Edmonton Real Estate Blog

Edmonton, April 3, 2014: The REALTORS® Association of Edmonton launched a new community information website today. The website, at YEGisHome.ca, contains information about every community in Edmonton, over 90,000 businesses and public places, ticketed events and local news. It also contains all the homes and properties currently available for sale on the Edmonton Multiple Listing Service® (MLS®) operated by the Association.

“Homebuyers want to know the details of a home for sale but they also want to know more about the community in which it is located,” said Greg Steele, President of the REALTORS® Association. “This website provides a platform for new and existing residents to connect with their community in a more informed way.” Because of the high volume of traffic to real estate websites, the community information on YEGisHome.ca will get more exposure than the same data on other websites.

The website is organized by community and all information relevant to that community is located in one place. The website also picks up any Twitter messages (tweets) tagged with #YEG and the community name. Local news items are provided by CTV Edmonton. Local events are profiled and tickets may be available on-line through Tix on the Square.

“REALTORS® have served home buyers and sellers in the Edmonton area for over 85 years,” said Steele. “We are a stable and responsible business organization and YEGisHome.ca is made available at no charge to users as our gift to the community. We’re very proud of YEGishome.ca; we believe it’s more than just a dynamic new website. It will change the way people experience real estate, making it easier than ever to make well informed choices.”

The website was developed in Edmonton by Ignition Media, a full service agency that specializes in branding, advertising, web design and development, and interactive marketing. “We are excited by a challenge and delighted that the REALTORS® Association of Edmonton selected us to develop this website,” said President Tim Hanas.

The website will be expanded to include other communities in the near future although available homes and municipal information is already available for many of the municipalities in the area.

Source: Realtors Association of Edmonton

Edmonton, April 2, 2014: The REALTORS® Association of Edmonton reports that the housing market in the Edmonton Census Metropolitan Area (CMA)1 is poised for a very active spring sales period. Sales of all types of residential properties in the first quarter in the Edmonton CMA were up 5.8% as compared to the same period in 2013. Single family detached (SFD) sales were up 5.1% while condo sales rose a staggering 11.0% in the first quarter.

“We expect that sales will increase from month-to-month as we approach the second quarter,” said President Greg Steele. “But this year-over-year increase is an indicator of the high demand for housing in this market. Price rises will follow the demand and we can expect active competition for desirable properties.”

There were 3,679 all-residential sales from January to March 2014 compared to 3,478 sales in 2013. SFD sales rose from 2,099 to 2,206 while condo sales in the first quarter jumped from 996 to 1,106. Listings also rose to fill the demand. There were 6,324 residential properties listed so far this year compared to 6,086 last year; an increase of 3.9%. Listings of SFDs rose 5.5% Y/Y while condo listings dipped by half of one percent. The overall sales-to-listing ratio in the first quarter was 58% compared to 57% last year.

Despite the increase in Y/Y listings the available inventory at the end of March was down 6.9% at 4,413 residential properties as compared to March 2013. The turn-around time on sales reflected the busy marketplace with average days-on-market in March at 44 days; down from 51 in March 2013.

“Strong sales indicate consumer confidence in the Edmonton marketplace,” said Steele. “The high condo sales and low condo listings indicate the demand for lower priced properties and first time buyers are choosing condos as an option to lower-priced SFDs which are in high demand and short supply.” He pointed out that REALTOR® figures do not include the sale of many new homes and condos which are sold directly by builders and not through the Multiple Listing Service® (MLS®).

Overall, month-over-month average sale prices were stable. The all-residential price moved down less than half of one percent from $363,281 to $361,870. SFD average prices were also down fractionally from $433,205 to $432,458 and condos saw price increases of 3.6% from $238,376 to $247,005 on average. Duplex/row house prices were down from $338,024 in February to $331,038 in March.

REALTORS® have two days to report the sale of a property and end-of-month sales figures may not include sales in the month which were not yet reported. As a result the sales figures are adjusted to account for the late reported sales. There were 1,678 adjusted sales (1,554 reported) of residential properties in March compared to 1,224 (actual) sales in February. This is an increase in activity of 37%. Single family sales are adjusted to 990 (917 reported) and adjusted condo sales were 512 (474 reported).

Total residential sales volume for the first quarter of 2014 is $1,322,289,827. Total sales through the MLS® (including rural and commercials sales) were $1.7 billion so far this year compared to $1.6 billion in 2013.

Source: Realtors Association of Edmonton

When Listing your home, are you leaving money on the table? Do you know where you are losing equity that should be kept?

Factors that leave money on the table are undone repairs, decorated personal choice paint colors, outdated flooring and fixtures, or unappealing curb appeal that needs work.

