Edmonton Real Estate Blog

Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. It can also be a stressful experience if you don’t plan ahead by building a budget and saving prior to embarking upon homeownership.

Budgeting is a core ingredient that helps alleviate the stress associated with money issues that can sometimes arise if you purchase a home without knowing all of the associated costs – including down payment, closing expenses, ongoing maintenance, taxes and utilities.

The trouble is, many first-time homeowners fail to carefully think about their finances, plan a budget or set savings aside. And in this society of instant gratification, money problems can quickly escalate.

The key is to create a realistic budget based on your goals. Track your spending and make your dollars go further by sticking to your budget once it’s in place. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to invest in homeownership.

Start by listing your household income, then your household expenses, and review your spending habits. All of this can be done on a pad of paper or on a computer spreadsheet.

Keeping receipts for everything that you purchase will enable you to accurately keep track of where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis.

Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.

If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.

Budgeting provides you with the opportunity to re-evaluate your needs and wants. Do you really need the magazine subscriptions, the gym membership and all the other things you may spend money on each month? Although everyone needs some “me time” to wind down, could you not get that by taking a walk or reading a good book you borrowed from the library?

If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.

Following are three top tips to help you prepare for the purchase of your first home:

1. Set up a savings account. You can deposit a predetermined amount into this account each pay period that you will not touch unless it’s absolutely necessary. This will enable you to put money aside for a down payment and cover closing costs, as well as address ongoing homeownership expenses such as maintenance, taxes and utilities.

2. Save up for big-ticket items. As you accumulate money in your savings account, you will be able to also save for specific purchases to help furnish your home – avoiding the buy now, pay later mentality, which can have a negative impact on your credit when you’re seeking mortgage financing.

3. Surround yourself with a team of professionals. When you’re getting ready to make your first home purchase, enlist my services as a licensed mortgage professional and find a trusted real estate agent. Experts are invaluable to you as you set out on the road to homeownership because we help first-time buyers through the home purchase and financing processes every day. Experts can answer all of your questions and set your mind at ease. I have access to multiple lenders, and can help you get pre-approved for a mortgage so you know exactly what you can afford to spend on a home before you head out house hunting, while a real estate agent will be able to match your needs with a house you can afford. Both parties will negotiate on your behalf to ensure you get the best bang for your buck. And, best of all, these services are typically free. Experts will also be able to refer you to other reputable professionals you may need for your home purchase, including a real estate lawyer and home appraiser.

Source: Souchita Rattanarasy of Dominion Lending Centres Optimum (780) 932-2225

Edmonton, February 2, 2010: Single family homes sold through the Edmonton Multiple Listing Service® System sold on average for the same amount in January as at year-end while condominium prices dipped 2%. Month-to-month sales slowed by 6.8% as compared to December but the number of new listings in January doubled the December numbers. 

The average* residential price was $314,783 for January, down 1.4% from last month and down just 0.7% from a year ago. Single family home prices on average were stable increasing minutely from $366,761 in December to $367,747 in January. Condominium prices dipped just 2% in the month from $244,174 to $239,006. Duplex and rowhouse prices were up 1.5% to $300,563.

“There will be month-to-month fluctuations in prices for all types of properties,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “We expect that the local market will continue to be robust and prices will trend upwards through the year.”

Compared to December, housing sales were down in January with 524 single family sales and 288 condominium sales. Total residential sales were 884 units – 154 ahead of last January. There were 2,199 residential listings added during January resulting in a 40% sales-to-listing ratio and a month-end inventory of 4,864 homes. The average days-on-market was 57 days. Total sales (including residential, commercial and rural properties) in January were valued at $315 million (up 19% from last year).

“While the low prices may have motivated some buyers, the continuing low interest rates are probably a bigger factor for first time and repeat buyers,” said Westergard. “The inventory increase shows that current owners are poised to enter the market and to offer their homes for sale. Buyers and sellers should consult their REALTOR® to work out an appropriate strategy for their situation.”

