Edmonton Real Estate Blog

Well I have to say that I am impress with the numbers that I am currently seeing.  As of today there are 2,510 single family homes listed in Edmonton proper.  That number has been holding pretty steady over the last little while which is good to see.

Also the sales in the past 30 days have increased to 811.  This is definitely a trend that most people want to see with the exceptions of buyers.  With those numbers that give us a listings to sales ration od 3.09:1 again much lower than the 4:1  that is needed for a neutral or balanced market.

So look out boys and girls valuations are rising whether we like it or not.

Sales activity on the Edmonton Multiple Listing Service® increased in April as compared to last month and April 2008. There were 3,019 residential properties listed in April with sales of 1,843 (up 33.6% from last month and 1.1% from April 2008).

The average* price of single family homes in the Edmonton area was up 1% from March but, at $353,386, was still 8.5% below the last April price of $386,033. Condo prices were up 2.4% from last month to $236,020 while duplex/rowhouse prices were up 5.2% at $291,068.

“Increased sales activity is evident in most real estate offices and some REALTORS® are reporting multiple offers on select properties,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “However, inventory is still relatively high and sellers should price their properties aggressively to attract offers.”  

The number of residential properties available through the MLS® System on April 30 was 7,539 – up 1% from last month but well below the glut in April last year when there were 10,606 properties available. The year-to-date sales-to-listing ratio is just 46% but the April S/L ratio of 61% is an indicator of increased activity. Average days-on-market in April was 51 – a number last seen in March 2008.

“REALTORS® are optimistic about the Edmonton market,” said Ponde. “In-migration figures are positive, retail sales in Alberta are still higher than the rest of the country and unemployment figures are lower than other parts of Canada. First-time buyers are entering the market because of historically low interest rates and renovation incentives are encouraging move-up buyers to consider relocation.”

Total sales through the MLS® System for the month were valued at $635 million with a year-to-date total of $1.75 billion. Total YTD sales value is down 23% from the same time last year but sales are off by just 16%

Source: Realtors Association of Edmonton

In light of the current market and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late, keep in mind that now – more than ever – it’s important to be careful what you do between the time your mortgage is approved and when it funds. A few mortgage lenders and insurers have been doing something lately that they have not done in a long time, and that is pull new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

1.  Don’t buy a new car or trade-up to a more expensive lease.

2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, give me a call and I can let you know if this may jeopardize your approval.

3. Don’t change industries, decide to become self-employed or accept a contract position even if  it is within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.

4. Don’t transfer large sums of money around between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.

5. Don’t forget to pay your bills, even ones that you are disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent    account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!

6. Don’t open new credit cards. Again, just wait until after your funding date.

7. Don’t accept a cash gift without properly documenting with me – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give me a call before you deposit it.

8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding. Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to me before doing any of the above just to make sure!

Article Provided by:

Narish Maharaj

Dominion Lending Centres Optimum
(780) 238 – 7038
Apply online :
www.dlconline.com

Weekly rate minder provided by: Narish Maharaj Dominion Lending Centres Optimum (780) 238 – 7038 Apply online : www.dlconline.com

Buyer should beware… prices are going to rise!!!

As of today there are 2,435 single family homes for sale in Edmonton proper.  That is a slight drop from last week, so inventory is shrinking.  In the past 30 days there were 798 homes sold in Edmonton proper.  Now that is an increase from previous weeks.

That gives us a listings to sales ratio of 3.05:1 well below the 4:1 we need for a balance or neutral market.  It is also the 4th consecutive week that we have been below that 4:1 ratio.  As a result I am convinced that we are going to see valuations rising if they are not already.

Buy now if you are going to buy because you will pay more later.

For all of you that were looking for the statistics yesterday I apologize for being a day late.  I will continue to try and post them on monday morning.

As of today there were 2,529 residential listings in Edmonton proper. A number that seems to be holding fairly stable at the moment.  However the number of sales are on the rise.  In the past 30 days there were 778 single family homes sold in Edmonton proper.

That would give us a listings to sales ratio of 3.25:1.  That is the third straight week in a row that the ratio has been below that crucial 4:1 level.  This is an indicator that valuations are going to be rising.

So if you are thinking of buying do it now and potentially save yourself thousands of dollars.

Weekly rate minder provided by: Narish Maharaj Dominion Lending Centres Optimum (780) 238 – 7038 Apply online : www.dlconline.com

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Existing MLS® home sales activity increased for the second month in a row in March 2009, according to statistics released by CREA. The number of new listings also continued trending lower in March, which firmed up the balance of supply to demand.

A seasonally adjusted total of 31,135 homes traded hands nationally via the MLS® in March 2009. This is an increase of 7% from the previous month, and builds on the 10.3% activity gain in February. The number of transactions in March 2009 stands 18% above levels reported in January 2009, when activity sank to the lowest level in a decade.

The monthly increase in activity was largest in BC (13.6%), and Ontario (10.5%). Sales were also up from February levels in Manitoba, Quebec, and Newfoundland & Labrador.

Actual (not seasonally adjusted) transactions numbered 35,225 units in March 2009. While this remains 13.7% below levels reported in March 2008, it is the smallest year-over-year decline in six months.

The national average price for home sales via the MLS® remains below levels reached one year earlier, but year-over-year declines are shrinking. The MLS® average residential price for homes sold in March 2009 was $288,641, down 7.7% from March 2008. This is the smallest year-over-year decline in six months.

The average price for homes sold via the MLS® set a new record in March 2009 in Manitoba, and remained above year-ago levels in Saskatchewan, Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador.

The national average price continues to be skewed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions at the higher end of the price spectrum. British Columbia, Alberta and Ontario, where homes are more expensive, are significant contributors to the current downward trend in national average price. MLS® home sales activity in these provinces accounted for 69% of national activity in March 2008, compared to 67% in March 2009.

The price trend is less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was down 4.7% year-over-year in March, compared to a 5.1% decline in February.

“Housing markets are starting to show signs of buyer interest because of lower prices and interest rates,” says Dale Ripplinger, President of CREA. “We expect April sales activity will feel some effects from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan, and the First Time Buyer Tax Credit.”

More information on the national market can be found on www.crea.ca under Media Centre.

Local information including the latest press release and statistics can be found on www.ereb.com for the public or on the intranet for REALTORS®.