Edmonton Real Estate Blog

One of the best things you can do to ensure you get the home you want is to arrange for financing before you go shopping. This is often referred to as getting “pre-approved”.

Getting pre-approved simply means that your lender has calculated how much of a mortgage they’re willing to offer you, depending on your down payment and current financial situation.

There are two advantages to having a pre-approved mortgage. First, you know exactly what you can afford when shopping for a new home. Second, when you make an offer, you’re likely to be taken more seriously.

To get pre-approved call “Chita” at Dominion Lending Centres – Optimum 780-932-2225 or go online for a free no-obligations pre-approval @ www.edmontonbestmortgagerates.com

Canadian new home prices rose more than expected in January and hit a record high, but the pace of growth was the slowest since March, adding to evidence that the housing sector is starting to cool.

But that was nation wide and things are a little different here in Alberta. There is just too much going on in the oil and gas industry that going to keep the Alberta economy very strong.

So I do expect prices of homes but new and resale to rise during the balance of this year and next year as well.

It is looking like the Edmonton real estate market is improving. As of this morning there were 2,188 single family homes for sale in Edmonton proper. More importantly there has been 557 sales in the previous 30 days. That gives us a lsting to sales ratio of 3.93:1 which is basically at the level we need for the market the stabilize and become neutral. With this kind of ratio we can expect prices valuations to stop falling and normalize.

I anticipate as we get more along into our spring marketplace that we might see this ratio drop and if we do expect valuations to start to rise again. So if you are thinking of buying to hesitate do it now, especially before the mortgage rule changes on March 18th.

After selling 2 homes in the last 7 days I am really starting to feel that the Edmonton Real Estate market is starting to pick up.

This could be do to the fact that many people are trying to buy before the March 18th deadline for the change in mortgage rules. But I also have to attribute it to a all the economic developement that is starting to happen in Edmonton now and scheduled for the year 2012.

The Edmonton rea estate market should be booming again and I see prices increasing again in the incoming 18 months as well as I expect interest rates to increase and we see economic recovery happening and we see the Bank of Canada trying to curb any inflationary pressures by raising interest rates.

This make now the best time to buy for the next 2 years before prices in Emdonton go up and before interest rates also go up.

The more you know about the best way to reach a goal, the more
likely you are to get the result you want. So, whether you’re hunting
for a new job, assembling a backyard BBQ, or training for a 3 mile
run, you’ll want to use a proven process to help you get there.
That certainly holds true when shopping for a new home.
There is a proven process to getting the home you want, in the
neighborhood you want, at a price you can afford. Here are
the highlights:

1. Get Ready
There’s a lot you must do before you pack your energy snacks in the
car and go looking at homes. If you own your current home, you
must prepare that property for sale. You should also get financing
for a new home pre-approved, so you know exactly how much you
can afford.

2. Go shopping
Your next step is to view the right homes currently available on the
market. It’s a good idea to make a wish list of property and
neighborhood features you’re looking for in a new home. You may
not be able to get everything you want, but you can probably come
pretty close.

3. Make an offer
When you see a home you like, the first thing you’ll need to do is to
make an offer. This can be tricky especially if there are other
interested buyers.

4. Get an inspection
Always get the home checked out by a qualified home inspector. A
property may have issues, such as a foundation leak, that are not
obvious during a viewing.

5. Prepare for the move
Once you’ve made the purchase, you need to arrange for moving
and deal with other details, such as utilities, telephone, mail
forwarding and so forth.

Want a smooth home buying process? Call today at 780-634-8151 or visit us at www.findmyhouse.ca

Remodeling can dramatically increase the quality of life for building occupants, but if you are considering a remodel strictly as an investment, think twice about it.
 
Remodeling is rarely a sound monetary investment.

According to a report published by Remodeling Magazine, most remodeling projects add only 60% to 80% of their cost to the home, and no projects, on average, yield any positive return. Home upgrades are thus more accurately described as consumer spending than as true investments, which ordinarily have a decent chance of seeing some kind of profit.

Remodeling is also a cheap alternative to house-swapping, which can cost 10% of your current house’s value to real estate commissions, moving costs, and selling expenses. If your home update would cost less than the costs accrued by house-swapping, or if you can’t live outside your current neighborhood, the remodeling project might be worthwhile. If you do choose to remodel your house, as always, have the project inspected by Top Quality Inspections Inc.

