be able to qualify for.  The new mortgage rule changes require that you be approved at the 5 year rate regardless which term you choose.

If you are thinking about moving up to a larger, more expensive home, again you want to make the move as soon as possible.  Yes, your home will go up in value, but your future home will have gone up more significantly that your current home.  The end result is that you will have to carry a larger mortgage by waiting for your home to get to a higher value.

This is my two cents for this month.  

If you have any questions please don’t hesitate to call.  I would love to help you. (780) 634-8151

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.”

Single family residences in the Edmonton area sold on average* for $388,473 in March which is up 4.7% from February and 11% from a year ago. Condominium prices rose by 8.4% month-over-month and 10.5% year-over-year. The average condominium sold for $252,416 in March. Duplex and rowhouse prices (at $313,836) dropped a third of a percent in March but were up 10.4% from a year ago. The average residential price was $343,607 (up month-over-month by 8.5%).

Sales also demonstrated the optimism of the marketplace. 3,728 residential listings in March were up over 30% from a year ago and up 246% in the first quarter. Residential sales of 1,571 properties in March were up 15.1% from a year ago and 77.3% in the first quarter. Sales were up from 1,307 in February: a 20.2% increase. The March sales-to-listing ratio was 42%; down from 52% in February.

“Seller activity has boosted the inventory to 6,770 residential properties,” said Westergard. “I am less concerned about available inventory now than I was at the beginning of the year. I think the market has reached a balance between buyers and sellers.”

All major banks raised their fixed mortgage rates in late March and the Bank of Canada has warned that interest rates will rise again after the second quarter. Many buyers are hurrying to lock in rates and find a home before the more stringent qualification requirements for mortgages come into effect on April 19. Alberta will not be influenced by the GST harmonization taking place in Ontario and BC so we may not see the sales slump in the second quarter that is expected in those two provinces.

The average days-on-market in March was 41 as compared to 47 in February.

-30-

Highlights of MLS® activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Source: REALTORS® Association of Edmonton

Well it is appearing that the Edmonton real estate market might be stabilizing.  As of this morning there were 2,240 single family homes for sale in Edmonton proper.  That is an increase of 113 homes over last week.

In the past 30 days there were 661 single family homes sold in Edmonton proper.  That is an increase of 42 homes sold over what sold in the previous 30 day period.  That will give us a listing to sales ratio of 3.39:1, which is slightly better than last week, but I would be cautious to think valuations are going to rise again.  I think we are going to see more stabilization at this time unless we start seeing the ratio drop further in the coming weeks.

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

As I anticipated, the trend is continuing.   The number of listings coming on the market is outpacing the number of sales.  As of this morning there were 2,127 single family dwellings in Edmonton proper on the market an increase from last week’s inventory level of 2,003. 

In the last 30 days we had 615 single family dwellings sold in Edmonton proper.  That number is actually down from last week’s number of sales of 619. 

This gives us listings to sales ratio of 3.46:1 up again from last week’s ratio of 3.24:1.  So the pressure for valuations to rise is easing and could very well go the ratio of 4:1 very soon.  If we break that we can start seeing valuations drop. 

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

Well as I expected to see the inventory level is starting to creep up as we get deeper into our spring marketplace.  As of this morning there were 2,003 single family dwellings listed on MLS in Edmonton proper.

In the last 30 days there was 619 single family dwellings sold in Edmonton proper also an increase from last week’s totals.  This however gives us a listing to sales ratio 3.24:1 which is an increase from last week’s ratio of 3.06:1.

This is not a trend that I am liking to see at the moment as that ratio get closer and closer to 4:1 then we wiil see the market become neutral.  If the ratio goes over that number then we might even see valuations drop again.

With the new mortgage rules coming into effect on April 19, 2010, and the potential for an interest rate increase shortly that might negatively affect the market.

If you a buyer you will want to get approved and buy before the April 19, 2010 mortgage rule changes as it will reduce the amount of mortgage you will be able to get.

Edmonton, March 2, 2010: Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.  

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

Highlights of MLS® activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Source: REALTORS® Association of Edmonton

Well, it looks like we are going to have an early spring this year and the real estate market is reacting accordingly coming on strong early as well.

As of the morning there were 1,727 actives single family dwellings on the market in Edmonton proper on MLS, which is a slight increase from last week’s number of 1,669.  More and more people are putting their homes on the market on a daily basis.  This gives buyers more selection, but I am concerned that the increase in supply will start to surpass the demand at which point that will negatively affect valuations.

At this moment we are just fine.  The sales are increasing at a faster rate than the supply.  In the last 30 days there were 584 single family dwellings sold in Edmonton proper – an increase from last week’s number of 517.  More importantly, the listings to sales ratio is now below 3:1 at 2.96:1.  With that kind of ratio I expect to see valuations to start to increase immediately.  That is bad news for buyers and they will need to buy right away before prices rise again.

Please call me if you have any questions about this, or anything else related to Real Estate. I would love to help you out. (780) 634-8151

Serge Bourgoin founding and managing partner of Team Leading Edge at RE/MAX Elite

Team Leading Edge… Leading the way with extraordinary service

Edmonton’s ever improving economy continues to bolster residential real estate activity in the city. The number of homes sold in Edmonton is up 21 per cent to 884 units, while average price has largely stabilized at $314,783. Balanced market conditions have, for the most part, re-emerged in 2010. Values, still off peak 2007 levels, have hit a plateau, as buyers take advantage of opportunities at all price points.

The oversupply of listings available for sale throughout 2008 and 2009 has largely been absorbed, with inventory returning to more normal levels. Active listings now hover at 4,864, a decrease of 26 per cent from one year ago. While new listings have fallen off, the supply of homes listed for sale is adequate in most price ranges and neighbourhoods. First-time homebuyers continue to represent the lion’s share of activity in the marketplace, driving sales of homes priced from $300,000 to $350,000. Multiple offers are starting to occur, but they are the exception, rather than the rule. Move-up buyers have ramped up activity as well, spurred by exceptionally low interest rates. Condominiums have been moving steadily in recent months, but supply still exceeds demand.

A strong spring market is forecast for 2010, supported by a serious upswing in consumer confidence levels. Recent announcements regarding major investments in the oil sands have tremendous potential for Edmonton’s economic future. The provincial government is also co-operating with the major players in the oil industry to create a positive business climate and is expected to return to surplus budgets within three years. While there may be some skeptics in the audience, it’s hard to ignore the city’s growing optimism.

Active listings down in 81 per cent of markets in January

Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

Affordability is the catalyst for the vast majority of purchasers in today’s housing market. While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo (-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax- Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

There have never been so many motivating factors in play at once. We’re in for a heated Spring market that will, in all probability, spill over into the summer months as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings-especially at the entry-level price point-experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.

The level of frustration is growing, as pent-up demand builds. For every successful offer, there are those that will walk away empty-handed. They’re thrust back into the buyer pool and the process starts all over again. Some buyers are upping the ante, while others are considering alternate housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.

Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a reality-particularly in the larger centres. This simply means they may go smaller or further in their pursuits.

It’s been a 180 degree turnaround from this time last year. It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders. The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the remainder. Opportunity exists in some areas, but the question is for how much longer?

Source: RE/MAX Market Trends 2010