Edmonton Real Estate Blog

Great news if you are going to be selling your home as it doesn’t look like values are going to be dropping much further if any at all.  Bad news if you have been thinking of buying but want to wait a little longer.

As of this morning there were 2,454 residential single family dwelling listings in Edmonton proper.  In the past 30 days we have had 593 single family dwellings sold.  An increase over the last time I checked it.  This brings the listings to sales ratio now down to 4.14:1.  This is also an improvement over last week.

If this ration drops under 4:1 then we can expect valuations to start rising.

So if you have been thinking about buying this year get on the band wagon now…

Don’t have your downpayment all saved up yet… don’t wait contact Dominion Lending Optimum at www.dlconline.ca  to contact them and ask about their 100% financing options.

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

Also visit www.FindMyHouse.ca for your chance to enter a free draw for a $5,000 travel certificate.

If you’ve been thinking about buying a revenue property, given the current lending environment and the slower real estate market – which has shifted to a buyers’ market – there are several reasons why now may be an ideal time.

Interest rates have also been dropping to historic lows as of late, which should help you more easily obtain financing for your revenue property.

And although the real estate market slowdown has seen prices drop and interest rates dip, rental income has not wavered – making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

During a buyers’ market in the real estate cycle, sellers are far more flexible and willing to work with you because they are most likely not receiving much traffic through their doors, let alone being bogged down with multiple offers. And in cases where property has been on the market for quite some time, negotiating a sales price should offer you even more added flexibility.

And when it comes to choosing a revenue property that meets your needs, now is also a great time because the inventory of available properties is plentiful. You will have multiple properties to look at and not be rushed into making a hasty decision with a long list of other buyers ready to make a purchase.

Another bonus is that, should you wish to make changes to your revenue property, tradesmen who do renovations aren’t as busy as they used to be. As a result, these tradesmen are now answering their phones on the first ring, showing up when they say they will and offering much more competitive pricing.

In order to take advantage of this opportunity, the key is to work with me – a mortgage professional who is an expert in this niche and can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decisions and feel at ease throughout each purchase.

I offer an invaluable service to real estate investors because, if the mortgages on your investment properties are not set up properly from the on-set of each venture, you will not be able to get future financing – a necessity for continuing to build your portfolio of revenue properties.

Because I’m an expert in dealing with real estate investors, I know that a portfolio approach must be taken to ensure future financing for those looking to purchase revenue properties. I will ask you in detail about your specific property investment goals and develop a game plan for the next five or 10 years based on these goals.

I can work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals and the steps involved to get you there.
Keep in mind, however, we should go over your plan at least annually to ensure you’re still on track.

A team of expertsBecause I specialize in helping clients acquire revenue property, I also partner with other investment property experts, including real estate agents, lawyers, accountants, insurance agents and contractors, to name a few, which enables me to provide valuable information to you through this knowledge network I have created.

By forming ties with other trusted experts, I am able to provide you with a one-stop shop for meeting all of your real estate investment needs.

I can also help direct you to other organizations that will offer you further insight into your real estate investment needs. If you join groups such as the Real Estate Investment Network (REIN) or even a local Rental Owners and Managers Society (ROMS), for instance, you can receive a wealth of added knowledge catered to your revenue property needs.

While REIN can provide market insight and investing tips through years of experience, ROMS helps with credit checks for potential tenants, keeps you abreast of changes to the Residential Tenancy Act and other topics/concerns often faced by landlords.As always, if you want to talk about revenue property purchases, I’m here to help

Sourc: Dominion Lending Centres – Optimum

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

Also for a chance to enter a free draw for a $5,000 travel certificate visit me at www.FindMyHouse.ca

The January 27th federal budget was chock full of goodies for homeowners and first-time homebuyers. Below are some highlights from the budget that you may find useful.

Home Renovation CreditIf you’ve been thinking about doing some home renovations, a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010 that was proposed in the new budget may help in your decision to invest in improvements to your home.

The credit will apply to expenditures in excess of $1,000, but not more than $10,000, for the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. The credit will, however, not be available in respect of expenditures for work performed or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28, 2009. Individuals may claim this credit (including expenditures made in January 2010) in their 2009 income tax returns.

