Edmonton Real Estate Blog

I have to let you all know how excited I am.  I just came back from a 3 day course in Calgary on real estate investing and I have to tell you even for an old dog like myself that has been in this industry since before computers I learned so much.  It is amazing what you didn’t know that you didn’t know!!

Let’s get back to what is happening in the Edmonton Real Estate Market.  As of this morning in Edmonton proper there were 1,936 active single family dwellings listed.  That is almost an 8% drop from last week.  In the last 30 days we have seen 674 single family homes sold in Edmonton proper, which is an increase of 2.4%

Well it doesn’t take a rocet scientist to know that if supply is going down and sales increasing that valuations are probably rising.  As a matter of fact the current listings to sales ratio is down to 2.87:1 in comparison to 3.21:1 last week.

As long as that ratio stays well below the 4:1 needed here in Edmonton for a neutral or balanced market valuations are going to continue to rise.  So if you are a first time buyer you cannot afford to wait till you have more downpayment you need to make the more now.  If you are thinking of buying a more expensive home from your current home again you cannot wait as your next home will go up more in value than your present home.  For those that are downsizing then maybe you want to wait as long as you can, because you will pur more money in your pocket.

Well that is it for me right now.  Keep checking here on the blog when I will be sharing some of what I learned in my course over the weekend, otherwise I hope that you have a terrific week and I will see you here next Monday with the statistics of the week.

To view the complete report with specifics on your region click on the following link: http://www.edmontonhomesforsale.biz/view_special_reports.php

With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX. 

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record.  Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway.  Percentage increases in unit sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421).  Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978).  Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.

 The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again.  In terms of its impact on the resale market, by historical standards, this recession was one of the mildest.  The resilience of bricks and mortar has been demonstrated time and again.  While there may still be some challenges down the road, the worst is definitely behind us in the housing industry.

 The recovery of Canada’s resale housing markets speaks to the tremendous value Canadians place on the importance of owning a home.  The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates — Calgary (74.1), St. John’s (71.5), and Regina (70.1).  Significant gains have also been made over the same period in markets such as Ottawa, where levels rose from 51.4 per cent to 66.7 per cent, and Toronto, where levels rose from 57.3 to 67.6 per cent.

 Public sentiment can perhaps best be illustrated by a recent Angus Reid Omnibus Survey* that asked the question “In which do you feel more comfortable investing your money?  The stock market or real estate.”  Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. The results of the RE/MAX Bricks and Mortar Report are clearly representative of this national dynamic at work.

 Markets are heating up across the country as purchasers take advantage of affordable prices and rock bottom interest rates.  Those who missed the boat in years past have found that sitting on the sidelines can be a costly move.  Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the Fall and possibly into early 2010.

 Over the past thirty years, the Canadian residential real estate market has experienced three major downturns – 1981, 1989, and 2008.  While there have also been regional fluctuations throughout the years, return on investment over this period has been substantial, with Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price appreciation.

The overall stability of real estate as an investment has also played a role. Markets like Halifax-Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation.

 * The Angus Reid Omnibus Survey was conducted on September 15, 2009 and yields a margin of error of +3.1 per cent, 19 times out of 20.

I guess we can be happy with the thought that the market seems to be stabilizing.  My concern is with the market stabilizing it will not take much for the market to go either way up or down depending on what might be in the news that week…

As of this morning there were 2,098 active single family homes on the market in Edmonton proper.  Again a relatively consistent number with what we have seen in the last few weeks.  The number that is somewhat worrisome is the number of sales.  In the last 30 days there were 658 single family homes sold.  That is a number that is has been declining of the last few weeks.

With the current listings and sales that give us a listings/sales ratio of 3.2:1.  That is a slight increase over last week.  So as this number continues to increase that would be an indicator that the market is softening.  

I am hoping that is just a seasonal softening of the market which normal.  On a brighter side of the homes that did sell the average days on market are 38.

This is also an indicator that if a property has been on the market longer than that it is properly over-priced.  Even in today’s market the very best deals are selling in the first 3 days of them hitting the market.

So in order to get the best deal if you are thinking about buying would be to contact Kate at 780-634-8151 so she can set up a search that will allow you to receive the homes that would match your criteria the moment they are listed and you can take advantage to view this deals before they are sold to another buyer.

Wow is all I can say about last week.  I was really busy all week listing, showing and selling homes.  However the statistics would be a little different then what I experienced last week.

One of the things that I did notice last week was the number of homes that were taken off the market where their listing contracts had expired.  Even with the new listings coming to the market I noticed that the amount of listings available is down with 2, 095 single family dwellings available for sale in Edmonton proper.

In the last 30 days there were 678 single family dwellings sold in Edmonton proper.  Also a drop from the previous few weeks.  With the listings and sales we are experiencing that would give us a listing to sales ratio of 3.1:1 which to me indicates that the market values are starting to stabilize.

The next few weeks are going to be critical to determine is we area going to remain stable or if we are going to see a decline in house valuations.  It is apparent to see that the local and global economies are still not recovering to the levels and that is making people concerned and hesitant in moving forward with large purchases such as home.

There has been some strengthening in Alberta’s resale market, said Lai Sing Louie, regional economist for CMHC in Calgary. “We’re expecting that the second half (of the year) will be much stronger than the first half,” he said. Most markets in Alberta have turned into balanced ones, added Louie. In the first quarter, they were generally buyers’ markets. Louie said low mortgage rates have been a big factor in spurring residential sales. “Affordability has improved quite significantly,” he said. “We’ve also seen some government incentives to encourage first-time homebuyers and that’s helped. And I also believe that people who have been waiting to see how the markets move finally have the confidence now to go into the marketplace and buy.”
2010 average price forecast for Alberta $343,200.

