Edmonton Real Estate Blog

The REALTORS® Association of Edmonton released market housing statistics for the month of October based on sales through the Multiple Listing Service® in the Edmonton CMA. The all-residential average price in the Edmonton CMA is $337,599 as compared to $332,232 in October 2012, a +2.5% change. The median price for a home in Edmonton is up at $327,250 compared to $315,600 last October.

All-residential sales totalled 1,454 (adjusted for late reported sales, 1,346 reported) in October, a positive change of 15.6% from the same month last year when there were 1,258 residential sales. There were 888 (822) adjusted SFD sales, 449 (416) adjusted condo sales and 90 (83) adjusted duplex/rowhouse sales (reported sales in brackets).

“Total annual sales are the highest they have been for five years and we had the best October in five years as well,” said RAE President Darrell Cook. “There is a 74% sales-to-listing ratio which means that sellers have a better than usual expectation of selling their property. At the current level of sales there is adequate inventory (4,807) for 2.7 months which is lower than normal in this market. The youthful nature of our city (average age 36) and good job prospects means that the demand for housing remains high.”

The unemployment rate declined from 5.2% in August 2013 to 5.1% in September 2013. City of Edmonton economist John Rose states that; “These numbers demonstrate that Edmonton has become one of Canada’s most attractive locations for individuals seeking work.”

The average price for a single-family dwelling in October was $397,613 (up 2.5% Y/Y) and an average condo sold for $235,680 (up 2.1% Y/Y). The average price for a duplex/row house was $326,195 (up 5.2% Y/Y). Median prices for SFDs was $375,000, for condos $222,750 and for duplex/rowhouses, $318,900.

“The first time buyer or young person moving into this market will often choose a condo because of the lower price point,” said Cook. “About 60% of all condo sales are under $250,000 and that represents 17.6% of all residential sales. Condos priced over the average price of a SFD represent only 1.5% of total residential sales.” There were 584 SFDs sold for under $250,000 which is less than 4% of all residential sales.

The average days-on-market was 54, down from 60 days last year. For real estate advice or further explanation of the market conditions, consult a REALTOR®.

Source: Realtors Association of Edmonton

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Click here to view more info or call today to see in person! 780-634-8151

To View & Search All MLS Listed Houses for Sale Visit Us At:
www.EdmontonHomesforSale.biz

Serge Bourgoin
Senior Managing Partner
Team Leading Edge
RE/MAX ELITE
780-995-6520

To View & Search All MLS Listed Houses for Sale Visit Us At:
www.EdmontonHomesforSale.biz

Serge Bourgoin
Senior Managing Partner
Team Leading Edge
RE/MAX ELITE
780-995-6520

In real estate it is always location, location, location and this Rideau Park home has it. This bungalow offers almost 4,000 sq.ft of developed living space. Conveniently located close to schools, Southgate mall, Whitemud freeway, and LRT. How often are you going to find a large bungalow like this with 5 bedrooms, fully finished basement, 2 fireplaces, 2 family rooms, a games room area, large double garage, nice size back yard with a covered deck accessible from both the kitchen eating area, and sliding doors from the master bedroom bay window. Don’t miss out on everything this home has to offer. Back yard backs onto walking path. Hot water tank was replaced 1 year ago, and the stainless counter top stove, fridge and dishwasher were recently replaced. For more information visit realtors website.

Click here to view more info or call today to view in person! 780-634-8151

To View & Search All MLS Listed Houses for Sale Visit Us At:
www.EdmontonHomesforSale.biz

Serge Bourgoin
Senior Managing Partner
Team Leading Edge
RE/MAX ELITE
780-995-6520

n real estate it is always location, location, location and this Rideau Park home has it. This bungalow offers almost 4,000 sq.ft of developed living space. Conveniently located close to schools, Southgate mall, Whitemud freeway, and LRT. How often are you going to find a large bungalow like this with 5 bedrooms, fully finished basement, 2 fireplaces, 2 family rooms, a games room area, large double garage, nice size back yard with a covered deck accessible from both the kitchen eating area, and sliding doors from the master bedroom bay window. Don’t miss out on everything this home has to offer. Back yard backs onto walking path. Hot water tank was replaced 1 year ago, and the stainless counter top stove, fridge and dishwasher were recently replaced. For more information visit realtors website.

http://www.youtube.com/watch?v=X4fNAFq7lVE&feature=youtu.be

Click here to view more info or call today to see in person! 780-634-8151

To View & Search All MLS Listed Houses for Sale Visit Us At:
www.EdmontonHomesforSale.biz

Serge Bourgoin
Senior Managing Partner
Team Leading Edge
RE/MAX ELITE
780-995-6520

Rising mortgage rates are fuelling home sales. They also appear to be curbing price growth as buyers drive tougher bargains.

The number of existing homes that changed hands across the country last month rose 18.2 per cent from a year earlier, the Canadian Real Estate Association said Tuesday. September’s sales were slightly above the long-term average for that month, an indication that the market has fully recovered from the steep slump after Finance Minister Jim Flaherty tightened the mortgage insurance rules in the summer of 2012.

While sales were up just 0.8 per cent from August, the rise topped some economists’ expectations and marked the seventh consecutive month-to-month gain.

But many experts claim that the increase in mortgage rates that has occurred since the spring, and the prospect of higher rates down the road, is providing a sales boost that will prove to be temporary.