When you were a buyer, do you remember how you approached other people’s outdated homes or ones that were in disrepair? You walked away, unless you got a SUPER low price.

So now that the tables have turned, the buyers are using their critical eye to determine if they agree with your price based on the amount of work they feel your home requires to make it move in ready.

The buyer will deduct a higher price than it actually would cost to do these repairs or updates. They do this because of the unknown factor and also the stress and time it will take to fix your homes issues.  You basically will pay them for their time and labor to do something that you could have done, or contracted and controlled the costs on.

So, you leave money on the table.

By doing your own updates and controlling costs through management of your contractors, you can KEEP money in your pocket. Your costs to update or paint, will be far less when you are in control. This will initially be an expense but in the long run your asking price will be at market value and  your price will not likely be reduced, plus the carrying costs will be much less due to having a move in ready sale able home.

Don’t leave money on the table!

Keep in mind that as a home owner you should be investing 1-3% of your market value every year to do updates on the home. This will ensure that when you go to sell, you are more likely able to list for market value and not have to do major updates to become a GOOD listing.

Today’s buyers are way too educated to pay market value for a house that need 10k or 40k or more worth of work. Gone are the days when a buyer bought a house and saved up to fix it over the years. Today people want what they see on TV and they will get it. It’s either going to be your house, or your competitors. You can decide.

Source: simply irresistible interiors inc. newsletter

If you are THINKING about buying a home or rental property… NOW is the time. I don’t need a crystal ball to know what’s brewing. Just take a look around and read the news articles.  If you don’t trust the columists/reporters just visit the Alberta Treasury Board and Finance website. A heading for their article is “ Alberta’s economy enters 2014 firing on all cylinder.” What does this all boil down to? Well, the components to create a perfect storm are aligning and the end result will be a new boom in Alberta!  Here are the components we are experiencing:

1)      The dollar is devalued… This means oil is produced in Alberta and paid with Canadian dollars. When sold in the higher U.S. dollars, this is a hike in profit for the oil producers.

2)      Job growth and full employment. Developers out east are viewing Alberta as favorable place to set up shop. We have projects that are delayed simply due to lack of qualified workers. So, not only will Alberta attract people from outside of province, but also out of country.

3)      Net migration into Alberta last year is 43,000 according to Robert Kalcic, Senior Economist with BMO Capital Market. This year that number will big higher.

4)      Low volume of homes sales. Many, we see now have multiple offers.

5)      Close to all time historic low interests

So, let’s add all of that up: low volume of homes, high demand = higher prices or higher rents…The Perfect Storm. So, if you missed the boat, or were too young during the last boom you may want to act now. Dorothy, hold onto your slippers we’re in for a ride!

Give me a call to discuss your financing options. Chita Rattanarasy. 780.932.2225.

I’m excited about some news and I wanted to share it with you! For those who own a home already or looking to buy soon, I’m happy to say Alberta and Edmonton is heading for another boom.

If you are THINKING about buying a home or rental property… NOW is the time. I don’t need a crystal ball to know what’s brewing. Just take a look around and read the news articles.  If you don’t trust the columnists/reporters just visit the Alberta Treasury Board and Finance website. A heading for their article is “ Alberta’s economy enters 2014 firing on all cylinder.” What does this all boil down to? Well, the components to create a perfect storm are aligning and the end result will be a new boom in Alberta!  Here are the components we are experiencing:

1)  The dollar is devalued… This means oil is produced in Alberta and paid with Canadian dollars. When sold in the higher U.S. dollars, this is a hike in profit for the oil producers.
2)  Job growth and full employment. Developers out east are viewing Alberta as favorable place to set up shop. We have projects that are delayed simply due to lack of qualified workers. So, not only will Alberta attract people from outside of province, but also out of country.
3)  Net migration into Alberta last year is 43,000 according to Robert Kalcic, Senior Economist with BMO Capital Market. This year that number will be higher.
4)  Low volume of homes sales. Many, we see now have multiple offers.
5)  Close to all time historic low interests

So, let’s add all of that up: low volume of homes, high demand = higher prices or higher rents…The Perfect Storm. So, if you missed the boat, or were too young during the last boom you may want to act now. Dorothy, hold onto your slippers we’re in for a ride!

What an exciting time to be in Alberta! Give me a call to discuss your financing options.

