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.

 The average* price of single family homes in the Edmonton area has hovered around the $350,000 mark for the first quarter of this year, reported the REALTORS® Association of Edmonton. At the beginning of January the average price for a SFD was $351,870. The price varied slightly and at the end of March the average SFD price was $349,716, up 0.7% from the previous month. Condo prices were a little more volatile but popped up 1.6% in March to $230,469, after a 5% drop in February. The average price of a duplex/rowhouse was $276,776.

“With price stability, low interest rates, spring weather and pent-up demand; it appears that REALTORS® are starting to get busy again,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Our offices are reporting an increase in buyer interest. Sales in March were up 28% from the previous month.”

Residential sales through the Multiple Listing Service® in March totalled 1,380 units. Total MLS® sales (including commercial and rural sales) were 1,513 units. This is a 30% increase over the previous month. Total residential sales for the first quarter were 3,185 units and total MLS® sales were 3,471 with a YTD value of $1.1 billion.

There were 2,891 residential listings in March (down 31.7% from last March) resulting in a month end inventory of 7,476 residential properties (down from 9,464 in March 2008). The sales-to-listing ratio was 48% and average days-on-market was 56 days (down five from February).

 “The market is once again operating in a normal fashion with typical seasonal fluctuations,” said Ponde. “REALTORS® are prepared with daily statistics and market knowledge to help clients understand the market fluctuations and advise them on pricing and marketing strategies that help buy and sell homes and commercial properties.”

REALTORS® (who are all members of the REALTORS® Association of Edmonton) have just completed their annual membership renewal. Some members choose renewal time to withdraw or retire from the industry so membership numbers dip slightly at the end of March. So far the renewals are typical and the Association expects that the more stable market will encourage most REALTORS® to remain in the industry.  

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: The Realtors Association of Edmonton

In the last quarter of 2008, 6,198 people packed up their belongings and moved to Alberta which brings the province’s population to 3,632,483 as of January 1. Alberta was the only province with substantial interprovincial migration: BC came in next with 1,453 new residents according to statistics compiled by Statistics Canada, CMHC and the Conference Board of Canada.

Now that our newest residents have been in the province for a while and have secured stable jobs and lifestyles, they are going to be looking to find the home of their dreams, and they’ll need to move out of their current abode. That’s where you come in. Residential sales have been increasing since December and there are over 7,500 listings currently on the market. So if a client comes to you and asks if now is a good time to buy, tell them yes.

In-migration is a key factor that influences the housing market. New Albertans looking for homes increase demand for homes and simple supply and demand theory states as demand increases, so does price. Interested in what the market did in March? The REALTORS® Association monthly and quarterly market analysis is now available on the intranet. The Edmonton market is solid and now is a great time to buy

Well the market continues to improve. 

Currently with the Realtors Association of Edmonton there are 10, 388 residential properties listed on MLS.  However there are 2,599 single family dwellings listed in Edmonton proper.  In the last 30 days there has been 600 single family homes sold. That is a slight improvement over last week.

That would give us a listing to sales ratio of 4.33:1, an improvement over last week which would indicate that we are reaching the bottom to valuations.  A ratio below 4:1 would indicate that valuations would start to rise again.

If you are trying to time the market… start looking now.

Wow I really had a busy weekend.  I finalized an offer I started at the end of the week and had two more deals go pending.  While most Realtors seem to be slow I am very busy and still looking for a new administrative assistant… but enough about me.

As of this morning there were 10,159 properties listed with the Realtors Association of Edmonton (EREB).  However of those only 2,576 were single family dwellings in Edmonton proper.  In the last 30 days we have had 542 single family dwellings sell.

That would give us a listing/sales rati0 of 4.75:1.  That is very encouraging and indicating that we are very close to the bottom of the market if not at the bottom already.  Remember we need a 4:1 listing/sales ratio for a neutral market.

If you have been sitting on a fence waiting for the martket to bottom out… start looking now or take the chance to pay higher later in the year.

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.

Bargain house prices and record low interest rates may serve to finally entice first-time buyers back into the Edmonton real estate market.

The advent of the traditional spring market has been marked by a noticeable upswing in sales, greater absorption of active listings, and occasional multiple offer. After peaking at 11,000 listings in the mid-2008, Edmonton’s housing supply is back down to a more manageable 7,000 units. Average price has fallen to $308,970, down nine percent from one year earlier.

Days on market (61) are up marginally from one year ago. The combination of lower housing values, attractive financing, and government incentive programs are encouraging first-time buyers to venture forward.

Those who enter the market are finding a good selection of homes listed for sale at smart prices. Edmonton’s older communities are most popular with first-time buyer, who can purchase a single-detached homes starting at $225,000 or 1,000 sq.ft. condominium at $150,000.

While concerns about crude oil prices have weakened consumer confidence levels, the unemployment outlook remains relatively stable in Edmonton. First-time buyers with job security will find that a good credit rating and a five per cent down payment will go along way with financial institutions. The days of zero down and 40-year terms are gone, but purchasers with good Beacon scores should have few problems realizing home ownership.

Source: Re/Max

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 for a free $5,000 travel certificate.

Housing starts in Edmonton took a huge drop in February, reflecting a trend across the country, Canada Mortgage and Housing Corp. reported Monday.

In February, there were 213 housing starts in the metropolitan Edmonton area, compared to 692 in the same month in 2008. This represents a drop of 69 per cent.

The drop in multi-family units was even more pronounced. Only 64 were started last month, compared to 449 in February 2008, representing a change of 86 per cent.

“There is still a fairly large number of units under construction in multi-family, in some respects that supply is going to remain quite adequate, going forward,” said Richard Goatcher, a senior market analyst for CMHC in Edmonton.

The decline is the same in nearly every city across the province, Goatcher said.
“Looking at our numbers and comparing them with Calgary, we’re pretty much having a similar year in terms of new housing for the year-to-date,” Goatcher said.

“You know our numbers are are down by two-thirds. Calgary, they’re down by about 72 per cent.”

Grande Prairie was the only Alberta city that bucked the trend. Forty-eight single and multi-family homes were started in February, compared to 31 in February 2008.

Source: Canada Mortgage and Housing Corp.

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 http://www.findmyhouse.ca/

Also for your chance to enter a free draw for a $5,000 travel certificate visit http://www.findmyhouse.ca/

Open House Sunday March 08, 2009 1-4 pm

7207 – 144 Ave.

Exceptional 4 bedroom bungalow with a fully finished basement, with family room that has a dry bar and fireplace. Also there is a sauna in the basement. There is a heated double detached garage in the back. Main floor living room and dining room features hardwood floors, new carpets. Also recently the roof was redone and a new hot water tank installed. Located conveniently close to bus route, walking distance to shopping, and schools. The south facing back yard will allow you to enjoy that afternoon and evening sun, and has a large garden plot. All the walks are made up of poured concrete and there is a deck in the back yard.

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:

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