Mortgage rates are up about three-quarters of a percentage point since May, with five-year fixed rates having risen to 3.39 per cent from 2.64 per cent, according to Alyssa Richard, chief executive of RateHub.ca.

With buyers facing higher rates, the market could lose steam in the months ahead.

“We expect home resales to stabilize near the current levels, although some modest pullback may occur later this year or early next as payback for sales that may have been advanced during the rush to lock-in lower rates,” Royal Bank economist Robert Hogue said in a research note.

Greg Twinney, a senior executive at the e-book company Kobo, says mortgage rates played a large factor in his role to move his family from downtown Toronto to Caledon, north of Mississauga, this fall. He had been planning to move there some time in the next five years, but the combination of finding a property he liked and a lack of clarity over how much rates will rise spurred him to buy a house there last month.

“Given where interest rates are, you’re able to get in to a home now and lock in interest rates and know what you’re paying for the next five years and it’s affordable,” he said.

The banking regulator, the Office of the Superintendent of Financial Institutions, has long been considering tightening the country’s mortgage underwriting rules, and could still take action.

Canadian Imperial Bank of Commerce economist Benjamin Tal has said recently that he suspects the housing market is currently too strong for the government’s liking. But if the current momentum in sales does prove temporary, that could ease any fears that Mr. Flaherty might have.

Jim Murphy, the head of the Canadian Association of Accredited Mortgage Professionals, met with Mr. Flaherty last month, partly in an effort to present the association’s case that the market is in balance and no further tightening is required. “I think he’s comfortable with where the market’s at,” Mr. Murphy said Tuesday.

Much of the concern that policy makers have had about the housing market in recent years has stemmed from rising consumer debt levels and home prices.

While the average price of homes that changed hands over the Multiple Listing Service last month was up 8.8 per cent from a year earlier, to $385,906, that’s in large part because pricey cities, such as Toronto and Vancouver, were in the midst of steep sales declines a year ago.

The Teranet-National Bank home price index for September, released Tuesday, hadn’t budged from August. The index normally picks up 0.2 per cent from August to September as buyers return from summer vacations.

“Price behaviour seems to be at odds with the recent pickup in resale activity,” National Bank economist Marc Pinsonneault wrote in a research note. “It looks that households are willing to buy, but they are now bargaining harder on prices to compensate for higher mortgage rates.”

Toronto-Dominion Bank economist Diana Petramala pointed out that a rising stock of unsold condos is also weighing on price growth. “Prices were down in Montreal and Ottawa where a growing overhang of condos on the market is keeping prices low.”

Meanwhile, consumers who are wondering where mortgage rates will go next should look to Washington, says TD chief economist Craig Alexander.

Five-year fixed mortgage rates tend to follow the yields on five-year government of Canada bonds, because those influence banks’ funding costs. Canadian bond yields tend to mirror those in the U.S. because the market views the securities as alternatives to one another. Mortgage rates rose over the summer as bond yields rose, largely because of expectations that the U.S. Federal Reserve would soon begin tapering its quantitative easing program.

That hasn’t happened, and bond yields have edged down a bit recently as a result. But banks tend to change their mortgage rates only when they think yield changes will be relatively long-lasting, Mr. Alexander said.

“Over the entire course of next year, I expect the five-year yield to go from 2.05 to 2.55 per cent, so I think the balance of risks are that, in 2014, fixed mortgage rates will creep up a little bit,” he said.

Source: http://www.theglobeandmail.com

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The REALTORS® Association of Edmonton released market housing statistics for the year to date (YTD) including the month of September. The all-residential average price for the first three quarters of the year in the Edmonton CMA is $350,741 as compared to $340,090 in 2012. In September, the all-residential average was $352,057, up 5.4% from a year ago and inching up from $351,455 in the previous month.

Year-over-year sales were also up 19.4% with 1,466 (adjusted, 1,357 actual) all-residential sales in September. There were 13,691 residential sales in the Edmonton CMA in the first three quarters of 2013 as compared to just 12,876 sales at the same time last year.

“Our members report that the market is very active with many properties attracting multiple offers,” said President Darrell Cook. “The increases in the Alberta population are driving the market and because of the steady sales there are inventory shortages at the lower price ranges.”

There were 926 (adjusted, actual 857) single-family detached sales in September at an average price of $408,642 (up 3.9% Y/Y) as compared to 773 sales a year ago at an average price of $393,374. Condos sold on average in September for $243,655 (438 adjusted sales, 406 actual), up from $224,330 last September (up 8.6%). Duplex/row house sales were up with 79 (adjusted ,73 actual) sales, valued on average at $338,250 ($316,973 last year).

“Average sales prices are the highest they have been in five years,” said Cook. “Combined with the highest sales numbers since 2012, we have year-to-date residential sales values totaling $4.8 million. Strong market fundamentals, increasing population and the persistence of low mortgage rates have convinced many buyers that an investment in real estate is secure.”

The September sales-to-listing ratio of 65% was the result of 2,089 residential listings and 1,357 residential sales. The inventory of available homes on the Edmonton MLS® System was down from 5,557 units in August to 5,111 units in September. It took 54 days on average (up one) to sell a home in the Edmonton area. A REALTOR® has access to all the latest market data and effective marketing tools and is the best source of real estate advice for both buyers and sellers.

Source: Realtors Association of Edmonton

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz