Edmonton Real Estate Blog

Perfect starter home or fixer upper. 1249 sq.ft. 4 bedroom 2 storey home on a large pie shaped lot with apple trees. Situated in a cozy cul-de-sac. There is a roughed in fireplace in the living room. There is a huge master bedroom with wall to wall closet. The basement is partially finised and has a 4th bedroom and family room framed and drywalled. Seller is open to all offers.

With today’s interest rates being so low and the downward pressure on valuations right now I think this is an ideal time to buy before prices go back up as anticipated in the spring time.

To check out today’s mortgage interest rates or would like to get pre-approved for a mortgage check out www.edmontonmortgagesource.com

April 14, 2011 – Well just when you thought maybe spring was here we are being hit with a snow storm this morning with a forecast with between 5 – 10 cm of snow.  I think we might just skip spring and move onto summer.

The spring marketplace continues to be strong.  As of this morning there are 2,551 single family dwelling for sale in Edmonton proper. This is a pretty typical inventory level for this time of year.  In the previous 30 days there were 661 single family homes sold in Edmonton proper.

This would give us a listing to sales ratio of 3.85:1 just slightly below the 4:1 ratio that we require for a neutral or balanced market. As long as this ratio stays below the 4:1 market expect valuations to continue to have upward pressure to increase.

I am experiencing this first hand as I was trying to sell a property to one of my buyers earlier this week and there were 6 offers written on the property before we could present. Ultimately we had to write an unconditional offer $12,000 over the list price in order to acquire the property.

This is our new reality again. Really good properties listed at a good price are selling within 24 – 48 hours and don’t be surprised to be in a multiple offer situation.

The average list price of a single family dwelling in Edmonton proper is $398,717 and the average selling price in the last 30 days was $386,028. The average number of days on market was 43 days.

Source: Realtors Association of Edmonton

Motivated by a strong Canadian dollar and what they perceive as bargain U.S. home prices, as many as 1 in 5 Canadians say they’d consider purchasing property in the U.S. 　

A new survey for BMO Bank of Montreal and conducted by Leger Marketing reveals that as home prices have dropped in the regions of the U.S. which are traditional destinations for Canadian snowbirds, interest in purchasing U.S. property has risen. 　

Want to know which Canadians to target? 　Regionally, those in Alberta (31 percent), British Columbia (28 per cent), and the Prairie Provinces (27 per cent) are most interested buying property in the U.S.　

Bank of Montreal suggests that Canadians wanting to purchase in the United States should consider the questions shown below. 　While some of these are lifestyle questions which the prospects will have to answer for themselves, to answer other questions, a REALTOR’s input will be valuable. 　If you want to tap into this market, make sure you are knowledgeable and can refer prospects to tax advisors and others as needed. 　

Questions for Canadians Considering Purchasing in the United States:

• What states and neighborhoods fit your needs?
• Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.　
• Consider flights and airlines, if you can fly there direct, and the cost.　
• Research and even ask locals about the community to ensure it suits your needs.　
• What to consider when financing the purchase with a U.S. based financial institution?
• It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.　
• What mortgage money is available to international buyers?
• Furthermore, understand the impact of penalties and withholding taxes if and when you decide to sell your home in the U.S.　
• Do you understand the status of the property?
• Understand the terms of the property. For instance, is it labeled as short-sale or on foreclosure?　
• The status of the property can have a variety of implications. Be sure to consult an expert before making any buying decisions.　
• How will you use your property?
• Is your purchase for investment or lifestyle purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.　
• If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in two countries, so make sure you speak to a taxation specialist.　
• How much time will you spend south of the border? Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.　

I am busy sending all the people in my “A” group St.Patrick’s Day card with a lottery ticket.  My the luck of the Irish be with them.

Canadian new home prices rose more than expected in January and hit a record high, but the pace of growth was the slowest since March, adding to evidence that the housing sector is starting to cool.

But that was nation wide and things are a little different here in Alberta. There is just too much going on in the oil and gas industry that going to keep the Alberta economy very strong.

So I do expect prices of homes but new and resale to rise during the balance of this year and next year as well.

It is looking like the Edmonton real estate market is improving. As of this morning there were 2,188 single family homes for sale in Edmonton proper. More importantly there has been 557 sales in the previous 30 days. That gives us a lsting to sales ratio of 3.93:1 which is basically at the level we need for the market the stabilize and become neutral. With this kind of ratio we can expect prices valuations to stop falling and normalize.

I anticipate as we get more along into our spring marketplace that we might see this ratio drop and if we do expect valuations to start to rise again. So if you are thinking of buying to hesitate do it now, especially before the mortgage rule changes on March 18th.

After selling 2 homes in the last 7 days I am really starting to feel that the Edmonton Real Estate market is starting to pick up.

This could be do to the fact that many people are trying to buy before the March 18th deadline for the change in mortgage rules. But I also have to attribute it to a all the economic developement that is starting to happen in Edmonton now and scheduled for the year 2012.

The Edmonton rea estate market should be booming again and I see prices increasing again in the incoming 18 months as well as I expect interest rates to increase and we see economic recovery happening and we see the Bank of Canada trying to curb any inflationary pressures by raising interest rates.

This make now the best time to buy for the next 2 years before prices in Emdonton go up and before interest rates also go up.

I am currently working with a buyer wanting to purchase in the Magrath Heights or MacTaggart area.  If you live in those area or know someone living in those areas thinking of selling please call me 780-995-6520