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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

It is interesting what people know – ‘inside people’ that is.  This weekend I started working with a buyer that I had not worked with before.  During the time we spent together I asked her why she was looking to buy a home at this time.  Basically what she said to me was because of working at Alberta Treasury Branch she is aware what is going to be happening to interst rates and their forecast of rising prices this year.  She felt that she needs to buy now before prices and interest rates go up.

As of this morning there are 1,419 active single family dwellings for sale in Edmonton proper.  In the last 30 days we have had only 380 sales.  Again the sales were slow but expected to have a seasonal slow down in January.  However that give us a listing to sales ration of 3.73:1, which is a drop from last weeks number of 4:32:1, and below the 4:1 ratio that we need for a neutral market.

This ratio would support the fact that we are going to start seeing upward pressure on valuations as long as that ratio stays below that 4:1 ratio.

So if you are a first time buyer please don’t wait, we know that valuations are going to go up and that interest rates are going to go up.  Also, if you are thinking about moving to a larger and more expensive home you want to sell and buy right away before valuations go up.  The reason for that can best be explained in this example:  Let’s just assume that your current home is worth $300,000 and the next home you will buy will be valued at $500,000.  If the market were to rise 10% then your home would go up $30,000, but the home you would be buying will have gone up $50,000.  Waiting to get a higher selling price will actually cost you $20,000.  So make the move now before valuations go up, and now while there is limited competition to sell your home.

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

Team Leading Edge… Leading the way with extraordinary service

LAS VEGAS, Jan. 19 – A survey of consumers and builders, conducted in 2009 by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute, has yielded a new round of data revealing the housing preferences of the 55+ consumer. This analysis of data – the third in a series – compared the preferences of the 55-to-64 year old age group to those of the 65+ group.

The data uncovered a strong similarity in housing preferences between the two groups, with a few exceptions. The younger age group showed more interest in technology-heavy features, while the older group expressed a stronger preference for a single-story floor plan or one with a first-floor master bedroom, and a variety of universal design features.

One striking difference, according to John Migliaccio, director of research at MetLife’s Mature Market Institute, related to the desire for home services and community services.

“Very telling, said Migliaccio, “is that the younger group of mature consumers reported enthusiastically that they want services like home maintenance and repair as part of their next home purchase, along with services typically connected to older homeowners, such as housekeeping, onsite health care and transportation,” noted Migliaccio.

According to Migliaccio, all of the aforementioned were ranked higher than the desire for organized social activities – a surprise, inasmuch as social activities and amenities have been thought to be valued quite highly by this group. This finding, he said, supports an emerging trend among builders to look for ways to partner with providers of such services to the residents of their active adult/lifestyle communities.

According to Mike McGowan, a 50+ builder from Binghamton, N.Y. and chair of NAHB’s 50+ Housing Council, “Most buyers in this market are looking for an easy-living lifestyle. They would like access to services that will free up their time from maintenance both inside and outside their homes. This data tells builders that the homes we build for older active adults will remain attractive to the consumers who will be entering that market for the foreseeable future.”

Paul Emrath, NAHB’s vice president for survey and housing policy research, pointed out that the share of households that will want lower-maintenance housing is large, and growing larger as Baby Boomers age into that segment of the market. He cautioned that the current financial situation has led to sharply decreased construction of communities that serve the mature market. Without a change in the availability of capital for development and construction, there could well be a shortage of such housing when it is most needed.

For more information on the MetLife/NAHB research, including the first two reports on the age group and consumer preferences, visit: nahb.org.

Source: HGTVpro.com

It can difficult to determine or predict when interest will go up.  But a survey done by MSN money came up with these results.  These are of course the opinion of people responding to a questionnaire on a website, and has no real scientific proof of when interest rates will go up.

• 1. Spring   17%
• 2. Summer  28%
• 3. Fall  36%
• 4. Not sure  19%

5284 responses, not scientifically valid, results updated every minute.

Homebuyers want smaller houses and they are willing to strip some of yesterday’s most popular rooms-such as home theatres-from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show here this week.

“This is a traumatic time in (the United States) and the future isn’t something we’re 100 per cent sure about now either. What’s left? The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill.

Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for homebuilders is “finding the balance between what buyers want and the price point.”

For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with claw foot tubs and small spaces such as wine grottos are design features that will resonate today, she said.

