Edmonton Real Estate Blog

Today (June 21, 2012), the federal government announced amendments to government-backed mortgage standards in Canada that will take effect on July 9, 2012. These changes will make it more difficult to qualify for a mortgage, and will reduce the mortgage amount that you will be able to get. Buy now before the changes come into affect.

Jim Flaherty, Minister of Finance, announced the following changes to the standards governing government-backed insured mortgages:

the maximum amortization period was reduced from 30 years to 25 years;  the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 85 per cent of the value of their homes; the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio at 44 per cent; and the availability of government-backed insured mortgages was limited to homes with a purchase price of less
than $1 million.

Better buy now before the mortgage rule changes making it more difficult to buy a home, and making it less affordable.

http://business.financialpost.com/2012/06/21/ottawa-tightens-mortgage-rules-what-the-analysts-say/

I am excited to announce that we are now proud members of the Edmonton Chamber of Commerce

The month of May is almost over and a review of the number of listings and sales of single family homes in Edmonton proper show a very robust market.

Currently there are 3,094 single family homes listed in Edmonton proper. That is a healthy level of inventory on the market giving buyers ample homes to choose from.

The number of sales has been on the rise. In the previous 30 days there have been 1,062 single family homes sold in Edmonton proper.

With this level of homes available for sale, and the number of sales that have taken place in the previous 30 days this would give us a listings to sales ratio of 2.91:1. This low of a level has not been seen for some time in Edmonton. Also with a ratio so much below the 4:1 that we need in Edmonton for a neutral or balanced market there is going to be substantial pressure for home valuations to rise.

Buyers should not put off buying a home before house prices go up any further.

* Information source: The Realtors Assc. Of Edmonton as of May 30, 2012.

Edmonton, April 2, 2012: At the end of the first quarter, the REALTORS® Association of Edmonton reports that the average residential price in the Edmonton area is up 2.2% when compared to a year ago.
The all-residential average1 price, at $335,187 compared to $328,094 in March of last year. Single family detached (SFD) and condominium average prices were stable year-over-year with SFD prices up 0.2% and condos down 0.7%.

“Other markets, such as Toronto, are reporting feverish real estate activity involving multiple offers and unconditional offers but our market is calm, orderly and slowly evolving,” said REALTORS® Association of Edmonton President Doug Singleton. “Listing activity is up when compared to last year but sales
and inventory are down which could indicate that market activity will pick up markedly as the summer progresses.”

On the Multiple Listing Service® System, sales and listings by REALTORS® in March were up, with 3,271 residential listings (up 23.5% from February) and sales of 1,533 (up 24.5% from the previous month). As a result, the inventory of residential properties available for sale was up 14.6% at 6,851 properties. At the current sales level, there are four and half months of inventory available. In total, there are 10,640 properties of all types (commercial, rural and residential) on the Edmonton and Area Multiple Listing Service®.

Market stability is reflected in the sales-to-listing ratio which is unchanged from month-to-month. The average days-on-market dropped in March byone day from 54 to 53 and residential properties are selling at about the same pace as this time last year on a year-to-date basis (46%).

In March, the average price of a single family detached home was $380,083, up 1.3% from the previous month. The average price of a condominium in March was $231,629, down 1.4% from the February price (last month the price of condos advanced over 8% in a month). Duplex and rowhouse properties sold on average for $319,020; a 4.1% improvement from the previous month.

“April is the start of the real estate season when people who want to buy and sell real estate are most active,” said Singleton. “There is speculation that mortgage rates will start to rise which makes it more difficult for first time buyers. However, there is lots of choice in our market with new properties
coming available daily. Whatever your housing situation you can trust the advice of your local REALTOR® who is here when life happens.”

* Average prices indicate market trends only. They do not reflect actual changes for a particular property, which may vary from house to house and area to area. Prior period figures have been adjusted to include late reported sales and cancellations and therefore reflect a more accurate view of the period than previously reported at month end.

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.

Source: The Canadian Press  Link: http://www.edmontonsun.com/news/canada/2009/08/26/10619921.html

TORONTO — The Frigidaire division of Electrolux Canada Corp. said Wednesday it is voluntarily recalling nearly 43,000 stoves sold throughout Canada and the United States over a seven-year period.

The company issued warnings about safety hazards related to its Frigidaire and Kenmore Elite freestanding electric ranges with rotary knobs and digital displays. Frigidaire said the stoves’ elements may heat up without being turned on, fail to cool down after being turned off, or heat to different temperatures than those specified by users.

The recall covers 42,955 units — 22,125 Kenmore stoves and 20,830 ranges bearing the Frigidaire brand.

The company said models sold in Canada have not been linked to any serious injuries or property damage, but added there have been six minor incidents south of the border.

The affected ranges were sold across Canada between June 2001 and September 2008 through a variety of retailers.

Sears Canada, which sold the units in its brick-and-mortar stores and through online and hardcopy catalogues, said it would conduct free repairs for any concerned customers.

Frigidaire, which is offering the same service, urged consumers to stop using the stoves immediately until repairs are completed.

Customers are encouraged to contact Frigidaire at 1-877-609-7857, or phone Sears Canada at 1-866-691-9948.

Below is the list of model numbers affected by the recall, as provided by Frigidaire. Model and serial numbers are located inside the drawer at the base of the unit on the righthand side of the frame.

Kenmore Elite Model Numbers Beginning Serial Number Rangemwith these Letters and Numbers

C970-68802 VF122xxxxx to VF831xxxxx

C970-68803

C970-68804 or

C970-68808

C970-68809 NF122xxxxx to NF806xxxxx

C970-68830

C970-68832

C970-68833

C970-69803

C970-69804

C970-69808

C970-69809

Frigidaire

CGLEFM97DB VF122xxxxx to VF831xxxxx

CGLEFM97DS

CPLEF398AC or

CPLEF398DC

CPLEFM99EC NF122xxxxx to NF806xxxxx

CPLEFZ98GC

PGLEF388CS

PGLEF388ES

I am amazed to see the listing to sales ratio continue to drop each week like we have seen in recent weeks.  There is no doubt in my mind that valuations specially in the under $350,000 is rising.  That is mainly due to the fact that the affordability and low interest rates has allowed the first time buyer to come back into the market.

As of this morning there were 2,289 single family homes listed for sale in Edmonton proper.  In the last 30 days 904 single family homes were sold.  That gives us a listing to sales ratio of 2.53:1 again a further drop from last week, and dropping us below the 4:1 benchmark needed for a balance market.

Eventually we should see the increased sales volume and valuation increases in the upper price ranges as the market continues to improve and we see the individuals who have sold their homes in  the lower prices purchase their new homes in the upper price ranges.

Let’s see what next weeks brings us…

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

I am happy to announce the appointment of Kate Cosentino to the positions of Client Care Coordinator for FindMyHouse.ca, and Personal Administrative Assistant to Mr. Serge Bourgoin.  I am confident that she will be a great asset and will help me make sure that all my clients receive the best service possible.

Feel free to contact her for any assistance. Her direct line is (780) 634-8151