MLS® Activity for April 2009

Source: Realtors Association of Edmonton

For those of you looking for this update on my usual Monday morning I apologize as it was a very hectic day yesterday.

Well the market continues to improve.  As of this morning there were 2,458 single family homes on the market in Edmonton proper, while there were 869 sales in the previous 30 days.  That give us a listing to sales ratio of 2.83:1. This ratio is again lower than last week and at this level is a strong indicator that valuations should be rising.

The biggest driver to the market has been the first time buyers as homes have become so affordable since the devaluations that had occured since May 2007.  And these other statistics do support that.  Of the 869 sales that occured in the last 30 days a full 56% of them were for homes under $350,000, 26% were for homes between $350,000 – $450,000, and only 18% were for homes that sold over $450,000.

Based on those kinds of numbers I would expect to see the rebound in valuations in the lower price ranges before we see it trickle up to the higher valued homes.  Again making it all that more important that if you are a first time buyer or a buyer looking to upgrade to a more valuable home to act sooner than later.

According to figures released by the Canadian Mortgage and Housing Corporation (CMHC) in May, housing starts in the Edmonton Census Metropolitan Area (CMA) totalled 355 units in April compared with 683 units in April 2008. After four months of activity so far this year, total housing starts have amounted to 1,116 units across Greater Edmonton, down from 2,998 units recorded during January to April of 2008.

Builders poured foundations for 206 single-detached homes in April, representing an increase of almost 16% from the 178 units started in April 2008. “This represents the first year-over-year improvement in single-detached activity since June 2007,” noted Richard Goatcher, CMHC’s Senior Market Analyst based in Edmonton. To the end of April, 607 single-detached homes began construction across Greater Edmonton, down from 835 units during the first four months of 2008.

Multi-family starts, which consist of semi-detached, row and apartment units, remained on a downtrend in April. A 26% year-over-year gain in row starts was offset by continued weakness in new apartment activity. Semi-detached, row and apartment starts totalled 149 units in April, representing a decrease of about 71% from the 505 multiple unit starts in the same month last year. Multiple starts have amounted to 509 units across Metro Edmonton from January through April, down nearly 77% from 2,163 multiple starts tallied in the first four months of 2008.

Housing starts in Alberta’s seven largest cities totalled 794 units in April, representing a decrease of 61% from 2,034 units in April 2008. All seven cities reported year-over-year declines.

Things keep improving for sellers and there is more bad news for buyers.  As of today on the listed on the Realtors Association of Edmonton there are 2,491 single family homes listed in Edmonton proper.  In the previous 30 days there were also 837 single family homes sold.

That would give us a listings to sales ratio of 2.98:1.  This ratio have been dropping every week since we broke the 4:1 neutral market barrier and is telling us that valuations are rising.

You buyers need to get into the market as soon as possible to get the best deal and possibly save yourself thousands of dollars.  Please feel free to  call me on my cell 780-995-6520 if you would like some help finding that next home.

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.

The market is changing fast… very similar to what we saw when the market had it’s down turn back in May 2007.

As of this morning there were 2,521 residential listings in Edmonton proper.  In the last 30 days there were 684 listins sold which again is an increase over last week.  That would give us a listing to sales ratio of 3.56:1.  Again that is a drop from last week.

For those of you who have been following this blog you will remember that historically in Edmonton we need a listings to sales ratio of 4:1 for a neutral or balanced market.  Now for 2 weeks in a row we have been below that market which supports my comments lasts week that we have probably seen the bottom of valuations.

I wouldn’t be surprised at all if we were to start seeing valuations start to rise again soon.  So if you were thinkg of buying then the sooner the better as they say.

CAUTION!!

  Buyers should be really aware that the bottom of the real estate market in my opinion has hit, and I am expecting valuations to possibly start rising.  So if you have been sitting on the fence waiting for prices to drop lower, then jump off quickly and start looking.

As of this morning on the MLS system in Edmonton proper there were 2,497 single family dwellings for sale, a number that has been holding pretty stable.  However, the number of sales are on the rise.  In the last 30 days there were 630 single family dwellings sold.  That would give us a listing to sales ratio of 3.96:1, the lowest seen since early 2007.  It is also lower than the 4:1 we need for a balanced or neutral market, and an  improvement over last week.

 If this trend continues you can expect valuations to start rising.  If you have been thinking of  buying in the next year now is the time to act and save money.

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

Title Insurance will insure the title of Real Property from the time of purchase or refinance until the purchase/owner sells the property.  It does not transfer to a new owner.  This is the main difference between Title Insurance and a Real Property Report.

A Real Property Report is usually good for 20 years (depending on the Lender), and as long as there are no changes to the exterior of the property it is transferrable to the new owner.

 Most Lawyers acting on behalf of a buyer will insist on a Real Property Report with Municipal Compliance, as it is transferrable and immediately confirms the state of the Title.

 Title Insurance can be used when both parties to a contract (purchaser and seller) agree, or in a refinance situation where the individual refinances his/her home and cannot find the Real  Property Report or has made changes to the exterior of the property that are not reflected on the Real Property Report in  his/her possession.

 Title Insurance is not transferrable and most buyers’ lawyers will insist on the Real Property Report/Compliance, but Title Insurance does have some advantages.  Title Insurance protects against fraud, defects on Title, invalid title documents, and charges to a property arising after the purchase.  Title Insurance also allows you to close your transaction before registration at Land Titles (Gap Coverage).

 This is a common situation facing buyers and sellers that is important.  So please, ask questions regarding the difference between a Real Property Report and Title Insurance before you sign the Offer to Purchase.

Source: James Pittaway – Pittaway and Assc.          Phone: (780) 702-5056

Just reduced $10,000 for quick sale! Renovated and upgraded 1150 sq.ft. bungalow with a finished basment and large fenced yard.  Upgrades included new carpet, ceramic tile, kitchen cabinets, counter tops, bathrooms and some of the windows have been replaced.  This home is in a ready to move in condition.  Ideally located with quick access to all amenities.