Eligibility for the HRTC will be family-based. For this purpose, a family will generally be considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner, and their children who were under the age of 18 throughout 2009.
Two or more families that share ownership of an eligible dwelling will each be eligible for their own credit. Each family’s credit will be determined by their respective eligible expenditures in excess of $1,000, but not more than $10,000.

Individuals will be able to claim the HRTC on eligible expenditures made in respect of dwellings that are eligible at any time after January 27, 2009 and before February 1, 2010 to be their principal residence or that of one or more of their other family members under the existing tax law.

In general, a housing unit is considered to be eligible to be an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, the individual’s spouse or common-law partner or their children.
In the case of condominiums and co-operative housing corporations, the credit will be available for eligible expenditures incurred to renovate the unit that is eligible to be the individual’s principal residence as well as the individual’s share of the cost of eligible expenditures incurred in respect of common areas.

Individuals who earn business or rental income from part of their principal residence will be allowed to claim the credit for the full amount of expenditures made in respect of the personal-use areas of the residence. For expenditures made in respect of common areas or that benefit the housing unit as a whole (such as re-shingling a roof), the administrative practices ordinarily followed by the Canada Revenue Agency (CRA) to determine how business or rental income and expenditures are allocated between personal use and income-earning use will apply in establishing the amount qualifying for the credit.

Expenditures will qualify for the HRTC if they are incurred in relation to a renovation or alteration of an eligible dwelling (including land that forms part of the eligible dwelling) provided that the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits.

Expenditures will not be eligible if the related goods or services are provided by a person not dealing at arm’s length with the individual, unless that person is registered for Goods and Services Tax/Harmonized Sales Tax purposes under the Excise Tax Act. Any eligible expenditure claimed for the HRTC must be supported by receipts.
ecoENERGY Retrofit – Homes GrantsThe new budget also proposes an expanded ecoENERGY Retrofit – Homes program, and Natural Resources Canada is currently working to finalize the details.

The new expanded program includes a $300 million increase over two years for support to property owners looking to make their homes more energy efficient. It is estimated that additional funds will extend the reach of the current program to an additional 200,000 homeowners.

Under the current program, ecoENERGY Retrofit – Homes provides home and property owners with grants of up to $5,000 to offset the cost of making energy-efficient improvements. ecoENERGY Retrofit grants apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace.
Only homes that have undergone a residential energy efficiency assessment by an energy advisor certified by Natural Resources Canada will be eligible for grants.

Detached homes, row housing, duplexes, triplexes and mobile homes on permanent foundations and some small apartment buildings of three storeys or less may qualify for ecoENERGY Retrofit – Homes grants.

The ecoENERGY Retrofit grant is based on the type and number of energy improvements that have been made and how much the efficiency of the home has been improved. The grant is based on how effective that upgrade is in saving energy, not on the cost of the upgrade.
The maximum grant one can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000. The average grant is expected to be more than $1,000 and will yield an average 25% reduction in energy use and costs.

RRSP Home Buyers’ Plan IncreaseThe budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.
Tax Credit for First-Time HomebuyersAlso proposed in the new budget is a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence no later than one year after its acquisition.

Source:

Dominion Lending Centres Optimum
Great Advice, Best Rates and Quick Approvals
Call: 780-452-9101

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

Also for your chance to enter a free draw for a $5,000 travel certificate visit www.FindMyHouse.ca

National housing starts reached 211,056 units in 2008, a decrease from 228,343 in 2007, according to CMHC’s first quarter Housing Market Outlook, Canada Edition report. Starts are expected to be about 160,250 for 2009 and about 163,350 for 2010. “The new home market is moderating due to a number of key factors,” said Bob Dugan, Chief Economist for CMHC. “The economic downturn will result in a decrease in demand for home ownership leading to a decline in housing starts and existing home sales in 2009. Housing market activity will begin to strengthen as the Canadian economy rebounds in 2010 and the level of housing starts over the forecast period will be more in line with demographic fundamentals.”

Existing home sales, as measured by the MLS®, are expected to decline 14.6% during 2009 to 370,500 units. In 2010 the level of MLS® sales is expected to increase by 9.3% to 405,000 units. The average MLS® price is also expected to decrease over the course of 2009. Average prices nationally are forecast to be $287,900 for 2009, a decline of 5.2%, while 2010 will see little change from 2009 average prices.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

Source: Realtors Assc. of Edmonton

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

To enter a free draw for a $5,000 travel draw visit me at http://www.findmyhouse.ca/

Very nice 4 bedroom bi-level home with a fully finished basement, in-law suite, ceramic and hardwood floors, large pie shaped lot a must see RV parking. Asking $359,900

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

Also visit www.FindMyHouse.ca to enter the free draw for a $5,000 travel certificate.