“What we’re hearing is ‘harvest’ as a home theme-the feeling of Thanksgiving. It’s all about family togetherness-casual living, entertaining and flexible spaces,” Lavender said.

Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of homebuyer preferences, said there are 10 “must” features in new homes:

1. Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them-spend them in the kitchen,” McCune said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.

2. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.

3. Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theatre may also be headed for the scrap heap, a casualty of the “shift from boom to correction,” Cardis said.

4. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.

5. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.

6. Ceiling fans.

7. Master suite soaker tubs. Whirlpools are still desirable for many home buyers, Cardis said, but “they clearly went down a notch,” in the latest survey. Oversize showers with seating areas are also moving up in popularity.

8. Stone and brick exteriors. Stucco and vinyl don’t make the cut.

9. Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

10. Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories, Cardis said.

Source: Steve Kerch of Marktwatch (Yourhome.ca)

Hello everyone,

I am back from the holiday from hell and ready to get back to work.  By the way just a hint never loose your wallet with all your bank cards and credit cards in China.

I see that since I have been gone the market has really stabilized.  As of this afternoon there are 1,409 single family homes listed in Edmonton proper.  That is a slight drop from it was before I left on my holiday.  However the number that has dropped the most significantly is the number of sales which dropped to 326 in the last 30 days.

That would give us a listing to sales ratio of 4.32:1 the highest ratio that we have seen in almost a year.  Normally with that kind of ratio I would expect a downward pressure on house valuations.  However we do have to take into considertation the time of year we are in right now.

If this number doesn’t improve by the middle of February then I will start to get concern about valuations dropping.  But with the the threat of interest rates going up this year I think that we will start seeing people come off the fence and start buying again.

So lets see what the numbers start to look like by the middle of February before we get excited one way or another.

Custom-engineered solariums have an average cost of $40,000 to $130,000. You can try to build one yourself, but it’s not “a quick-fix weekend project.”

Solariums are custom-built rooms that provide owners with a view throughout the year

What if the biggest window in your house was a roof — a dazzling geometric framework that offered you a front-row seat when stars fell, meteors blinked or the moon eclipsed? And when the next Alberta storm unleashes its fury, you would have a panoramic view from the comfortable warmth of your own home.

Solariums are a resplendent winter sanctuary, and the ultimate fantasy for sun lovers, gardening aficionados and nature enthusiasts — all of whom seek solace in a custom-built room with a view.

The winter months are the most popular time of year for homeowners to think solarium. Just ask engineer Andy Banack, owner and president of Edmonton’s Apollo Sunrooms Inc. Banack says a good first step for potential buyers is to understand the riddle of how a sunroom and a solarium are the same, yet different.

“The key to understanding the difference between a solarium and a sunroom is the roofing. A sunroom is any room with an abundance of glass to allow sunlight in. A solarium is a sunroom, but it’s a specialized sunroom because it has a glass roof enclosure.”

Although Banack will demolish walls and furbish fresh foundations to kick-start your renovation, he says that homes best suited for solariums are those with uncomplicated roof lines. Capable of building any size solarium, Banack adds that it’s a misconception to believe solariums must ultimately “face south.”

“What is more important than facing south is how a solarium attaches and matches architecturally to your home,” says Banack. “Our goal is to make it look as though this addition has always been part of your house. And some clients want them facing west, others east. In the end, the best location to build a solarium is the area that offers the best view, while allowing continuity through the rooms of your house.”

While Banack’s top-of-the-line, custom-engineered solariums have an average cost of $40,000 to $130,000, some consumers prefer the do-it-yourself dollar savings of building their own. With average costs of $10,000 to $15,000 and up, solarium kits are a popular alternative for acreage owners, rural denizens and those with professional building experience.

Paul Doerksen, owner and manager of Ideal Sundecks, says a quality Canadian kit product should respect three things: snow load (the weight of snow on the roof area); wind load (wind pressure against the walls); and wind lift (wind pressure lifting the roof area). Doerksen cautions buyers that different kits are designed for different climates.

