Edmonton Real Estate Blog

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 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 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 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 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

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

The number of properties sold via the MLS® in Canada edged down further in December 2008 to reach the lowest level for the month since December 2000, according to CREA.
Seasonally adjusted residential MLS® sales activity numbered 27,357 units in December 2008, a decline of 1.8% compared to the previous month. However, seasonally adjusted activity was up in more than half of Canadian housing markets. Activity declines in Montreal, Calgary and Edmonton more than offset a rebound in the number of transactions in Vancouver, resulting in a small monthly decline in national sales activity.
The small month-over-month decline in national MLS® seasonally adjusted sales activity in December followed double digit declines in September (-14.9%) and October (-12.1%). Activity plummeted 22.2% in the fourth quarter of 2008 to 86,879 units, with seasonally adjusted quarterly declines in activity in all provinces. The sharp drop in fourth quarter activity accounted for over half of the decline in transactions since the peak in 2007.
Year-over-year declines in the MLS® average home price were reported in about half of local markets in December. Lower activity and average prices compared to one year ago remain most pronounced in Canada’s more expensive housing markets. This continues to weigh on the national MLS® residential average price.
The MLS® national average price of homes in December 2008 declined by 11% from where it stood a year ago. The major market price trend was similar to the national trend, down by 9.9% year over year in December 2008.
“Moderating home prices in Canada should not be confused with the downturn in the U.S. housing market,” says CREA President Calvin Lindberg. “But any local real estate market is not immune to global economic challenges, and that is what we face today. Low prices are not the concern as much as the perception of doom and gloom. Buyers are waiting to see if the real estate market has hit bottom, and that is a very complex thing to try and calculate. Most of us will only be affected by the market correction psychologically, because the majority of Canadians will not buy or sell property in the coming year.”
Seasonally adjusted new MLS® residential listings numbered 72,931 units in December, down 3% from levels recorded in November. New listings are trending lower. In December, they stood 8.1% below the peak reached in May 2008.
Resale housing market balance is represented by sales as a percentage of new listings. The rise in the number of new listings in the first half of last year along with declining sales activity, particularly in the fourth quarter, resulted in an increasingly balanced resale housing market over the course of 2008.
Sales as a percentage of new listings in the fourth quarter of 2008 fell to the lowest level since the mid 1990s. New listings are trending down from the peak reached in the second quarter of 2008. If this trend continues, the balance of supply and demand will stabilize in 2009.
“Average prices will remain under downward pressure during the Canadian economic recession,” said CREA Chief Economist Gregory Klump. “Shaky financial market confidence is pulling down business and consumer confidence. The consensus economic forecast predicts the economy will rebound in the second half of 2009, so housing market trends should strengthen next year.”

Source:Realtors Association of Edmonton

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

As of this morning there are 2,395 single family dwellings listed in Edmonton proper. In the last 30 days there were also 249 sales of single family dwellings in Edmonton proper.

With those numbers that gives me a listing to sales ration of 9.62:1. That is over double the 4:1 needed for a neutral market. To me that indicates that we are going to see continued downward pressure on valuations.

So if you are thinking of selling this year the sooner you put your home on the market the better the chance of getting the most money possible.

If you are thinking of selling please feel free to give me a call anytime @ 780-995-6520 and ask for a free market analysis of the value of your home.

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

Well we are off to a new year with all hopes and expectations of a great year.

Currently there are 2,319 single family homes on the market in Edmonton proper. However in the last 30 days there only has been 230 sales. That gives us a listings to sales ratio of 10.08:1

That is the highest I have seen this ratio since the market turned in mid 2007. Now part of that has to be attributed to the fact that these numbers reflect the activity in December which historically has been one of the slowest months of the year.

Having said that the ratio is still way to high and I would expect there will be more pressure on valuations in the incoming few weeks of the new year.

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

As of this morning there were 2,982 single family homes available in Edmonton proper. In the past 30 days 415 single family homes were sold in Edmonton proper. That would give us a listing to sales ratio of 7.19:1

With a ratio still significantly higher than the 4:1 required for a neutral or balanced market I expect there to be continued downward pressure on valuations.

Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX

Recovery linked to economic stability next year

Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

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RE/MAX Housing Market Outlook 2009…2

Canada’s real estate environment is considerably more complex than it has been in recent years. The landscape is definitely changing — with most markets shifting into either balanced or buyer’s territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace. In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.