As of today Feb. 13, 2009 there are 2,514 single family homes listed in Edmonton proper. That is not much different than we have been for the last couple of months.

However what has changed is an increase in sales in the last 30 with 476 sales. That gives up a listing/sales ratio of 5.28:1 which is the lowest ratio since the market started it’s nose dive in valuations back in mid-2007.

And that is getting very close to the 4:1 that we require for the market to stabilize. Considering that last month we were at over 10:1 this is great news and could be indicating that we are close to the market hitting the bottom.

So if you have been thinking of waiting to buy that next home you might want to start looking now.

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

Also visit www.FindMyHouse.ca to enter a free draw for a $5,000 travel certificate.

The City of Edmonton has taken another big step towards making more affordable housing available by allowing more secondary suites in mature neighbourhoods.

“The City is taking action on this issue, giving more homeowners the option of building a suite in their basement or elsewhere on their property,” says Peter Ohm, Manager, Land Use Policy Planning Branch. “We are also protecting renters by ensuring secondary suites are up to proper building and fire codes.”

New suites will provide much-needed affordable rental housing and can help first time buyers or empty nesters pay their mortgages. Garden suites will also now be allowed at the discretion of the City’s development authority, but only in specific locations, and with conditions that ensure new rental units do not conflict with the integrity of neighbourhoods. The City also wants homeowners with illegal suites to upgrade their suites to meet building and fire codes now that zoning regulations allow substantially more secondary suites to exist legally.

Homeowners can get help building secondary suites through the Secondary Suites Grant Program. The program also provides funding to homeowners who have existing, illegal secondary suites to renovate the suites to meet fire and building codes, provided their properties are able to meet zoning regulations. In exchange for funding, homeowners agree to rent the suite to modest income tenants at 85% of the median market rent for five years.

These changes come after extensive public consultation and will increase the number of homes where secondary suites would be allowed by an estimated 270%. The City has also recently allowed garage suites in more locations.

As part of the bylaw, City Council requested city administration provide a progress report on the program to be presented to council in early 2010.

REALTORS® support these changes as they provide a low cost and expedient method of providing affordable housing throughout the City.

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

Also visit http://www.findmyhouse.ca/ to enter the free draw for a $5,000 travel gift certficate.

Edmonton, February 3, 2009: Residential sales in January are always slow as buyers recover from their holiday excesses and stay bundled up from the cold. January sales were slow at the beginning of the month but picked up steam as the days grew longer. REALTORS® sold 730 residential properties in January compared to 608 in December (sales up 20%). Sales prices were also up in all categories as compared to the previous month.

“Nobody rings a bell when prices hit the bottom,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “The bottom is evident only after several months of rising prices. One month does not make a trend but the market is certainly welcoming to home buyers.” He pointed to the lowest interest rates in years, the large selection of homes available and recently announced economic stimulus packages as reasons for the increasing market activity. The amount of RRSP savings that can be applied to a first-time home purchase was increased from $20,000 to $25,000 and a tax rebate for home renovation expenses were announced in the recent federal budget. Both measures will encourage home buyers.

The average* price of a single family home in January was $352,689 – up a quarter of a percent as compared to December. Condo prices were up 1.8% to $238,535 and duplex/rowhouses sold on average for $299,222 (a 2.2% price increase). Total residential sales through the MLS® for the month were $231 million – down 43% from the previous January.

Listing activity also increased in January. There were 2,443 residential properties listed in January – an 85% increase over December listings. With 730 residential sales the sales-to-listing ratio was just 30%. At the end of January there were 6,573 properties available on the residential MLS®. At current sales rates this is a nine month supply. Time to sell was up from 65 days-on-market in December to 68 days in January.

“The housing market changes every day and consumers need to work with a REALTOR® who can advise on pricing, sales and negotiation strategies,” said Ponde. “REALTORS® are the only professionals with current sales prices (as compared to asking prices) and can do up-to-date comparisons for properties similar to the one you are attempting to buy or sell.”

Source: Realtors Association of Edmonton