“Because snow loads differ from region to region, some kits are manufactured for different climates and are not conducive to Alberta weather. Banff, for example, has a snow load of

120 pounds per square foot while Edmonton is

25 pounds per square foot,” explains Doerksen. “So purchasing a product designed for Florida may not work in Edmonton.”

Although solariums can be built by anyone, with an average cost savings more than 25 per cent, Doerksen doesn’t recommend it for everyone. Because “90 per cent of solarium leakage is instalment related,” Doerksen says that practising due diligence sometimes means hiring a qualified installer to assemble your kit.

“These are not a quick-fix weekend project,” warns Doerksen. “People have to determine if they are handy enough to measure, cut and erect a structure and have it perform in the Alberta climate with the snow loads. With my company, the benefit of professional installation is a full warranty that includes the installation itself.”

Retired couple Mike and Betty Gibbins didn’t want a do-it-yourself solarium. Instead, they opted for a custom-engineered job and a unique protective glass that blocks 90 per cent of the sun’s ultraviolet light. Keeping out dangerous UV rays, “Conservaglass” coatings retain heat in the winter, while reflecting heat excess each summer.

The Gibbins’ cactus plants like it, too.

“We built our solarium for two reasons. One is that we wanted to open the house up because the dining room was cramped. The other reason was because we collect plants and this is a nice place for them,” says Gibbins.

“We have about 250 cactus and 150 related cactus succulents. As members of the Cactus and Succulent Society of Alberta, we see this as a great place to hold cactus house parties. We’ve had three so far.”

During the day, if it’s really cold outside, Gibbins says he might use a fan booster to increase heat flow to the room. But as temperatures softly chill at night, the cacti thrive.

“It cools at night and this is nice for the plants because they like cool nights,” notes Gibbins.

How easy is it to change solarium infrastructure into a greenhouse? To change any solarium into a greenhouse, just add plants, says Banack.

To protect your floor and foundation from water spillage, however, he suggests incorporating a tile or concrete floor that’s been sealed and is permeable.

“We get a lot of people who like plants and we’ve built three solariums that are orchid houses,” says Banack. “And one of the reasons is that orchids do quite well in this environment.

“But rose trees, banana trees, jade trees and even orange trees also do very well. You name it. I’ve seen two orange trees in our solariums now. The oranges are small, but they do turn orange.”

Realtor Peter Schalin says a solarium absolutely increases the resale value of your home.

“Generally I’ll add $10,000 to $40,000, depending on the array of options included. But keep in mind, there are people who build solariums bigger than most homes.”

Banack’s advice to future owners is that the sky is the limit. “If you have preconceived notions limiting you, get rid of them. Think about what you want, not what you think you can get. We have clients and their home backs onto the North Saskatchewan valley. They watch deer from the comfort of their easy chairs.”

Banack warms to his favourite topic: “That’s the beauty of solariums. You can take a vacation and you never left home.”

By Linda Alberta, Freelance

Breakthroughs in technology mean homeowners in older houses can now enjoy the same advantages in home automation formerly available only in new homes.

The heart of home automation is the ability for a homeowner to control or monitor, sometimes remotely, electrical devices in a home. Practical applications include the control of lighting, draperies, audio systems, the monitoring of home security and the adjustment of heating, ventilation and air-conditioning.

It used to be that only new homes being built were connected digital homes, sometimes referred to as Smart Homes. The systems were typically controlled and interconnected by wire; installation was easy to do only before the drywall was put up in the construction of new homes. Retrofitting an existing house was theoretically possible, but the added labour drove up costs.

“The availability of wireless systems has made a big difference when updating and retrofitting older, frequently heritage, structures,” says Paul Titterton, general manager of Lenius Osborne, an electrical contractor who specializes in home automation systems. “While you just can’t beat wire in some applications, wireless systems are usually cheaper. Jobs that now cost $10,000 used to be in the triple digits.”

Home automation systems are popular with security-minded people. Titterton recalls one client who installed a home system with cameras so he could make sure his 17 year-old son didn’t drive his Porsche when he wasn’t home.

Owners have the ability to monitor and control their home system or view images from video cameras, from anywhere in the world via a personal computer or iPhone over the Internet. Sensors can detect movement and alert a user by phone or an e-mail message. “With these systems, you can turn off your house lights from beside your bed or from anywhere in the world,” says Titterton.