Source: Calgary Herald – Friday, August, 28 2009

Edmonton, September 2, 2009: Residential sales through the Edmonton and Area Multiple Listing Service® in August were lower than the number posted in July but higher than sales the previous August. There were a total of 1,673 sales last month as compared to 2,277 in July (a monthly record) and 1,541 in August 2008.

“Although sales numbers cooled a bit after record sales in June and July, we are still experiencing the strength of the market in Edmonton,” said Charlie Ponde, president of the REALTORS® Association of Edmonton. “Our members continue to report high buyer interest. Although sales in the fall are slower than the spring, buyers are looking for a home and sellers can reach them through the MLS® System.”

Prices for Single Family Dwellings climbed steadily all year and peaked in July at $372,741. The average* SFD sold for $366,788 in August, down 1.6 percent from the previous month. The current price is just $2,400 lower than average prices in August 2008.

Condominium prices were also down in August; dropping less than one percent to $242,035 on average in August from $244,265 in July. By comparison, the average price for a condo in August 2008 was $251,048. The average price has come down because of the increased amount of lower priced product that has entered the market rather than the value of a particular property being marked down.

Duplex and row house properties sold on average for $294,007 and the combined Average Residential Price was $318,321 in August; down 3.3% from $329,207 in August 2008.

“Our market is operating normally,” said Ponde. “There is a balance between buyers’ and sellers’ expectations and, while prices fluctuate seasonally, there are no major price swings. The strong inventory and activity levels result in moderation and stability.”

The average days-on-market was 48 in August; up two days from July. At the end of August there were 6,445 residential properties active on the MLS® System.

Highlights of MLS® System 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

Sept. 01, 2009

Well the month of August was pretty similar to what we saw in the month of July.    As of this morning there were 2,069 single family dwellings listed with the Edmonton Realtors Association on MLS.   In the previous 30 days there were 712 single family dwellings that sold. That would give us a listing to sales ratio of 2.9:1 a slight increase from last month, but still well below the 4:1 listing to sales ratio we need for a balanced or neutral market. 

I am not concerned with the slight increase in the ratio as I mentioned it is still below the neutral point and we have to take into consideration that it was August which is typically a slower month as people try the get the last of the summer holiday fun in, and then start to get prepared to get the kids ready for school.

I am expecting to see the sales start to increase in the month of September and October as we get into our normal fall market. Home valuations like most things are dictated by the law of supply and demand.  And at this time the lower ratio indicates a fairly high demand.

I expect the balance of the year to continue to be strong, but I do expect that 2010 will be even stronger, and valuations to continue to increase.

So what does that mean to you?  Well if you are a first time buyer you are going to want to get into the market as soon as possible.   If you are looking at selling your current home to move to a bigger or more expensive home you are going to want to do it as soon as possible.  However, if you are downsizing, or moving to a lesser expensive home then you want to wait for market valuations to continue to rise before you make your move.

Please feel free to give me a call anytime on my cell 780-995-6520 should you ever be curious on the value of your home and would like a free no-obligation comparative market analysis of your home.

Morning everybody,

I want to apologize for the delay in getting this statistics out this week.  We are doing some changes and upgrading to both the website and the blog.

As of this morning there are 2,192 single family homes listed on MLS in Edmonton proper.  That number has remain fairly consistent over the last few weeks.  The number of sales in the past 30 days were 788 a slight increase over last week.  That give us a listing to sales ratio of 2.78:1 still lower than the 4:1 we need for a balanced ratio that we need for a neutral market.  So I expect that we should see valuations continue to rise slightly over the short term, or until we see that ratio get closer to the 4:1.

Well the numbers today start to show a slowdown in sales.  But that is normal this time of year.  Typically we see a slowdown in sales in July and August, a seasonal slowdown and sales pick up again in September.

 As of his morning there were 2,167 single family dwellings for sale in Edmonton proper which is fairly steady in comparison for the last few weeks.  What has dropped off was the number of sales at 752 which is lower than we have seen in the last few weeks.

However that still give us a listing to sales ratio of 2.88:1 well below the 4:1 that we need for a balance or neutral market.  With that kind of ratio I expect valuation to continue to rise.

The average home that is selling is 1,453 sq.ft,, avg. selling price was $370,970, taking 36 days to sell, and selling within 97% of the listing price.  Keep in mind that avg. selling price and valuations are two different things.

If you have been thinking about buying your first home or upgrading to a bigger and more expensive home the sooner you do it the better off you will be.

Source of listing and sales data provided by the Realtors Assc. of Edmonton

Wow what a busy long weekend this was.  Normally long weekends are slow as people are out of town enjoying their days off.  Well this long weekend I still managed to get 3 of my listings go deal pending.  This is indicative to me that there are many people out there looking at homes and today’s stats seem to back that up.

As of this morning there were 2,071 active single family homes listed in Edmonton proper.  That is a slight drop over last week.  We also had 905 homes sell in the last 30 days.  That would give us a listing to sales ratio of 2.29:1 which is slightly lower than last week, and indicates that we are going to see continued upward pressure on valuations.

With valuations of homes increasing if you are thinking of buying or thinking about making a move up to a more expensive home don’t wait any longer.  Save some money and do it now.