Edmonton Real Estate Blog

According RBC Economic Report thing look bright for Alberta for the next couple of years.

Here is an a portion of that report as it pertains to Alberta.

On a fast track

Amid the heightenedeconomic uncertainty spreading globally in the past severalmonths, Alberta’s
steady progress toward full recovery from the recession is refreshing. Overcoming obstacles of its own—chief among them the wildfires that caused significant economic disruptions in May—the provincial economy is now displaying the stuff that made it a growth powerhouse a little more than half a decade ago. Impressed by the performance to date, we upgraded our call for Alberta’s real GDP growth
to 4.0% this year, which is a pace that we believe will be largelysustained in both 2012 and 2013, at 3.9% and 3.8%, respectively. Were it not for the even stronger performance by Saskatchewan, Alberta would recapture the crown of Canada’s fastest growing provincial economy.

Job market booming

With the oil industry buzzing like it was in 2006 and serving as a catalyst for activity in other sectors, Alberta’s job market is booming. In the first 11 monthsof this year, there have been 98,000 net new jobs created in the province, representing the best tally since 2006. The gain could well cross the 100,000 mark when all is said and done in 2011, which would set a new record for Alberta. What is most
impressive about this supercharged job market is that gains are broadly based across industries. The energy sector is directly responsible for only a small portion of these gains. Small to moderate advances are being registered in the vast majority of industries. Moreover, the boom entirely emanates from the private sector, which is the source of an astounding 116,000 new jobs this year. Such strength easily made up for declines in the public sector and among the self-employed.

Albertaconsumers spending big

With job prospects improving so quickly and confidence rebuilding, Alberta consumers have been big spenders in 2011. Retail sales in the province have increased at one of the faster rate in the country, with big ticket items such as motor vehiclesenjoying further resurgence from their recessionary lows. We expect that favourable labour market conditions—we project employment to rise by a nation-leading
3.1% next year—will continue to support such positive consumer spending trend in 2012.

Non-conventional crude production setting new records

Generally, the outlook for the Alberta economy remains very bright (notwithstanding the higher risks that face virtually all global economies). Oil production in the province has now fully recovered from the disruptions caused by the wildfires in May and is now on a record pace. We expect that, with more oilsands capacity continuing to be added, non-conventional crude output will set new highs in the
period ahead. Pipeline capacity issues—the topic of much debate in the United States in the past several months that ultimately resulted in delaying the approval decision on the Keystone XL project—might create some transportation bottlenecks to U.S. refineries by 2013, which could restraingrowth in the
province’s exports that year.

Alberta’s oilsands: a boon for years to come

Meanwhile, work on several oilsands megaprojects is proceeding and will continue to generate tremendous economic activity in the province. There is an inventory of $120 billion worth of oilsands projects at various stages of development currently; and given the strong commitment by all stakeholders to build this resource, it will be a boon to Alberta’s economy for years to come.

Source: RBC Economic Report, Dec. 2011

April 14, 2011 – Well just when you thought maybe spring was here we are being hit with a snow storm this morning with a forecast with between 5 – 10 cm of snow.  I think we might just skip spring and move onto summer.

The spring marketplace continues to be strong.  As of this morning there are 2,551 single family dwelling for sale in Edmonton proper. This is a pretty typical inventory level for this time of year.  In the previous 30 days there were 661 single family homes sold in Edmonton proper.

This would give us a listing to sales ratio of 3.85:1 just slightly below the 4:1 ratio that we require for a neutral or balanced market. As long as this ratio stays below the 4:1 market expect valuations to continue to have upward pressure to increase.

I am experiencing this first hand as I was trying to sell a property to one of my buyers earlier this week and there were 6 offers written on the property before we could present. Ultimately we had to write an unconditional offer $12,000 over the list price in order to acquire the property.

This is our new reality again. Really good properties listed at a good price are selling within 24 – 48 hours and don’t be surprised to be in a multiple offer situation.

The average list price of a single family dwelling in Edmonton proper is $398,717 and the average selling price in the last 30 days was $386,028. The average number of days on market was 43 days.

Source: Realtors Association of Edmonton

To view the video for Edmonton’s First Time Buyer report just click on the following link:

http://www.youtube.com/watch?v=q_djccXIHN8

Motivated by a strong Canadian dollar and what they perceive as bargain U.S. home prices, as many as 1 in 5 Canadians say they’d consider purchasing property in the U.S. 　

A new survey for BMO Bank of Montreal and conducted by Leger Marketing reveals that as home prices have dropped in the regions of the U.S. which are traditional destinations for Canadian snowbirds, interest in purchasing U.S. property has risen. 　

Want to know which Canadians to target? 　Regionally, those in Alberta (31 percent), British Columbia (28 per cent), and the Prairie Provinces (27 per cent) are most interested buying property in the U.S.　

Bank of Montreal suggests that Canadians wanting to purchase in the United States should consider the questions shown below. 　While some of these are lifestyle questions which the prospects will have to answer for themselves, to answer other questions, a REALTOR’s input will be valuable. 　If you want to tap into this market, make sure you are knowledgeable and can refer prospects to tax advisors and others as needed. 　