Low-Cost Alternatives to Remodeling
Real estate agents often recommend the following fixes, as they are likely to return more than their cost:
• Refurbish rather than replace. Refinishing or re-facing cabinets is usually less expensive than it costs to replace them. Re-glaze sinks and tubs to extend their lives and avoid the high price of replacing them.
• Rethink how you use space. While adding floor space may seem like a reasonable way to deal with a space crunch, you can probably achieve the same result by ditching the clutter. An off-site storage unit can be used to free up space in your house.
• Re-purpose a room. Never use the guest bedroom? Maybe you can turn it into an office or a dining room instead.
• Paint. Paint can transform the look of a room or house, and it is inexpensive and relatively easy to apply. Hire a professional or do it yourself.
• Brighten the house by removing heavy curtains, washing windows, and trimming back branches and bushes that cover windows.
• Deep-clean. Scour your house from top to bottom.
• Clean up landscaping. Trim bushes and hedges, rake leaves, clear downed branches, plant flowers and replace mulch.
• Use staging techniques. Rearrange furniture and décor to highlight the positive aspects of the room and create an inviting space. While you can do this one your own, professional staging services are contracted to tweak color and furniture to create an emotional appeal. Consider that a large segment of prospective home buyers will preview homes on the Internet, and staging can dramatically enhance a first impression.

In summary, remodeling is often a bad investment strategy, and inexpensive alternatives may achieve the same end.  For more information on remodel inspections contact Top Quality Inspections Inc. or visit them at http://www.topqualityinspections.com/

While No-Frills mortgage products typically offer a lower – or more discounted – interest rate when compared with many other available products, the lower rate is really their only perk.

This type of product will only seem ideal for you if you have no plans to take advantage of benefits that will help you pay off your mortgage faster – such as pre-payment privileges including lump-sum payments.

Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their mortgage; and property investors who need a low fixed rate and are not concerned with making lump-sum payments.

No-Frills products also won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

It’s understandable why these products may seem appealing. After all, not everyone feels they have the extra cash to put down a huge lump-sum payment. And who needs a portable mortgage if they’re not planning on moving any time soon? But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage.

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick” close.

There are, however, other ways in which to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, and by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical 0.1% discount of a No-Frills product within approximately three years.

No-Frills products represent a great example of why interest rates are not the only important factor to consider when deciding whether to opt for a particular mortgage product. Much like buying a car, you get what you pay for. If you don’t want a car with air conditioning, a stereo, a cup holder, and so on, then you can get the cheapest car going… but you’ll likely regret it later.

As always, if you have questions about finding the right mortgage to suit your specific needs, I’m here to help!

Information provided by:
Chita Rattanarasy
www.EdmontonBestMortgageRates.com
Dominion Lending Centres – Optimum

Call her today for a free no-obligation mortgage pre-approval @ 780-932-2225

Last week I was really excited to see the listing to sales ratio drop below the 4:1 ratio that we need for a neutral or balance market. I guess that was short lived because that ratio did not stay below the 4:1 ratio.

As of today there are 2,174 single family homes listed for sale on the Multiple Listing Service for sale in Edmonton proper. In the last 30 days there were 496 sales a slight drop from the previous week. This will give us a listing to sales ratio of 4.38:1 slightly higher than what we need for a balance or neutral market.

With the ratio bouncing just over and just under the benchmark ratio it is indicating to me that the market is not sure which directions it wants to go so we will probably see a fairly stable valuation of homes for the time being.

Once I see at least 3 consecutive weeks of the ratio being one direction of other we will not really know which way it is going.

Last night at the Re/Max Elite awards banquet I was honoured with the award of being one of the top real estate agents at Re/Max Elite. It is nice to receive a trophy cup and recognition for all the hard work we put in last year. Let’s hope this year will be as good or better.

Edmonton mortgage rates information provided by Chit Rattanarasy of Dominion Lending Centres Optimum.  For more informations visit her at http://www.edmontonbestmortgagerates.com

Terms           Bank Rates        Our Rates
6 Month      4.45%                  3.95%
1 YEAR        3.50%                  2.64%
2 YEARS      3.75%                  3.29%
3 YEARS      4.35%                  3.59%
4 YEARS      5.14%                  3.84%
5 YEARS      5.44%                  3.94%
7 YEARS      6.34%                  4.94%
10 YEARS    6.65%                  5.15%
Rates are subject to change without notice. *OAC E&OE
Prime Rate is 3.00%
Variable rate mortgages from as low as Prime – .70% 
 Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.” Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.
*O.A.C., E.& O.E.