Here are links to the news articles and data that I’ve extracted my information from:

http://www2.canada.com/edmontonjournal/news/business/story.html?id=ab10cab1-c242-44f4-99db-bf23a39ac9c4

http://www.edmontonsun.com/2014/03/14/hicks-on-biz-a-boom-is-happening

http://www.theglobeandmail.com/report-on-business/economy/housing/alberta-housing-market-set-to-
surge-bmo/article17493280/

http://globalnews.ca/news/1220698/migration-to-alberta-is-exploding/

http://www.finance.alberta.ca/aboutalberta/economic-trends/current-economic-trends.pdf

Written by Chita Metcalf – Contact her today to get yourself pre-approved for a new mortgage.

The Mortgage Group

Phone: 780-932-2225

Website: www.EdmontonMortgageSource.com

Inspecting your home on a regular basis and following good maintenance practices is the best way to protect the investment you have in your home. Spring is here, and an important season regarding home maintenance. We may get more spring storms but I can promise eventually all the snow will melt.  So here you go, some tips to maintain your home through the spring prepare your home for summer.

• Check your eaves troughs and downspouts for loose joints and secure attachment to your home, clear any obstructions and ensure water is flowing away from your foundation.
• Check your sump pump. It will work very hard during the spring thaw. Is it operating properly? Clear any obstructions from the discharge pipe and make sure it allows water to drain away from the foundation.
• Examine your foundation wall for signs of cracks, leaks or moisture and repair as necessary.
• Assess all painted wood surfaces (window and door frames, wood siding, accent trim, decks and fences) make a plan to paint surfaces as required in the summer when the temperature is warmer during the over night period.
• Inspect all railings and stairs for safety.
• Using binoculars inspect the roof for missing or curled shingles, damaged air vents and anything that seems unusual, consult a roofer if you observe damage.
• Check all the places air enters or exhausts from the home. Are the grates clean, do the exhaust vents have functioning flappers. Check the dryer vent for lint. Vacuum all your bathroom exhaust fan grates and since you have the vacuum out do the same for your smoke detectors and carbon monoxide detectors.
• Test your smoke detectors with smoke (light a candle and blow it out close to your smoke detector)
• In mid April it is time to clean your humidifiers and put them away for the season.  If your humidifier is attached to the furnace shut it off for the summer. If you use a de-humidifier in the summer, clean it, set it up and test it.
• Clean or replace your furnace filter.
• If your house is equipped with air conditioning, uncover the compressor unit, inspect the insulation on the lines and clean debris from the condenser. Check the breaker and turn it on, consider having your air conditioner serviced (recommended every 2-3 years). Do not test the unit until the outside temperature exceeds 15 degrees Celsius.
• Have fireplace and wood stove chimney’s cleaned, I also recommend a WETT inspection.
• Turn off pilot lights on anything you may not use for the summer, like a garage furnace.
• Check all your window screens and hardware. Replace storm window with screens if you have an older home, clean all the window tracks for smooth operation this summer.
• Open your outside hose bib once all danger of frost is gone, inspect it for leaks.
• Maintain your landscape. Check for any grading issues and correct as needed. Cut back tree branches that are close to or overhanging the house and overhead electric service.
• Finally get the BBQ cleaned up, BBQ season is just around the corner!

Click here to register or call 780-634-8151.

In a good year the winter in Edmonton lasts until mid-June so technically the season of Spring has a unicorn status as far as Edmontonians are concerned. However, that doesn’t mean we avoid Spring clean-up. Once the snow melts there is a significant amount of leaf or debris build-up around the exterior of your house and a few other problems that every home owner should attend to before enjoying the sun. Read below for a list of home maintenance items to get your house ready for Spring:

Inspect your gutters. The winter can make them loose or leaky and improper drainage can result in water in the basement. Ensure that downspouts drain away from the foundation and free of any obstructions.

Examine your yard for low areas. Rain in the Spring can lead to yard flooding which can lead to foundation flooding and damage.

Check out the wood trim around windows, doors, railings and decks. Make repairs to these items before the rain does more damage to the exposed wood.

Take a look at the chimney exterior for any signs of damage. Get the flue (the duct pipe that lets out the exhaust gases from the fireplace) cleaned and inspected by a certified chimney sweep.

Inspect the hose faucets for freeze damage. A proper inspection would be turning on the water and placing your thumb over the opening, if you can stop the flow then it is extremely likely the pipe inside the home is defective and should be replaced.

Look at the concrete for signs of cracks or shifting. Every exterior slab should drain away from the foundation. Fill in the cracks with crack filler or silicone caulk.

Source: Full Scope Home Inspections Inc.

When saving, greater returns, even if accompanied by greater volatility, can reduce the amount an investor has to save. Saving $5,000 per year with no income will take 20 years to reach $100,000. A moderate investor can, on average, reach double that amount by investing the same $5,000 mid-year for the same 20 years.

Feel free to contact me or visit my website for more information.

Douglas J. Bodtcher  
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com