Questions for Canadians Considering Purchasing in the United States:

• What states and neighborhoods fit your needs?
• Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.　
• Consider flights and airlines, if you can fly there direct, and the cost.　
• Research and even ask locals about the community to ensure it suits your needs.　
• What to consider when financing the purchase with a U.S. based financial institution?
• It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.　
• What mortgage money is available to international buyers?
• Furthermore, understand the impact of penalties and withholding taxes if and when you decide to sell your home in the U.S.　
• Do you understand the status of the property?
• Understand the terms of the property. For instance, is it labeled as short-sale or on foreclosure?　
• The status of the property can have a variety of implications. Be sure to consult an expert before making any buying decisions.　
• How will you use your property?
• Is your purchase for investment or lifestyle purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.　
• If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in two countries, so make sure you speak to a taxation specialist.　
• How much time will you spend south of the border? Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.　

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.

As we enter our spring marketplace we are seeing the market continue to be strong.  As of this afternoon April 08, 2010 there are 2,348 single family homes listed in Edmonton proper.  That is up slightly from last week’s number of 2,240 available homes for sale.

In the past 30 days we have seen 749 single family homes sold.  That is up from last week’s number of 661 sales in the previous 30 days.  That is a significant increase for a one week period.

What is more important is the listings to sales ratios.  That ratio is now 3.13:1, lower than the 3.31:1 ratio that we had the previous week.  This indicates to me that we are still going to see continue upward pressure on valuations.

If you are thinking about buying this year you might want to consider buying right away.  You have two threats that you have to consider if you have been thinking of buying.  Firstly, we know that there is pressure for prices to continue to go up.  Waiting will mean you will have to pay more for that home you want.  Secondly, there is the expectation that interest rates will go up again this summer.  If this happens it will make your mortgage payments more expensive and will reduce the amount of a mortgage that you will be able to qualify for.  The new mortgage rule changes require that you be approved at the 5 year rate regardless which term you choose.

If you are thinking about moving up to a larger, more expensive home, again you want to make the move as soon as possible.  Yes, your home will go up in value, but your future home will have gone up more significantly that your current home.  The end result is that you will have to carry a larger mortgage by waiting for your home to get to a higher value.

This is my two cents for this month.  

If you have any questions please don’t hesitate to call.  I would love to help you. (780) 634-8151

Edmonton, April 6, 2010: Housing figures released by the REALTORS® Association of Edmonton for March and the first quarter of 2010 show that resale housing prices are up; listings and sales are up.

“There is consumer confidence in this market and both buyers and sellers appear eager to enter the housing market,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Prices are up about 10% from a year ago and sellers are eager to take advantage. Buyers are aware of higher mortgage rates ahead and are getting into the market before the rates rise.”

Single family residences in the Edmonton area sold on average* for $388,473 in March which is up 4.7% from February and 11% from a year ago. Condominium prices rose by 8.4% month-over-month and 10.5% year-over-year. The average condominium sold for $252,416 in March. Duplex and rowhouse prices (at $313,836) dropped a third of a percent in March but were up 10.4% from a year ago. The average residential price was $343,607 (up month-over-month by 8.5%).

Sales also demonstrated the optimism of the marketplace. 3,728 residential listings in March were up over 30% from a year ago and up 246% in the first quarter. Residential sales of 1,571 properties in March were up 15.1% from a year ago and 77.3% in the first quarter. Sales were up from 1,307 in February: a 20.2% increase. The March sales-to-listing ratio was 42%; down from 52% in February.

“Seller activity has boosted the inventory to 6,770 residential properties,” said Westergard. “I am less concerned about available inventory now than I was at the beginning of the year. I think the market has reached a balance between buyers and sellers.”

All major banks raised their fixed mortgage rates in late March and the Bank of Canada has warned that interest rates will rise again after the second quarter. Many buyers are hurrying to lock in rates and find a home before the more stringent qualification requirements for mortgages come into effect on April 19. Alberta will not be influenced by the GST harmonization taking place in Ontario and BC so we may not see the sales slump in the second quarter that is expected in those two provinces.

The average days-on-market in March was 41 as compared to 47 in February.

-30-

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: REALTORS® Association of Edmonton

Well it is appearing that the Edmonton real estate market might be stabilizing.  As of this morning there were 2,240 single family homes for sale in Edmonton proper.  That is an increase of 113 homes over last week.

In the past 30 days there were 661 single family homes sold in Edmonton proper.  That is an increase of 42 homes sold over what sold in the previous 30 day period.  That will give us a listing to sales ratio of 3.39:1, which is slightly better than last week, but I would be cautious to think valuations are going to rise again.  I think we are going to see more stabilization at this time unless we start seeing the ratio drop further in the coming weeks.

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

As I anticipated, the trend is continuing.   The number of listings coming on the market is outpacing the number of sales.  As of this morning there were 2,127 single family dwellings in Edmonton proper on the market an increase from last week’s inventory level of 2,003. 

In the last 30 days we had 615 single family dwellings sold in Edmonton proper.  That number is actually down from last week’s number of sales of 619. 

This gives us listings to sales ratio of 3.46:1 up again from last week’s ratio of 3.24:1.  So the pressure for valuations to rise is easing and could very well go the ratio of 4:1 very soon.  If we break that we can start seeing valuations drop. 

Please call me if you have any questions about this, or anything else related to Real Estate.

I would love to help you out. (780) 634-8151 

Serge Bourgoin, Founding and Managing partner of Team Leading Edge at RE/MAX Elite 

Team Leading Edge… Leading the way with extraordinary service

Edmonton, March 2, 2010: Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.  

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

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: REALTORS® Association of Edmonton