Edmonton Real Estate Blog

To view and search all Edmonton and area MLS listed homes visit me at http://www.findmyhouse.ca/

Well we are off to a new year with all hopes and expectations of a great year.

Currently there are 2,319 single family homes on the market in Edmonton proper. However in the last 30 days there only has been 230 sales. That gives us a listings to sales ratio of 10.08:1

That is the highest I have seen this ratio since the market turned in mid 2007. Now part of that has to be attributed to the fact that these numbers reflect the activity in December which historically has been one of the slowest months of the year.

Having said that the ratio is still way to high and I would expect there will be more pressure on valuations in the incoming few weeks of the new year.

To view and search all Edmonton and area MLS listed homes for free visit me at: www.Findmyhouse.ca

As of this morning there were 2,982 single family homes available in Edmonton proper. In the past 30 days 415 single family homes were sold in Edmonton proper. That would give us a listing to sales ratio of 7.19:1

With a ratio still significantly higher than the 4:1 required for a neutral or balanced market I expect there to be continued downward pressure on valuations.

Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX

Recovery linked to economic stability next year

Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

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RE/MAX Housing Market Outlook 2009…2

Canada’s real estate environment is considerably more complex than it has been in recent years. The landscape is definitely changing — with most markets shifting into either balanced or buyer’s territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace. In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.

To view and search all Edmonton and area MLS listings visit me at: www.FindMyHouse.ca

REALTORS® had lots of time to work with their best clients in November as housing sales slowed. The number of residential sales during the month dipped to levels not seen since 1998. The average price of a single family home in the greater Edmonton area remained stable while condo prices dropped for the second month in a row, reported the REALTORS® Association of Edmonton.

“Our members report that there are a lot of potential buyers in the market but many are not ready to commit,” said Marc Perras, president of the REALTORS® Association of Edmonton. “They are being cautious and hoping for further price drops or lower interest rates that reflect the current global economic situation.”

The average* price of a single family residence was down slightly (-0.14%) in November offsetting a slight rise in October. The average price of a single family home was $362,757. Condominium sales took another drop in November (down 2.55%) with an average price of $231,531. Duplex and rowhouses sold on average for $315,813 which was up 2.8% from October. The average residential sales price (including all types of residential property) was $318,588; up by a quarter of a percent.

“Sellers may be losing heart but even in this slow market there were still about 30 housing deals made every day and every home that is priced appropriately will eventually find a new owner,” said Perras. There were 8,015 homes in the local MLS® inventory at the beginning of this month (down 510). 2,036 homes were listed during November and 891 were sold resulting in a sales-to-listing ratio of 44% as compared to 40% last month. Average days-on-market was up five days to 63 and total MLS® sales (including commercial, industrial and residential) was $319 million in November, a drop of $144 million from last year’s November.

To view and search all Edmonton and area MLS listed homes visit me at: www.FindMyHouse.ca

2,980 # of single family homes listed in Edmonton proper
423 # of single family homes sold in last 30 days
7.05:1 listings to sales ratio

The number of homes listed in Edmonton is down slightly and sales are averaging about the same that we have seen in recent weeks. However the listing to sales ratio is still high at 7.05:1 which indicates to me that we are going to see some more downward pressure on valuations, at least in the short term.

To view and search all MLS listed homes in the Edmonton area visit me at: www.FindMyHouse.ca

We all know that the real estate market is bad right now. Valuation have dropped in excess of 30% from it peak. Is that a bad thing or good thing??? Well if you are a buyer that is a terrific thing, specially if you are or want to be a real estate investor.

Currently in Edmonton we have about an overall 3% vacancy rate, but that includes all rental units including apartments. However the vacancy rate for single family dwellings is less than 1% which is great news for the real estate investor wanting to rent single family homes.

With valuations to the level they are now and with the economic outlook for the Edmonton area for the next 10 years NOW is the time to be investing.

With over 20 years of real estate and investing experience I can help guide you to the best investment opportunities out there. Call me today on my cell 780-995-6520 to discuss which opportunities might be great for you.

To view and search all Edmonton and area MLS listed homes for free visit me at: www.FindMyHouse.ca

Top renovation tips to make your renovation run smoothly

1. Budget, budget, budget I can’t say it enough. I’m an optimist who always believes that if you spend money on a quality reno instead of cheaping out, the necessary funds will magically appear. In reality, we know that isn’t true! So make sure you do your homework. Talk to a friend who has been through a similar reno, do as much window shopping and cost-comparisons that you can do. Make sure that you tack on at least an extra 20% for those inevitable issues that will spring up. And check your budget with your contractor or trades regularly to make sure you’re on track. Finally, don’t borrow to renovate if you can. A reno is much more satisfying if you save up the necessary funds before your renovate. Trust me.

2. Find the right contractor We’ve all heard the horror stories (and I’ve certainly been witness to a few of them). My usual recommendation is that the best contractors can be found through word of mouth. But if you can’t come up with a good referral, I am happy to say that you can find great contractors on the Internet. Check out sites such as www.handycanadian.com or www.homerenovationguide.com. Make sure you get several referrals before you sign any agreements!

3. Be realistic Dreaming is the start of any good renovation, but to have a good experience, you have to be realistic about what you can accomplish based on your budget, resources and your existing home. So many of us (particularly in this era of low interest rates and easily accessible home equity loans) will live beyond our means-just to have that gorgeous gourmet kitchen or marble bathroom. If you are absolutely committed to the dream of something that you can’t afford, see if you are able to renovate in stages. For example, in my first home, I really wanted a stone floor in my kitchen. The price well exceeded my budget. I didn’t want to compromise so I decided to wait to do the floor until I could afford the stone that I really wanted. I ended up painting my subfloor a putty grey and had the millworkers design my kitchen with an extra-high kick – which allowed me the room to install the stone floor later. Ironically, I ended up selling the home. One of the things that the new homeowners loved was the painted wooden kitchen floor!