Systems can be programmed to do just about anything, he says. Sensors can warn of fire, water leaks and sudden temperature drops.

A hard-of-hearing owner can program the system to flash lights in the house instead of having an audio alarm to warn of any impending emergency. It can turn down the audio or shut off the home theatre automatically to warn of a fire or burglary in progress.

People with pre-existing medical conditions, such as a patient hooked up to a portable EKG machine, can program the home system to monitor signals and automatically summon medical personnel if pre-established limits are exceeded. Patients can also carry a panic button with them in case of emergency.

The applications run from life-saving to lifestyle.

“The whole industry is moving to automation,” says Nigel Brown, co-owner of Ruffel & Brown, a window-covering store. “Twenty-five years ago you had to get out of the car to open the garage door. Now there is a greater expectation … that pretty much anything can be automated.”

Curtains, window blinds and shades all can be tied into smart homes. With a touch of a button, curtains close, lights dim, the TV turns on and a DVD loads in a home-theatre system. Window coverings are the latest items to join programmable indoor and outdoor lights to give a house a “lived-in” look, even if owners are away.

A remotely controlled 10-foot motorized track for a curtain, wired into a home

automation system, can cost $1,000 to $1,500. Stand-alone systems, some solar-powered, are also available. Smaller blinds and shades in difficult-to-reach spots with no existing wiring can be powered by batteries.

Brown says sun sensors let you program drapes to close either at night or in strong sunlight.

Smart Home systems are ideal for video and music lovers. By connecting an iPod dock to the system by hardwire, tunes can be played in any room of the house or even outside. A central hard-drive and signal distribution allows video to be viewed on multiple televisions. If somebody comes to the door while a television program is in progress, an image from the front door camera can be displayed on the television.

“Just about anything can be integratable (into the system),” says Titterton. “It doesn’t take more than programming for anything with an integrated circuit.”

Victoria Times Colonist

“Less is only more where more is no good.”

Every so often, someone comes along who just makes you question every purchasing decision you’ve ever made. Like Miami-based designer Marianne Cusato, whose home design philosophy embodies living better with less.

Working with a team of designers, Cusato created the Katrina Cottages: attractive, affordable homes between 300 and 500 square feet. That’s not a typo. I don’t know how big your place is, but my kitchen and eating area is around 300 square feet, and I still trip over my dogs.

Her team’s task was to design an alternative to the FEMA trailers that housed those left homeless after hurricane Katrina. The Katrina Cottages are well-designed and apple-pie cute to boot. They won the Smithsonian Institution’s National People’s Design Award in 2006.

Of course, Cusato’s not the first build-better-not-bigger disciple. Sarah Susanka, author of The Not So Big House, also reveres architectural quality over quantity.

But regardless of whether your home is big or small, its design — far more than its size — determines how well you live. Bigger isn’t always better — though it can be.

Here are some ways Cusato says we can work around common design flaws in newer homes that may negatively affect how we enjoy our spaces.

– Mistake: Dominant garages. As people began to rely more on cars for daily living, garages started taking over the front of the house. Next, people retreated further inside their homes and became less connected with their neighbours and communities.

– Fix: Enhance your street connection. Consider how your home meets the street. It should pull you in. Punch up your home’s curb appeal. Focus on the front door and your porch if you have one. Make the path to your door say, “Welcome.”

– Mistake: Focus on size. To max out square footage, many builders have opted for bigger houses at the expense of high end finishes.

– Fix: Upgrade door handles and knobs that feel flimsy for ones that look and feel solid. Similarly, trade hollow core doors for solid ones.

– Mistake: Tacky add-ons. Among Cusato’s many peeves are tacked on architectural details that are just for looks. Specifically, she’d like to abolish fake shutters and three-foot porches.

– Fix: Use it or lose it. “A home should have nothing gratuitous,” says Cusato. “Either the shutters work or they go.” Even her 300-square-foot cottage has an eight-foot-deep front porch (not included in the square footage). “Keep it authentic.” Now think about that while I go take the fake shutters off my garage.

Marni Jameson, Calgary Herald