4. Do your research Talk to friends who have renovated as well as other real estate and reno experts. It’s really important before you embark on the renovation rollercoaster that you have a clear understanding of what to expect. Plus, you need to make sure that you bring your thoughts and research to the table. Clip photos out of magazines of rooms that you love. Scour shops and the Internet for the latest and greatest. Have a general idea of how you want the space to look and feel. If you are overwhelmed, find a designer who can help you lead the way. If you want to find a reputable interior designer, log on to the Internet. In Ontario, you can get fantastic referrals through the Association of Registered Interior Designers (www.arido.ca). Other provinces also have their own associations.

5. It’s all in the details Thinking big picture should be commended, but we know that details are what can make or break a reno. I will never forget standing naively in the catacomb that was eventually to become my gorgeous new bathroom, delighted with myself that I had ordered my faucets, my tiles and my vanity. “Where are the rough-ins?” bellowed my plumber? “Rough-ins?” I asked, a shaky note of trepidation colouring the tone of my voice. Within moments, the glory of having provided everything to my trades had vanished as I realized that I had not ordered the “cake” of the faucets, only the shiny chrome icing. My error held up my reno for another two weeks. So make sure you have a list (or multiple lists for each room), and make sure that you confirm and reconfirm that everything has been ordered, has been delivered, etc. TIP: If you want a truly beautiful reno, pick everything BEFORE your reno starts. Something as simple as a cabinet knob can really decide the look of a room.

6. Get advice Now that you’ve talked to the experts, gotten referrals and drawn up your plans, have one more chat with friends or family who have gone through the reno experience. Try to be as thorough as possible-you’ll thank yourself later. I have saved thousands of dollars by having good friends take a look at my plans and assess them from an objective point of view. A designer or contractor may be able to convince you that you don’t REALLY need a six-foot bath, and that a four-foot version is adequate as long as you have a separate shower. It takes a good friend to remind you that YOU love baths and will be unhappy with one that’s designed only to bathe small children.

7. Don’t have any regrets If you follow steps 1 through 6, chances are you won’t have any regrets. But remember, when you choose to renovate, do it with a certain amount of chutzpah. Don’t second guess choices once they’ve been made, paid for and installed

8. Renovate for the future Trends are for accessorizing, not for renovating. A rule of thumb for renovating is that doing a high-quality job in a classic style is exactly that: classic. If you invest in quality finishes now, you won’t regret it. Forget about being a slave to fashion-instead, think how dated those olive-green appliances look 20 years later. At the end of the day, there’s nothing more classic than a basic white refrigerator or a white pedestal sink.

9. Check in every day Your contractor will tell you that you only need to come by once a week. Don’t believe him or her! You need to do a site visit every day. Unless you have an incredibly trustworthy person to oversee your reno, you really don’t want to go on holiday or avoid the site. I’ve heard many people say “it’s perfect-my kitchen reno is happening while I’m away” and I cringe. You need to be there ALL THE TIME. Mistakes will happen, and you need to make sure you’re there to react to them. The longer that mistake goes unseen, the more expensive it will be to change it.

10. Have fun! It’s not all doom and gloom. At the end of the day, there’s nothing more rewarding than watching a space be transformed by good design decisions and great workmanship. Better still is the day when the work is done and you can enjoy the results in the peace and quiet of your new space.

Source: Canadian Home and Country

To view and search all Edmonton and area MLS listings visit me at: www.FindMyHouse.ca

As of this morning we have 3,200 single family homes listed on MLS in Edmonton proper. In the last thirty days there has been 439 sales. That gives us a listing to sales ratio of 7.29:1 which is slightly better than what we had just a few days ago.

It is however a far cry from the ratio of 4:1 that we need for a balanced market, and I therefor expect continued downward pressure on valuation.

To view and search all Edmonton and area MLS listed homes visit me at: www.FindMyHouse.ca

In line with the recent downward revisions of Canadian economic and job growth forecasts, CREA is updating its MLS® housing market forecast for the balance of 2008, and 2009. National home sales activity is now forecast to decrease by 12% to 461,200 units in 2008, and decrease by 3% in 2009. The number of new listings is forecast to decline further from the peak reached in the second quarter of 2008, with levels in 2009 on par with levels in 2007. Fewer new listings will stabilize the resale housing market in 2009. Average home prices will reach new heights in nearly all provinces in 2008, but declining activity in higher priced markets will hold the national average price stable this year compared to 2007. The national average price is forecast to ease by 2.1 per cent in 2009.

Canadian economic growth is forecast to start improving in the second half of 2009 before accelerating in 2010. Re-aligning housing market balance and improving home affordability will set the stage for an improving housing market in 2010.

“Canadians are definitely concerned by the economic news out of the US, and much of that news stems from distress in the US housing market. Canadians should realize that Canada’s economy and housing market are both in better shape. This means the downturn in Canadian consumer confidence will pass and when it does, housing demand will rebound, especially when they realize the window of opportunity to buy at reduced prices and at low interest rates will begin to narrow once economic growth shows signs of rebounding next year.”

A brief video broadcast about this housing market information featuring CREA President Calvin Lindberg and CREA Chief Economist Gregory Klump are available on www.crea.ca.